NDB Bank achieves significant growth in 1 H, 2007

NDB Bank Group profit before tax in the first half of the year increased by 47% to Rs. 1,676 Mn from Rs. 1,143 Mn compared to the corresponding period last year after excluding the exceptional capital gain of Rs. 1.01 Bn generated in the first quarter of 2006 on the sale of the controlling interest in Eagle Insurance Company Ltd.

The Group's profit attributable to shareholders was Rs. 855 Mn compared to Rs. 494 Mn, an increase of 73% excluding the exceptional capital gain. Shareholders' Funds as at June 30, 2007 amounted to Rs. 8.87 Bn and Rs. 11.03 Bn for the Bank and the Group which are well in excess of the regulatory minimum standards.

The Tier 1 and Tier 2 capital for the Bank and the Group amounted to 15.30 % and 21.42 % compared to the regulatory minimum of 10%, which positions NDB Bank for future growth.

For the Bank alone operating profit before provisions for the first six months of 2007 was Rs 1,384 Mn compared to Rs. 786 Mn for the corresponding period last year, an increase of 76%. The profit before tax increased by 51% from Rs. 911 Mn in 2006 to Rs. 1,378 Mn during the period.

The profit after tax also increased by 86% over the corresponding period last year. The profit after tax excluding equity capital gains of Rs. 249 Mn was Rs. 513 Mn compared to Rs. 384 Mn, an increase of 34%. Overall, the core banking revenue (net interest income, forex and commissions) of NDB Bank grew at a strong pace (32%) based on a significant growth in loans (25%) and deposits (48%) over the corresponding period last year.

The Net Interest Income of the Bank grew by 35% from Rs. 1,118 Mn in the first half of 2006 to Rs. 1,506 Mn for the first half of 2007. This was mainly due to the significant increase in the gross lending portfolio of the Bank from Rs. 38.5 Bn as at June 30, 2006 to Rs. 48.0 Bn as at June 30, 2007.

The total assets of the Bank grew from Rs. 55.2 Bn as at June 30, 2006 to Rs. 68.9 Bn as at June 30, 2007, an increase of 25%. There was also a significant increase in the Customer deposits, which was Rs. 23.4 Bn as at June 30, 2007 as compared with Rs. 15.7 Bn as at June 30, 2006, an increase of 48%.

Net other income of the Bank excluding equity income for the period was Rs. 389 Mn compared to Rs. 320 Mn for the corresponding period, mainly due to the steady increase in commercial banking fee and commission income and forex income. The Bank has also diversified its avenues of fee income through Bancassurance and Western Union Money Transfer.