NDB Bank continues its growth momentum

NDB Bank's Group profit before tax for the first nine months of 2007 increased by 48% to Rs. 2,309 Mn from Rs. 1,563 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. 1,153 Mn compared with Rs. 700 Mn (an increase of 65%) excluding the exceptional capital gain.

For the Bank alone operating profit before provisions for the current period was 2,089 Mn compared with Rs. 1,469 Mn for the corresponding period last year, an increase of 42%.

The profit before tax increased by 24% from Rs. 1,525 Mn in 2006 to Rs. 1,896 Mn during the period while the profit after tax also increased by 17% over the corresponding period last year.

The profit after tax excluding equity capital gains of Rs. 249 Mn for the current period and exceptional group dividends of Rs. 308 m during the corresponding period last year was Rs. 776 Mn as compared with Rs. 586 Mn, an increase of 32%.

Overall, the core banking revenue (net interest income, forex and commissions) of NDB Bank grew at a strong pace (35%) based on a significant growth in loans (21%) and deposits (48%) over the corresponding period last year.

The profit after tax of the Bank for the third quarter was Rs. 263 Mn compared with Rs. 448 Mn for the corresponding quarter of the last year.

The main reason for the decrease was the exceptional group dividends of Rs. 308 Mn realised in the third quarter of 2006 and the general provisions of Rs. 122 Mn made during the current quarter. If these exceptional items are excluded from both quarters, the profit after tax for the third quarter of 2007 was Rs. 360 Mn compared with Rs. 202 Mn for the third quarter of 2006 (an increase of 78%).