NSB’s performance improves in Q3

“The National Saving Bank (NSB) results for the third quarter bear testimony to our commitment towards sustainable business growth, increased efficiency and overall operational improvement despite the challenging circumstances that prevailed in the first half of the year,” said NSB Chairman Sunil Sirisena.

“We are poised for further growth in profitability as we remain focused on growing our core business segments, while building capacity and capability, and developing our assets to improve performance.”

CEO, NSB, Hennayake Bandara said, “Although the performance of the Bank in the first two quarters was below expectation, it has improved during the third quarter.

The Bank recorded an income growth of nine percent mainly due to the increase in interest income on loans and advances. Interest income on loans and advances grew by 44 percent which could be attributed to portfolio diversification. The increase in the cost of funds was higher than the growth in income which resulted in a 12 percent decline in the net interest income to Rs. 8.4 b during the period as against Rs. 9.6 b during the corresponding period last year.

The Bank’s operating profit before tax decreased by 29 percent to Rs. 5.4 b during the first nine months of 2012 compared to Rs. 7.6 b in the corresponding period in 2011. Similarly, profit after tax declined by 31 percent to Rs. 3.7 b during first three quarters from Rs. 5.3 b in the same period last year.