NTB posts Rs 1.9 b post-tax profit
Nations Trust Bank (NTB) closed the nine months ending September 30,
2014 with a post-tax profit of Rs.1,987 million recording a growth of
24% over the corresponding period in 2013. The quarterly performance was
commendable too, with a post-tax profit growth of 35% over the previous
Revenue growth of 24% for the nine months was driven by net interest
income growth of 19% and higher trading income attributed to foreign
exchange realised and M2M gains arising from the FIS portfolio. Return
on equity improved to 21.55% showcasing a well balanced performance.
The year commenced with a lacklustre demand for credit across the
industry and mirroring industry performance, the Bank witnessed a
sluggish growth in the loan portfolio in the first half of the year
which picked up considerably in the present quarter. The loan book
recorded a 10% increase for the nine months and a 15% YoY increase. The
reduction in interest rates saw asset and liability yields declining.
However, the drop in cost of deposits outweighed the drop in loan
yields thereby contributing to improved NIMs. The Bank relentlessly
pursued strategies to improve the mix in high yielding assets while
pushing for growth in low cost deposits.