NDB Capital Holdings records impressive growth

NCAP is a subsidiary of the National Development Bank PLC.

NDB Capital Holdings PLC continued its growth momentum in the first nine months of 2014 helped by efficient investment management strategies amidst a buoyant stock market and declining interest rates.

The Company recorded a profit of Rs. 261 million for 2014Q3 up from Rs. 125 million a year ago, a 108% YOY growth.

The consolidated quarterly profit for the Group was equally impressive with a growth of 84%, from Rs. 158 million in 2013Q3 to Rs. 292 million in 2014Q3.

The first nine months’ performance of the Group also recorded a similar growth trend as the revenue increased by 25% from Rs. 879 million (adjusted) to Rs. 1,102 million, whereas a 40% growth was recorded in profits to Rs. 746 million in 2014 compared to the adjusted profit of Rs. 532 million in 2013.

The reason for the adjustment is due to NCAP Group recording an extraordinary profit during the 2013Q1 owing to income from investing approximately Rs. 6.7 billion in cash it received via the divestment of direct and indirect stakes in Aviva NDB Insurance PLC.

However, this cash was returned to the shareholders towards the end of 2013Q1 and was not available for the Company for investment beyond that period.

The outstanding performance in the first nine months of 2014 was mainly fuelled by efficient asset allocation and successful investment strategies. The Group annualised ROE also increased to 15.21% in the first nine months of 2014 from 10.76% in 2013.

The Chairman, Ashok Pathirage said, “Our Group has supported the capital market development of Sri Lanka by being a platinum sponsor for the CSE organised, Invest Sri Lanka – Investor Forum, held in October this year. Such events play a critical role in attracting foreign investments to the development of the market and the overall economy."

CEO Vajira Kulatilaka said, “NCAP with ACL and Trydan partners, entered into an agreement with Hemas Holdings PLC to buy its 75% stake of Hemas Power PLC.

This latest addition to our medium term investment portfolio will provide diversification benefits to the Group”.