Nations Trust continues steady performance

The Bank closed the first six months ending June 30, 2015 with a post-tax profit of Rs.1,257 Mn a growth of 9% over the corresponding period.

The results for the quarter were significantly better with post tax profits recording a commendable growth of 26%.

Operating margins improved during the first 6 months as core revenue recorded a faster rate of growth than operating expenses. However, the improved operating margins did not translate to a similar bottom line growth owning to higher impairment charges. Net interest income recorded a growth of 8% over the previous period with NIMs narrowing marginally.

Net fees and commission income grew by 17% for the period under review. Good growth was recorded across the spectrum of fee based products and services.

Fee base income from cards recorded a growth of 18% followed by a 11% growth in other areas including remittances, bancassurance and transactional fees.

The capital position was sound at Rs.16.6 bn with Capital Adequacy Ratios both at Tier 1 and 2 maintained at comfortable levels. Drop in ROE is due to the relatively lower post tax profit for the 6 months.

Director and CEO Renuka Fernando said,

"The positive macro outlook is expected to continue and we are confident that the positive trends seen in credit growth will continue beyond 2015.

The banking landscape is fast changing with the low interest rate regime bringing about many challenges but at the same time opportunities.

We are embracing new concepts of banking such as digitalization, lean, analytics and making them part of our culture to maintain relevance.

People continue to be our biggest strength and we believe that the development and retention of our talent is vital.

This will be one of the key areas of focus for Nations Trust Bank as we look towards concluding yet another rewarding year."