NDB assets grows 18% in 1Q, 2016

The NDB is set on a firm trajectory for enhanced growth in 2016. The Bank is committed to superior shareholder returns through profitable growth. The Bank will also focus on offering banking services combining further technological advancements to its clientele, for meaningful banking with NDB, Chief Executive Officer of NDB, Rajendra Theagarajah said.

He was making these comments at the 'Investor Forum' to present the financial performance of the first quarter for 2016. The forum was attended by a large gathering of investors, investment advisors, stock brokers, fund managers and media.

Group Chief Financial Officer Faizan Ozman and Chief Executive Officer - NDB Investment Bank Limited, Darshan Perera were also present.

The financial performance and its strategy and plans for the future of the NDB Group were discussed at this forum.

Chairman, NDB, N. G. Wickremeratne said the Bank hopes to expand its branch network further, during the year with special focus on localities in need of assistance for their economic revival.

NDB also launched its mobile banking facility early this year and e-statements with all banking products including credit cards and Group company products are also available.

The net interest income (NII) of the NDB Group was Rs. 2,064 million as compared to Rs. 1,984 million, a 4% increase over the comparative period. Group net fee and commission income recorded a 13% growth to reach Rs. 765 million for the period, which affirms the Bank's greater focus on fee-based income in a challenging interest rate environment. Net gains from financial investments also grew by 41% YoY. Accordingly, NDB Group's total operating income grew by 7% to reach Rs. 3,346 million, as compared to Rs. 3,142 million for the comparative period.

Impairment charges for loans and other losses for the period was a charge of Rs. 546 million as compared to a release of Rs. 64 million in Q1, 2015. Individual impairment charges of Rs. 350 million represent specific provisions made for few customers, based on sound judgement and objective evidence. However, a stringent recovery process is being pursued to minimise any significant losses that may arise from such facilities.

Total operating expenses increased by 10% YoY across the Group to Rs. 1,723 million. The Bank opened six new branches during the first three months of 2016, which increased the premises and establishment costs.

Given this expansion in the Bank's network, the Bank has managed its costs well during the said quarter. The Cost to Income Ratio (CIR) was 46.34% and compares with a CIR of 49.55% as at end 2015.