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| Sunday, 1 May 2005 |
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Nations Trust - 47% increase in profit after tax in Q1 Nations Trust Bank announced a 47% increase in profit after tax for the three months ended March 2005, with a Group profit after tax of Rs 22.5 million compared to the same period last year. Operating Profit before VAT and tax increased by 36% to Rs. 48.6 million reflecting the continuing growth momentum which the Bank showed in the second half of 2004. Customer deposits increased by 61% to Rs 11 billion compared to March 31, 2004 while advances also grew by 43% to Rs 9.4 billion during the same period. The focus on acquisition of profitable customers has begun to show good returns largely due to the significant improvement of Information Technology capability and an emphasis on improving customer service levels. A Cost/Income Ratio of 82% [a drop from 75%], a Gross Non Performing Loans Ratio of 5.2% and a Liquidity Ratio of 25%, all reveal the growing strength and stability of this relatively new Bank. Tier II Capital Adequacy Ratio was 13.4% as at the end of the quarter, with a further Euro 2.5 million equivalent (Rs 320 million) of the subordinated debt (to be included under Tier II capital) to be drawn down in the second quarter, which will improve this ratio still further. All the Business Units serving the different target segments i.e. Corporate and Wholesale Banking, Treasury, Retail and American Express Cards had an excellent quarter. The expansion strategy was deferred as planned to consolidate its activities while the initiatives implemented in the period have paid rich dividends and are amply reflected in the results reported. The Bank has an on-line Branch network that now stands at 26 with 30 ATMs that are linked to the American Express network. The ATM card which is linked to the International CIRRUS networks enables local access at over 200 ATMs. The flagship 'Inner Circle' personal banking product showed good progress, whilst 'Nations Leasing' that was started in this quarter got off to a good start. |
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