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| Sunday, 14 August 2005 |
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| News Business Features Editorial
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Nations Trust Bank shows steady progress in first half Nations Trust Bank continued its steady progress with an Operating Profit of Rs. 99.4 million for the six months ended June 2005. This compares very favourably with the Rs. 71.4 million recorded during the same period last year, an increase of over 39%. Profit after Tax and VAT for the current half-year was Rs. 42.7 million. Net interest income increased to Rs. 408.9 million from Rs. 268.3 million for the same period last year, an increase of 52%, as a result of pleasing growth in advances and lower cost deposits. Fees and other income too rose from Rs. 208 million to Rs. 269 million, an increase of 29%. Costs excluding loan loss provisioning increased by 28%, mainly due to the additional costs of running the six new branches opened during 2004. In keeping with the Bank's conservative policy of loss provisioning, provision has been made for all known and potential bad debts. The increased provisioning for the period includes hair cut provisions in line with the new Central Bank regulations, and the credit card portfolio which is now reaching a level of maturity. In addition, the Bank also follows a general provisioning policy of 1% of advances. Compared to the end of 2004, Customer Deposits increased from Rs. 10.4 billion to Rs. 12.3 billion, an increase of 17% and Loans and Advances from Rs. 9.2 billion to Rs. 10.7 billion, an increase of 17% reflecting the success of the various teams managing the different market segments. The Bank also launched its leasing business at the end of last year and this has grown in line with expectations. |
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