NDB Capital Holdings profits surpass Rs. 700 m

NDB Capital Holdings Chairman Ashok Pathirage

NDB Capital Holdings PLC (NCAP) recorded a revenue of over Rs 1.05 billion in the first nine months of 2013 compared to Rs. 516 million during the first nine months of 2012, a twofold growth. This increased revenue translated to a profit of Rs. 707 million at the Group level, an over 1.9-fold growth compared to the Rs. 369 million recorded during the corresponding period of the previous year, a company release said.

The growth in Group profitability was supported by the strong performance of its fee based businesses carried out through its subsidiaries, NDB Investment Bank Limited, NDB Securities (Pvt) Limited and NDB Wealth Management Limited.

NCAPs impressive business performance was in spite of the company reducing its asset base from Rs. 11.7 billion at the end of 2012 to Rs. 5.5 billion as at the end of September 2013. This was a direct result of the Company returning the Rs. 6.7 billion realised through the sale of direct and indirect stakes held in Aviva NDB Insurance PLC, to NCAP shareholders by way of a share repurchase and dividend payment.

During the quarter, NCAP took a giant step to venture into Private Equity (PE) fund management with Zephyr Management LP (Zephyr), a New York based emerging market PE fund.

The two parties entered into an agreement, subject to obtaining all regulatory approvals, to set up a PE management company and eventually launch Sri Lanka's first dedicated country PE Fund.

Chairman Ashok Pathirage said, "Despite the tough conditions which prevailed in the country's equity markets, the NCAP Group managed to record excellent performance. This was a direct result of the company being well diversified within the capital market sphere and a reflection of the leadership role which our group companies play in their lines of businesses".

"NCAP Group's new proposed venture into the PE fund management business completes the missing link in the product offering portfolio of NDB Group which makes it a truly diversified financial services conglomerate," he said.

CEO, Vajira Kulatilaka said, "NCAP Group's flagship company, NDB Investment Bank carried out seven listed debenture issues raising over Rs. 12 billion from the market. NDBIB also has plans to manage more listed debenture issues during the last quarter of the year for leading Sri Lankan corporates."

"The concept of private equity is new to our markets and many businesses can reach their maximum growth potential with the right equity partner getting involved at the optimum time. We believe that with the formation of the PE Fund, the NCAP Group with Zephyr, will create substantial value addition for the economy," he said.