HDFC Bank - impressive performance in 2014

Housing Development Finance Corporation Bank of Sri Lanka (HDFC Bank) has recorded Rs. 634.5 million as profit before tax for the year ending December 31, 2014 as against Rs. 231.3 million in 2013 an increase of 174.3% (subject to finalising of Audit). The profit after tax was Rs. 374.6 million as against Rs.158.1 million an increase of 137.1%.

“The new business model with diversification of product portfolio that we have been perfecting over the last two years to strengthen our balance sheet, gained fruition in the year 2014 enabling the Bank to post its highest ever profit after tax of 374.6 million,” said the Bank's Chief Executive Officer and General Manager Nimal Mamaduwa.

The Bank's interest income has grown to Rs. 4.377 billion in 2014 from Rs. 3.538 billion last year, an increase of 24%. The net interest income has risen to Rs. 1.843 billion from Rs. 1.058 an increase of 74%. The fee based income has increased up to Rs. 211.4 million from Rs. 189.9 million an increase of 11%.

The Bank's loan book has grown to 23.4 billion from 19.7 billion an increase of 18.6%. The deposit base stands at Rs. 24.5 billion from Rs. 18.9 billion, an increase of 30%.

The Bank recorded a steady growth in our asset base with total assets of 34.4 billion from 27.5 billion marking a growth of 25% over 2014.

Despite our quality credit evaluation process, we experienced a slight increase in gross non-performing loans (NPL's) from 7.26% in 2013 to 9.81 in 2014 mainly due to certain internal classification issues which are being addressed along with stringent controls in place to bring this figure down to more acceptable levels.