NDB Group posts 17% asset growth

National Development Bank PLC and its group of companies (together referred to as the Group), concluded the financial year 2015 with enhanced business performance as indicated in its balance sheet growth of over Rs. 300 billion by the end of the year.Total assets at a Group level closed at Rs. 315 billion which translated to a 17% growth while the same at the Bank level was Rs. 309 billion, an equivalent of 18% growth over the previous year.

The NDB Group's gross income increased by 3% during the year up to Rs. 26,916 million, over the comparative year. Net Interest Income (NII) of Rs. 7,807 million recorded a marginal decline of 1% over the previous year.

The Group's net fee and commission income and net gains from trading recorded a growth of 23% and 20%.

Net gains from financial investments for the year ended December 31, 2015 was Rs. 494 million at the Group level.

The variation in the net gains from financial investments in 2015 was mainly due to the higher marked to market gains which were realised in 2014.

Group other operating income recorded a growth of 127%.

Group impairment charges for loans and other losses were Rs. 746 million for the year ended December 31, 2015, an increase of 41% over the previous year. Within total impairment, individual impairment was RS. 561 million.

The decrease in the collective impairment, which was based on a Board approved impairment provisioning model, was primarily due to the improvement in asset quality, despite the growth in loans and receivables over the previous year.

The total operating expenses of the Group increased by 16%.Group Profit Attributable to Shareholders (PAS) for the year was Rs. 3,542 million, and the contribution to PAS from the core banking operations and the Group share of profits for 2015 was 74% and 26%.

The Bank paid an interim dividend of Rs. 7 per share in December 2015.