Posts PBT of Rs .3.1 b
Deposit base surpasses Rs. 600 b
Non-performing loans significantly reduced
Nation Savings Bank (NSB) said yesterday its deposit base surpassed Rs. 600 billion by the end of March 2016, supported by the growth of both savings and fixed deposits.
The Bank also witnessed a positive change in deposit mobilisation mix during the first three months of the year. The total mobilisation for the period was Rs. 20,265 million which consisted of Rs. 7,518 million in savings deposits. The total assets of the bank increased over Rs. 850 billion during the first quarter (1Q) of 2016.
During the period under review the Bank focused on improving the asset quality of the credit portfolio with the resultant improvement in NPL ratio. NPL ratio of the Bank has improved to 2.3% by the end of March 2016 when compared to 7.2% NPL ratio reported in the corresponding period last year, a significant achievement to further strengthen the financial health of the bank.
Mark to market losses of both Equity and Government security trading portfolios unfortunately increased to Rs. 1,167 million when compared to a loss of Rs. 450 million recorded in the corresponding period last year. The reasoning for these increased losses were the bearish trend experienced in the stock market and the rising market interest rates. Despite these market challenges, the bank recorded a Profit before Tax (PBT) of Rs .3,095 million compared to Rs. 2,980 million reported in the same period last year. Profit after Tax (PAT) reached Rs. 2,350 million compared to Rs. 1,840 million reported during the corresponding period last year.
Net Interest Margin declined marginally to 3.12% in 1Q 2016 from 3.32% recorded at the end of 2015 due to relatively higher interest cost. Return on Average Assets (before tax) declined to 1.45% as at 31 March 2016 from 1.60% recorded as at 31 December 2015.
During the first three months of the year retail lending portfolio of the Bank has recorded a growth of 4% with personal loans reporting a growth of 22%. Although the Pawning Portfolio continued with its negative growth the overall lending portfolio of the Bank reported a 3.6% growth in 1Q 2016.
The bank’s Tier 1 capital adequacy ratio stood at 17.09% while the total capital adequacy for the reviewed quarter was 16.08%. These ratios however, remain well above the regulatory standards for well capitalised banks. The liquidity ratio of the bank stood at 78.74% by the end of March 2016, which is well above the regulatory requirement of 20%.
In view of improving Financial and Social inclusion of the people in remote areas, the bank added three new branches at Uhana, Udugama, Siyambalanduwa increasing the total branch network of the bank to 248 branches as at 31 March, 2016.
NSB has been rated as the third most valuable brand in 2016 by Brand Finance Lanka, a steady increase from eighth place in 2013. This is testimony to the increased stakeholder trust and confidence.