Steady performance from NTB amidst turbulence

Nations Trust Bank PLC has reported steady growth in the first quarter of the financial year ending 31 March 2022 amidst challenging local and global macro- economic conditions, the bank announced this week. The bank posted a 4 per cent year- on-year (YoY) increase in Profit Before Tax for the period under review, it said in a media release.

Commenting on the results, Hemantha Gunetilleke, Director/CEO, said: “During this quarter, Nations Trust Bank continued to focus on our core banking operations and risk management while serving customers through our strong franchise in consumer, commercial and corporate banking. By staying focused on our core values built around service excellence and prudent banking practices, we have built on the bank’s financial strength and stability despite headwinds in the national economy.”

Operating income grew by 32 per cent in comparison to the same period last year, with net interest income growth of 46 per cent, and fee income growth of 21 per cent. The loan book expanded by 12 per cent while the CASA ratio increased to 42 per cent compared to 36 per cent last year.

The bank reported an increase in impairment provisions by 112 per cent on loans and advances. Contributing to this YoY increase was the negative flows from some moratorium loans during the current year. An additional impairment of Rs.990 million on account of investments in Sri Lanka government securities denominated in foreign currency was also made considering the current economic environment. This investment portfolio stands at only

3.6 per cent of the bank’s assets as at end of 31st March 2022.

Overall Tax expense increased during the reporting period owing to the increase in the rate of VAT on Financial Services and the Income Tax reversal related to the Financial Year 2020 which is accounted in 2021. As a result, the Profit After Tax declined by 12 per cent during the 1st Quarter 2022.