The National Development Bank PLC (NDB) closed the first quarter ending March 31, 2018 on a high note with impressive growth in profitability and business volumes.
The 1Q performance was recorded in the aftermath of a highly successful financial year in 2017, where it was recognized as the Best Bank in Sri Lanka by the prestigious Global Banking and Finance Magazine of USA in 2018 for the excellent performance.
The Bank’s Gross income increased by 20% to Rs 11,943 million, reflecting the enhanced business volumes recorded during 1Q, 2018, compared to Q1 2017. Net Interest Income (NII) recorded an impressive growth of 44%to Rs 3,351 million. The NII was strengthened by the improvement in Net Interest Margin (NIM) to 3.5% from 3.0% in 2017 and the growth in business volumes.
The full suite of Bank’s lifestyle CASA products with innovative features, appropriate balance sheet funding, etc., enhanced the NIMs.
Net fee and commission income also increased at a satisfactory 28% to reach Rs 710 million for the quarter. Growth in the loan book, particularly in leasing and credit cards, and the accelerated penetration of the Bank’s mobile banking app were instrumental in generating enhanced fee based income.
NDB aggressively drove its credit card and digital banking propositions in the market, with attractive promotions in Q1 2018.
Net gains from trading and net gains from financial investments both grew in Q1 2018 over Q1 2017, benefiting from the movement in exchange rates and market interest rates. Accordingly, total operating income reached Rs 5,410 million, a growth of 44% over the comparative period.
The Chief Executive Officer of NDB Dimantha Seneviratne, commenting on the quarter’s performance said the results mark a sound beginning for the year and thanked all the stakeholders of the Bank for the support.
He mentioned that the Bank continues to be guided by its mid-term strategy and is meticulously pursuing the targets with the ultimate goal of becoming a systemically important bank by 2020.
He also made reference to NDB’s latest feat in being recognized as the Best Bank in Sri Lanka for 2018 by the Global Finance Magazine of US and the triple awards received from the Global Banking & finance Magazine of UK for year 2018, for Best SME Bank Sri Lanka, Best Bank for Credit Cards Sri Lanka and Best Retail Banking Product – (Personal Loan Product – Dream Maker Loans) Sri Lanka.