The National Development Bank PLC (NDB) has announced robust financial results for the nine months ending 30 September 2024, highlighting its resilience and strategic adaptability in an improving economic landscape.
NDB Director/CEO Kelum Edirisinghe stated, “The positive trend in Net Interest Margins (NIMs), cost efficiency, and credit quality reflects our focused strategy to enhance shareholder value and contribute meaningfully to Sri Lanka’s economic revival.” The bank’s commitment to sustainable growth aligns with its strategic objectives, supported by the NDB team and its board.
For the period under review, NDB recorded a net operating income of Rs. 21.5 billion, marking a 9% year-on-year increase. Notably, impairment charges dropped by 21%, sustaining income growth despite challenges in key revenue streams.
Key Performance Highlights:
- Net Interest Margins (NIMs): Maintained at 4.21%, above 4% for three consecutive quarters.
- Loan Book Quality: Impaired Loans (Stage 3) Ratio improved to 6.45%, and asset quality measures strengthened, reflecting the bank’s strategic efforts.
- Operating Costs: Total costs increased by 19% year-on-year to Rs. 12.1 billion, with a cost-to-income ratio of 37.1%.
- Profitability: Pre-tax profit reached Rs. 9.4 billion, while post-tax profit stood at Rs. 4.5 billion. At the group level, profit attributable to shareholders was Rs. 4.9 billion.
The bank’s balance sheet at the end of September 2024 reported assets of Rs. 763.2 billion, with customer deposits at Rs. 611.5 billion and gross loans at Rs. 501.1 billion. Regulatory liquidity and capital adequacy ratios remained strong, with Tier I and Total Capital Adequacy at 11.07% and 15.70%, respectively.
In September 2024, NDB raised Rs. 5 billion in Tier II capital through an oversubscribed debenture issue on the Colombo Stock Exchange, with plans to issue an additional Rs. 5 billion, subject to regulatory approval. This capital aims to further strengthen the bank’s capital adequacy and support future expansion.
As Sri Lanka’s economy stabilizes, NDB remains committed to driving sustainable growth, supporting national development, and creating prosperity for communities across the country.