National Development Bank PLC (NDB)recorded Rs. 10 bn in profit before tax (PBT), the highest ever in its journey of 40 years. This is a 6% year-on-year (YoY) growth.
NDB’s Profit after Tax was Rs. 5.1 bn, a reduction of 8% over 2018, impacted mainly by the Debt Repayment Levy (DRL) which came into effect on October 1, 2018. The Bank paid an additional tax of Rs. 1,003 mn via DRL. The Profit Attributable to Shareholders (PAS), including the performance of the Group companies was Rs. 4.8 bn.
Director/ Group Chief Executive Officer of NDB, Dimantha Seneviratne said, “Internally, we used 2019 to streamline operations and enhance service capabilities, hence now we are geared for a market revival and have placed greater focus on building staff skills to deliver superior customer experience, internal processes.”
The impairment charges for loans and other losses for the year was Rs. 4.2 bn an increase of 16% over 2018.
The Bank’s non-performing loan (NPL) ratio which was on an upward trend since early 2019, reflecting the wider industry scenario, was contained at 4.77% as at December 31, 2019.
Total operating expenses for the financial year 2019 was Rs. 9.4 bn, an increase of 11% YoY. Personnel expenses increased by 12% to Rs. 4.9 bn. Depreciation and amortisation of Rs. 525 mn increased by 19%.
Total tax charge for the year was Rs. 4.9 bn.
NDB’s total asset base stood at Rs. 530 bn at the close of the financial year, whilst achieving a historic milestone during the year by crossing Rs. 500 bn in total assets. The total asset base grew by 12% over 2018 complemented by the growth in gross loans of 16% to reach Rs. 409 bn and the investment portfolio held for statutory liquid assets purposes. At the Group level,total assets were Rs. 535 bn, a growth of 12% over 2018.
Loan growth during the year, recorded a quantum increase of Rs. 56 bn and was recorded mainly in the Retail and project financing segments. Customer deposits grew by 17% to reach Rs. 405 bn, a quantum increase of Rs. 57.5 bn over 2018. The Bank also raised Rs. 5.6 bn via Basel III compliant Tier II debentures to strengthen the Tier II capital base during the first quarter of 2019.
NDB’s capital ratios as at December 31, 2019 were 9.18% and 13.43% for Tier 1 and Total capital.
The net asset value per share of the Bank improved to Rs. 178.02 from Rs. 166.41 as at December 31, 2018 and the same ratio for the Group was Rs. 195.60.