NSB recorded a sensational performance beating all the odds during a pandemic. Its highest ever profit for a period of nine months with a Profit Before Tax (PBT) of Rs.20.3 bn and a Profit After Tax (PAT) of Rs.15.6 bn, National Savings Bank (NSB) shows its Covid resistance, strength and continuous financial resilience.
The PBT for the first nine months of 2021 was Rs. 20.3 bn, which marks an increase of 170.6% from Rs. 7.5 bn recorded in the corresponding period last year, while the PAT was Rs. 15.6 bn, an increase of 258.6%.
Gross Income of the Bank grew by 5.8% to Rs. 99.2 bn during the nine months of the year from Rs. 93.7 bn recorded in the corresponding period, last year. Interest income has increased by 6.8% to reach Rs. 96.9 bn, while the interest expense has decreased by 15.7% to Rs. 56.7 bn due to the prevailing lower interest rate regime which leads to lower interest expenses for the deposits as well as borrowings despite the substantial growth in the deposit base during the nine months.
The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII) to surge by 71.6% to Rs. 40.1 bn against Rs. 23.4 bn stood during the same period last year. Consequently, Net Interest Margin (NIM) clocked in 3.68% at the end of nine months of 2021, higher against the 2.56% as at the corresponding period last year.
Net Fee and commission income grew by 46.1% to Rs. 2 bn from Rs.1.4 bn mainly driven by the increase in fee and commission income due to conversion/renewal of the existing loans to reduced interest rates. The increase in NII and Non-Interest Income led the total Operating Income to record a rise of 60.6% to Rs. 42.3 bn as at the end of 30th September 2021.
Operating expenses during the period of nine months of 2021, rose by 21.9% to Rs.14.6 bn compared to the corresponding period of the previous year. Meanwhile, the Bank’s cost to income ratio decreased to 34.7% at the end of the third quarter of 2021 compared to 45.7% reported in the third quarter of 2020.
Impairment charges during the period under review decreased to Rs. 2.8 bn by 38.3% compared to the same period in the last year. The gross NPL ratio increased to 3.51%.
Loans and advances witnessed only an increase of 2.7% to Rs. 530.8 bn over last year’s December figure of Rs. 516.8 bn underpinned by the conversion of Rs. 59.4 bn loans and advances under the “Debt Instruments”. However, without taking the converted loans into consideration, the total loans and advances demonstrated a growth of 16.1%.