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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2582

National Development Bank ups earnings by 73 percent in first half 2007

By Quintus Perera – Asian Tribune

Colombo, 04 September, (Asiantribune.com): The results released by the National Development Bank indicates that the first half of 2007 showed the profit increasing of 73 percent which is attributable to ordinary shareholders to Rs.855 million when compared to Rs.495 million in the corresponding period last year. Increase in Net Interest Income (NII) and the capital gains made on non-quoted trading securities were the main contributory factors towards the substantial increase in the bottom line.

Total net revenue for the first six months witnessed a 36 percent growth to stand at Rs. 2.56 billion compared to Rs. 1.89 billion during first half of 2006 amid substantial improvements in both interest and non-interest income. The YoY growth in net interest income stood at 25 percent backed by a steady YoY increase in net loans and advances by 20.8 percent to Rs.46.3 billion as at 30th June 2007.

Net interest margin also showed an improvement to stand at 4.56 percent compared to 4.21 percent that was prevailing at the end of last financial year.

NDB Bank’s non-interest income grew by a 63 percent in the first six months of 2007 to amount to Rs. 835 million compared to Rs. 512 million during the corresponding period last year. Significant increases in both equity income and foreign exchange gains were the main contributors towards this growth. Equity income witnessed a massive 407 percent increase to Rs. 314 million during the first half of 2007 amid a substantial Rs. 249 million capital gain made on the divestment of a non-quoted equity holding. Foreign exchange income for the period amounted to Rs. 174 million, witnessing an increase of 29 percent over last year’s Rs. 135 million.

- Asian Tribune -

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