Aug 05, 2010 (LBO) – Sri Lanka’s Nations Trust Bank’s (NTB) net profit for the June 2010 quarter rose 86 percent to 280 million rupees as interest margins improved, a stock exchange filing said. “The second quarter 2010 represents the fourth consecutive quarter since September 2009 in which NTB has reported continued growth,” chief executive Saliya Rajakaruna said in a statement.
“Such growth is visible across the banking and trading book.
“Not only are our operations generating good and sustainable results but also the revenue model is contributing to internal capital accumulation to ensure a stable and a growing business.”
The accounts showed interest income fell 22 percent to 2.5 billion rupees while interest costs fell at a faster 42 percent to 1.39 billion rupees.
This allowed net interest income to rise 32 percent to 1.15 billion rupees as the cost of funds fell.
Basic earnings per share rose 49 percent to 1.34 rupees.
Non-interest income rose six percent to 477 million rupees over the period while provisions for bad loans fell 55 percent to 91 million rupees.
Total performing loans and advances rose 15 percent to 38.6 billion rupees as at June 31, 20