May 23, 2007 (LBO) – National Development Bank has reported group after-tax profits in the first quarter ending in March 2007 was 299 million rupees, a drop of 77 percent mainly because profit in the same quarter last year had been inflated by a share sale. NDB Bank posted a 1.3 billion rupee profit after tax in the same quarter last year after it sold a part of its Eagle Insurance stake to Britain’s Aviva with a billion-rupee capital gain.
Its profit minus the capital gain was still lower than the same quarter last year.
NDB group has a 32.42 percent holding in Eagle Insurance Company.
In the 2007 quarter under review, NDB group revenue dropped 25 percent to two billion rupees while interest on income increased 25 percent 1.7 billion rupees over the same period.
Total performing loans saw an eight percent increase to 46.8 billion from last year.
Foreign exchange income increased to 91.9 million from 85 million rupees.
The bank’s total assets increased seven percent to 67.4 billion while the group assets also increased seven percent to 69.8 billion rupees.
The group’s capital adequacy was 21 percent by end-March.