Strong Showing

Aug 14, 2009 (LBO) – Sri Lanka’s NDB Bank group profits grew 45.7 percent to 529.7 million rupees in the June 2009 quarter from a year earlier, on revenues that grew 22.5 percent to 3.79 billion rupees, the company said. Deposits grew 24 percent to 38.5 billion rupees from 31.0 billion in December.

NDB group gross assets rose 8.0 percent to 90.3 billion rupees and net assets rose 3.0 percent to 12.1 billion rupees.

Interest income grew 9.8 percent to 2.93 billion rupees, interest expense grew at 10.1 percent to 1.93 billion rupees allowing net interest income to grow at a slower 9.2 percent to 996 million rupees.

Non-interest income doubled to 864.3 million rupees from 429.2 million rupees on unspecified other income of 677.3 million which increased 224 percent from 208.6 million rupees.

Loan loss provisions rose to 46 million rupees from 7.9 billion rupees. NDB said that it had tighter provisioning than specified in a 2008 Central Bank direction.

“However, NDB Bank opted to follow the earlier more stringent process in order to ensure the strict management of its loan book,” the bank said in a statement.

Group non-performing loans grew to 1.61 billion rupees in June from 1.27 billion rupee