NDB Bank’s net profits rise 31%

COLOMBO: Sri Lanka’s NDB Bank said its net profits grew 31 percent to 1.5 billion rupees in the September 2020 quarter from a year earlier, helped by trading gains, and lower taxes despite higher loss provisions, interim accounts showed.

NDB Bank reported earnings of 6.78 rupees per share for the quarter.

In the nine months to September the bank reported earnings of 16.63 rupees on total profits of 3.8 billion rupees which grew 32 percent.

Net interest income grew 8.5 percent to 4.8 billion rupees in the quarter, with interest income up 0.55 percent to 13.5 billion rupees, interest expenses down 3.4 percent to 8.7 billion rupees.

About 30 percent of loan book of the banks was in moratorium, the bank said.

Loans grew 7 percent to 425 billion rupees from December to September in one of the strongest rates seen among listed banks.

The bank provided 1.6 billion rupees a loss provisions in the September quarter up from 1.0 billion rupees a year earlier.

“The increase in the impairment charges continued to be caused by the increase in the collective provision charge in line with the growth in the loan book and provisions made at individual levels in response to elevated risks caused by the pandemic and other stresses,” the bank said