NTB posts admirable results for 2007

Healthy growth seen in business volumes; Deposits up 39% and Loans & Advances up 28% Nations Trust Bank, one of the fastest growing young Sri Lankan banks in the country, has reported excellent performance for 2007, with a strong all round performance in all key business activities. Productivity, profitability, asset quality and shareholder value have all improved as reflected by the relevant performance indicators.

In the Annual Report 2007 released to the Colombo Stock Exchange on Friday, February 29, 2007, the NTB Group, comprising the Bank and its subsidiaries, has reported a rise in Pre Tax Profit to Rs 847 Mn. from Rs 538 Mn., an increase of 57% over the previous year. Post Tax Profits of the Group too has risen to Rs 504 Mn. recording a growth of 56% amidst a 59% increase in tax liability. These results are specially commendable given the highly volatile market conditions that prevailed during the year.

In his review for 2007, NTB Chairman Ajit Gunewardene has noted that: “Since 2003, the Bank has been implementing a strategy which was retail focused and aimed at building up a strong market presence, a clear corporate identity and a highly profitable business portfolio. This we have done in no small measure, having achieved total assets and post tax profits in excess of Rs. 50 Bn. and Rs. 500 Mn. respectively in 2007”. He states that a new Strategic Plan covering the period 2008 – 2012 has been formulated on the theme of “unparalleled and unprecedented levels of convenience” with a large number of new initiatives and clearly defined milestones and deliverables to ensure full implementation and monitoring performance.

The Chairman has also announced that, subject to shareholder approval at the Annual General Meeting scheduled to be held on March 28, 2008, the Board of Directors has recommended the payment of a first and final dividend of Rs. 1/- per share for the financial year ended December 31, 2007 on the enhanced capital of the Bank, subsequent to the rights issue in February 2008, entailing a payout of Rs. 167.7 Mn. as dividends for 2007 as against a payout of Rs. 125.8 Mn. in the previous year, which is an increase of 33%.

Director / Chief Executive Officer Zulfiqar Zavahir while commenting on the aggressive growth says in his report: “We also have great comfort in the fact that Non-performing Loans Ratio remains below 5%, Cost to Income ratio is trending down nicely, the Bank’s rating by Fitch Ratings Lanka Ltd. has been reaffirmed as A (lka) and brand value continues to increase significantly”. Provisions for loan losses has in fact seen only a marginal increase of 1% over 2006 and the Non-performing Loans Ratio stood at 4.96% as at December 31, 2007. Commenting on the future, Mr. Zavahir remarks: “The future is ours to shape. We have put in place a strong foundation to embark on the next exciting phase of our growth”.

As part of the new Capital Augmentation Plan, NTB successfully mobilised Rs. 1.048 Bn. through the Rights Issue of shares just concluded. The rights were issued with an innovative scheme of warrants attached to them, which can be converted into shares in 2010 and 2011 at pre-specified prices.

The total assets of the Group rose to Rs 55.688 Bn. from Rs 47.622 Bn. last year, a growth of 17%.

NTB’s market positioning of “One Bank Many Solutions” is now being supported by a host of financial services products and services that cater to the needs of the individual, corporate or institutional clients. The Bank has 31 branches, 8 leasing centers, 38 ATMs as well as Internet Banking. Using the Nations Trust debit card, customers have the ability to access their accounts countrywide and internationally through ATMs of other banks which have the Cirrus/Maestro facility. They are also the sole issuers and acquirer for American Express cards in Sri Lanka. Considered to be one of the most customer centric financial institutions today, the Bank provides customer convenience through 365 day banking with branches being opened for extended hours compared to most other banks in the country.