Nations Trust Bank demonstrates strong performance in 3Q

Monday, 13 November 2023 00:01 - - {{hitsCtrl.values.hits}}

Operating Income of Rs. 34.2 b up 24% YoY
Profit Before Tax at Rs. 19.4 b, up 108%
Profit After Taxes at Rs. 9.4 b, up 78%
Return on Equity increased to 24.3%, Earnings Per Share improved to Rs. 29.53
Liquidity Ratio at 43.49%, Tier 1 Capital Adequacy ratio at 13.95%

Chairperson Sherin Cader

Director and Chief Executive Officer Hemantha Gunetilleke

Nations Trust Bank said it continued solid financial performance into the third quarter of 2023, with a Profit Before Tax (PBT) of Rs. 19.4 billion and a Profit After Tax (PAT) of Rs. 9.4 billion, a YoY increase of 78% for the nine months ended 30 September.

The bank recorded a 24% YoY growth in operating income for the nine months, supported by higher net interest income and fees as well as substantially lower impairment charges.

Nations Trust Bank Director and Chief Executive Officer Hemantha Gunetilleke said, “We’re pleased to report a strong result for the 9 months to 30 September 2023, highlighting steady growth across our customer segments and gains in market share. The Bank’s strengths lie in its continued focus on digital empowerment, robust risk management models and a strong capital base, in addition to healthy liquidity buffers”.

Nations Trust Bank’s financial position remained strong with Tier 1 Capital Adequacy ratio at 13.95% and Total Capital Adequacy at 15.61% against regulatory requirements of 8.5% and 12.5% respectively. The Statutory Liquid Asset Ratio was 43.49% as of 30 September, well above the regulatory requirement of 20%.

Proactive investment management, yields from fixed income securities, combined with the efficient cost of fund management, contributed to the growth in Net Interest Income (NII). The utilisation of low-cost funds generated through FX Swaps further enhanced interest margins, while fee-based income also experienced steady growth.

The Return on Equity (ROE) increased from 17.1% in December 2022 to 24.3% as of 30 September 2023. The bank’s Earnings Per Share (EPS) also improved significantly, reaching Rs. 29.53 for the 9 months ending 30 September of 2023, compared to 16.56 during the same period last year.

Nations Trust Bank PLC serves a diverse range of customers across Consumer, Commercial and Corporate segments through multi-channel customer touch points spanning both physical and digital. The Bank is focused on digital empowerment through cutting-edge digital banking technologies, and pioneered FriMi, Sri Lanka’s leading digital banking experience. Nations Trust Bank is an issuer and sole acquirer of American Express Cards in Sri Lanka with market leadership in the premium segments.