Nations Trust Bank, a prominent financial institution in Sri Lanka, has reported a significant year-over-year (YoY) growth in its third-quarter performance for 2023. The bank's Chief Executive Officer, Hemantha Gunetilleke, announced notable increases in both operating income and profit after tax (PAT). The bank achieved a 24% rise in operating income, reaching Rs.34.2 billion, and a substantial 78% surge in PAT, amounting to Rs.9.4 billion.
The Chairperson of Nations Trust Bank, Sherin Cader, attributed the impressive growth in profit before tax (PBT), which stood at Rs.19.4 billion, to strategic digital initiatives such as FriMi and effective risk management models. The bank has also demonstrated financial resilience with robust capital adequacy ratios that exceed regulatory requirements: a Tier 1 Capital Adequacy ratio at 13.95%, Total Capital Adequacy at 15.61%, and a Statutory Liquid Asset Ratio of 43.49%.
Key factors contributing to the bank's profitability include:
- Growth in net interest income (NII) due to proactive investment management and yields from fixed income securities.
- Efficient cost of fund management and strategic utilization of low-cost funds through foreign exchange swaps.
- Reduced impairment charges enhancing overall financial health.
Furthermore, the bank's return on equity (ROE) has seen an escalation to 24.3%, up from 17.1% in December 2022, reflecting the bank's efficient use of shareholder equity to generate profits. Additionally, earnings per share (EPS) have improved significantly, rising to Rs.29.53 from Rs.16.56 compared to the same period last year.
As the sole acquirer of American Express (NYSE:AXP) Cards in Sri Lanka, Nations Trust Bank continues to serve a diverse customer base across consumer, commercial, and corporate segments. The bank also reported steady growth in fee-based income, indicating a well-rounded performance across various revenue streams.
Overall, Nations Trust Bank's third-quarter results emphasize the institution's commitment to digital empowerment and sound financial management practices that have underpinned its success amid challenging market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.