28 February 2022 08:44 am Views - 172
Nations Trust Bank PLC (NTB) reported robust top and bottom line performances in the three months to December but the growth in new loans slowed significantly in the final three months but remains upbeat of the 2022 prospects for growth in selected industry sectors.
The bottom line marked a robust 77 percent growth, as the bank benefitted from the faster decline in interest expense, well-contained impairments and annual growth in loans.
The bank’s share shed 60 cents or 1.11 percent yesterday to end at Rs.53.40 and the bank filed its interim report after hours.
The bank reported a net interest income of Rs.4.01 billion for the quarter, up 40 percent from the corresponding period in 2020, as the interest income grew while the interest expense fell.
However, the annual performance showed that the fall in the interest expense outstripped the fall in the interest income for the year, a trend which was noticeable across
the industry.
The bank reported a net interest margin of 3.85 percent, from 4.07 percent at the beginning of the year.
For the full year, the bank reported a net interest income of Rs.14.08 billion, up 3 percent and reported annual earnings per share or Rs.22.20 a share or Rs.6.69 billion, compared to Rs.13.45 a share or Rs.4.05 billion, up 65 percent.
The bank declared a scrip dividend of Rs.3.50 a share in respect of the full-year profits.
During the year the bank gave loans worth of Rs.39.5 billion, translating to an 18 percent growth but in the final three months its new loans grew by only Rs.0.8 billion, compared to Rs.11.9 billion in the September quarter.
However, the company remains upbeat of the future prospects in select industries.
“The bank however adopted a selective expansion strategy, pursuing growth opportunities in sectors such as exports and local manufacturing, which are aligned to the national development agenda while recording growth in the renewable energy and agricultural sectors,” the bank said in an earnings release.
“We are committed to pursue growth opportunities across selected industry sectors by offering holistic value propositions, which include advisory and capacity building across product verticals with ongoing focus on strengthening employee capabilities,” CEO Priyantha Talwatte said.
The bank this week announced the resignation of Talwatte, effective from April 3.
The bank meanwhile improved its asset quality substantially during the year with the gross non-performing loans ratio at 4.90 percent at the end of the year, compared to 7.18 percent at the start of the year.
The bank also contained its improvements against loans, advances and other financial assets during the quarter to Rs.1.25 billion, compared to Rs.1.18 billion in the corresponding period in 2020.
The full-year impairments also rose by 3 percent to Rs.3.74 billion.
John Keells Holdings PLC together with Mackinnons Keells Limited holds 29.48 percent in NTB.