NTB delivers strong 1Q, further strengthening capital adequacy and liquidity

Nations Trust Bank PLC reported a strong performance in the first3 months of 2023 posting a Profit Before Tax (PBT) of Rs.5.8 billion, up 124 percent year-on-year (YoY) and a Profit After Tax (PAT) of Rs.2.8 billion, up 77 percent YoY, supported by a 52 percent growth in Operating Income. 

Commenting on the results, Hemantha Gunetilleke, Director and Chief Executive Officer of Nations Trust Bank said, “The bank recorded a strong first quarter, highlighting steady growth across our customer segments.  The Bank’s strong capital base, healthy liquidity buffers, robust risk management models and focus on digital empowerment are the fundamental strengths that continue to drive the bank’s performance”.

Underpinning the bank’s financial performance is its strong capital base with Tier I Capital at 16.26 percent and Total Capital Adequacy Ratio at 18.25 percent, which are well above the regulatory requirement of 8.5 percent and 12.5 percent respectively. 
The bank also maintained strong liquidity buffers with a Liquidity Ratio of 41 percent against the regulatory requirement of 20 percent. 

The Bank’s Return on Equity (ROE) rose to a new high of 25.7 percent in the first quarter, significantly higher than the 17.1 percent during the same period last year. Accordingly, Earnings Per Share rose to Rs. 8.74 compared to Rs. 4.93 during the same period last year.
In the first 3 months of 2023, total taxpaid by the bank increased by 194 percent to Rs.3 billion, in line with the increase in tax rates compared to previous year coupled with higher profitability.