Nations Trust Bank PLC (NTB) reported strong earnings for the quarter ended on June 30, 2023 (2Q23) amid a solid core banking performance and sharp reduction in impairment charges.The banking group reported earnings of Rs.10.41 per share or Rs.3.32 billion for the quarter under review, compared to earnings of Rs.3.51 per share or Rs.1.12 billion reported for the corresponding period of the previous year.
For the first half of 2023 (1H23), the earnings rose 127 percent year-on-year (YoY) to Rs.6.1 billion.
The banking group reported a net interest income of Rs.8.81 billion for the quarter under review, up 28 percent YoY.
The net fee and commission income fell 3 percent YoY to Rs.1.56 billion.
The banking group reported a net trading loss of Rs.1.37 billion for the quarter, against a Rs.3.6 billion gain in the corresponding period, last year, amid currency fluctuations.
The impairment charges for the quarter fell 81 percent YoY to Rs.854.6 million and for the first half, such fell 56 percent YoY to Rs.2.9 billion.
“During 1H23, the loan impairment charges reduced by 56 percent, reflecting the bank’s dedication to prudent risk management practices and due to the absence of high impairment charges booked in the previous year in relation to foreign currency-denominated government securities,” NTB said in a statement.
During the first half, NTB’s loan book contracted by 2 percent to Rs.236.6 billion.
The banking group’s total assets as at June 30, 2023 stood at Rs.432.1 billion, up 4 percent from end-2022.
NTB’s state 3 loan ratio as at June 30, 2023 stood at 3.36 percent, against 2.56 percent at end-2022, indicating a slight deterioration in the asset quality.
The deposit base reported a marginal one percent growth to Rs.301.5 billion.
NTB has a strong capital position, with Tier I capital at 15.35 percent and total capital adequacy ratio at 17.17 percent, well above the regulatory requirement of 8.5 percent and 12.5 percent, respectively.
John Keells Group owns nearly a 29.5 percent stake in NTB.
