The NDB Group has reported a strong performance with its Profit Attributable to Shareholders crossing the Rs 2 bn mark for the six months ended June 30 affirming the strong strategic focus maintained by the Group in generating and delivering meaningful long term value to its shareholders.

NDB Bank Chief Executive Officer Rajendra Theagarajah, said the Group is ably guided by a unique strategy which will ensure that the Group will thrive in its performance in a highly challenging and fast changing industry climate that prevails.

The Group Profit Before Income Tax recorded a 42% year-on-year growth to reach Rs 2.9 b for the first half of 2014, whilst the Group profit after tax recorded a commendable increase of 57% to reach Rs 2.1 bn. This strong growth was a result of enhanced performance across all products and services together with prudent and efficient cost management across the entire Group.

The Group's Total Operating Income of Rs 6.3 bn recorded a 17% growth on a year-on-year basis, with three constituents of operating income, namely, Net Interest Income (NII), Net Fee and Commission Income and Net Gains from Trading recording a year-on-year increase of 16%, 15% and 38% respectively.

The asset base of the Group increased by 16% compared to end December 2013, and stood at Rs 239 bn, maintaining its growth momentum ahead of the industry growth levels.

The balance sheet growth was fuelled by a marked increase in Loans and Receivables and Investments. Loans and Receivables recorded a 26% increase (of Rs 33 bn) over the last twelve months, primarily due to increase in infrastructure and working capital financing.

Loans and Receivables also recorded a 12% increase over December 2013, which is well above the industry loan growth rate.

Asset quality was sustained with a Non Performing Loans Ratio of 2.69%, which is also well below the industry average. Customer deposits ofRs 140 bn posted an increase of Rs 22 bn (a 19% growth) over the past twelve months. This was a 7% growth over 31 December 2013.

NDB's balance sheet indicates a strong liquidity position supported by customer deposits and institutional borrowings, which provide leeway for the Bank to mobilize more funds to economically important sectors such as SMEs. Capitalizing on the strong relationships maintained with international funding agencies, NDB raised a further US$75 mn in June 2014 via a syndication facilitated by the International Finance Corporation, thereby completing a total syndication of USD 200 mn. The Bank raised USD 125 mn of this syndication in March 2014.

NDB Chairman Sunil Wijesinha said the Group was geared for robust growth and assured that they will deliver meaningful value to all their stakeholders.