NSB recorded a profit before tax of Rs.2.7 billion for 1H 2014 up by 206% from Rs.0.9 billion recorded in the corresponding period last year and the net profit recorded an increase of 184% to Rs.1.8 billion from Rs.642 million recorded in the same period last year.
The Bank reached a new milestone with half year interest income crossing the Rs.35 billion mark for the first time. The Bank delivered a significantly improved financial performance in the first half of 2014 with improved margins and showing a notable growth in fee based income and trading gains. This broad-based performance enabled the Bank to continue its growth.
Bank mobilized Rs.23.7 billion deposits during the first six months of the year recording a growth of 5% which is in par with the industry growth and the deposit base of the Bank stood at Rs.522.4 billion as of June 30, 2014.
Total assets grew by 4% to Rs. 680.7 billion as of June 30, 2014 underpinned by the growth of investments. Held-to-Maturity financial assets which mainly consist of Treasury Bonds, grew by 5.5% to reach Rs. 456.3 billion. Held- for-Trading portfolio also increased by 4% to Rs.14.3 billion by the end of June, which was mainly due to the increase in trading government securities portfolio to explore trading opportunities in declining market interest rates scenario. Loans and advances to customers recorded a favourable growth of 2.5% as against the growth of 1.4% during the 1st half of 2013 and also compared with the movements in the industry during the first six months of 2014. The lower growth of loans and advances was attributable to the decreasing value of pawning portfolio.
Interest income increased by Rs.6 billion to Rs.36 billion recording a growth of 20% while interest expenses increased only by 5% to Rs.27 billion in 1H 2014 from Rs.26 billion recorded in the same period last year. Higher growth of interest income and comparatively lower increase in interest cost contributed to increase net interest income by 116% to Rs.8.7 billion in 1H 2014 from Rs.4.0 billion in 1H 2013. This resulted in improving the net interest margin to 2.60% by the end of June 2014 from 1.67% recorded at the end of 2013.
Bank's capital strength was reflected in ratios that were well above the regulatory standards for well capitalized banks, with a Tier 1 ratio of 17.8%, and total capital adequacy ratio of 16.31% at June 30, 2014. Liquidity ratio of the Bank stood at 89.5% at June 30, 2014 which is well above the regulatory requirement of 20%.
The Group's post tax profit increased by 155% to Rs. 1.9 billion in 1H 2014 from Rs. 753 million in 1H 2013.
