The NTB Group achieved a record Profit Before Tax of Rs 10.4 billion, for the 12 months ended December 31, 2021, a growth of 38% compared to the previous year, despite the challenging operating environment experienced during the period. The Group recorded a Profit After Tax growth of 65% supported by the decrease in the corporate tax rate.
The financial position of the Group remained strong as its Tier I Capital and Total Capital Adequacy ratios as at December 31, 2021 were well above the regulatory levels at 14.77% and 17.46%, respectively. The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit was at 33% as at the reporting date.
The loan book recorded an 18% growth during the year against the private sector credit growth of 13.5%. Supporting the loan growth and economic recovery efforts, average yields on loans reduced by 260bps during the year. A net reduction in yields in the FIS portfolio also contributed to the decline in net interest income. The absence of a one-off interest reversal on moratorium loans similar to what was recognised in the previous year helped negate the decline in interest income. The improvement in the CASA ratio to 40% at end of the year, from 32% recorded in the previous year, helped partially offset the decline in interest margins during the period.
Commenting on the results and achievements, Priyantha Talwatte, CEO/Director of Nations Trust Bank stated, “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.
We remain focused on delivering our strategic agenda set for the year and enhancing digital capabilities with the ultimate intention of achieving customer convenience, cost and process efficiencies, pioneering innovation and thereby, challenging the norm to deliver an unparalleled banking experience to our customers in a new reality. With the nation-wide vaccination program successfully being rolled out, there is an expectancy of a rapid return to economic normalcy, and Nations Trust Bank is fully geared to steer ahead more responsively to the external environment by prioritizing customer requirements supported by an extremely focused and involved Nations team who has demonstrated their agility to deliver sustainable value, given the challenging environment.”