Nations Trust Bank posts PAT of Rs. 5.2 Bn.

Nations Trust Bank PLC reported a strong third quarter with YTD Operating Income of LKR 27 Bn, up 62% year-on-year (YoY). Despite the volatile environment the Bank recorded Profit Before Tax of LKR 9.3 Bn, a growth of 25% YoY and PAT of LKR 5.2 Bn, up 6% YoY.

Director and Chief Executive Officer, Hemantha D. Gunetilleke, said, “We have delivered another strong quarter continuing the trend demonstrated in the first half of the year. The results underpin the fundamental strengths of Bank’s Liquidity, Capital Adequacy and Risk Management framework. These fundamental strengths have ensured that we are able to consistently provide banking service excellence to our customers despite the challenging external environment.”

With higher earnings during the quarter, Earnings Per Share continued to improve throughout the year and stood at LKR 17.55 as of 30thSeptember 2022. The Return on Equity (ROE) as at Q3 2022 was 17.26% compared to 18.31% last year. The negative economic environment resulted in impairment provisions on loans, advances guarantees, and commitments increasing 266%, weighing down returns. Uncertainties in the operating environment and negative flows from moratorium loans led to higher provisions, while Sri Lanka’s sovereign rating downgrade announced earlier this year also contributed to increased provisions despite a relatively lower ISB and SLDB holding.

As a result of the revised VAT rates on Financial Services, higher profits and tax reversals in the previous year, Nations Trust Bank’s overall tax expenses grew by 65% during the reporting period.

The Bank’s overall financial position in Q3 remained strong with comfortable capital buffers with a Tier I Capital ratio of 12.59% and Total Capital Adequacy ratio of 14.85%.