Re: NDB.N0000 (National Development Bank PLC)

[yellow knifeTop contributor]

                          2018

NDB has increased revenue by 21% on YoY basis.

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[yellow knifeTop contributor]

PAT of NDB has gone up by 47%.

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[PANTOMATH]

Thanks YK,
Certainly a good share in banking sector,Good DY too

[yellow knifeTop contributor]

Thanks Pantomath

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NDB has mentioned some challenges faced by the entire Banking Industry. Overcoming these obstacles is a must for the health of the entire industry.

1. Full Implementation of Basel III.

In order to improve Tier I capital NDB went for a right s issue in the last quarter of 2018 with the intention of raising 6.2 Billion.

However NDB could raise only 55% of that which is only 3.4 Billion. The Bank was interested in finding a strategic investor who could buy the remaining unsubscribed amount, yet failed.

This shows why a Government should look into Share Market. If the Share Market was performing well NDB could have easily got its rights subscribed.

2. SLFRS 9 implemented.

3. Debt Repayment Levy. Banking sector has become the highest taxed sector of the country where a prudent investor now has to re-evaluate on investing in Banking Shares. Effective tax rate is as high as 57%.

4. Swallowing a considerable portion of Earnings by Tax reduces the Banking sectors ability to augment capital through internally generated funds.

[yellow knifeTop contributor]

NDB is maintaining a higher ROE .

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[yellow knifeTop contributor]

EPS of NDB

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[yellow knifeTop contributor]

PE ratio shows how attractive some Banking shares are. It also shows how much interested the Investors are.

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[yellow knifeTop contributor]

Dividend payout is around 35% of earnings.

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[yellow knifeTop contributor]

Market price has come down despite good performance.

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[BackstageTop contributor]

Pre war rates. Thanks YK.

[ruwan326]

Financial Performance- Period ended 31 March 2019

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[The Invisible]

National Development Bank net down 29-pct

ECONOMYNEXT - Profits at Sri Lanka's National Development Bank group fell 29 percent to 781 million rupees in the June 2019 quarter from a year earlier, amid high loan losses and higher taxes, though the bank has grown its loan book.

NDB reported earnings of 4.54 rupees per share for the quarter. The group reported earnings of 6.19 rupees per share of the six months to June with total profits falling 32 percent to 1.32 billion rupees.

Interest income grew 25 percent to 13.2 billion rupees, interest expenses grew 30 percent to 9.1 billion rupees and the bank grew net interest income 15 percent to 4.0 billion rupees.

NDB group grew its loan book 5 percent to 361 billion rupees from December to June. The bond portfolio grew 15 percent to 27 billion rupees.

Loan losses grew 36 percent to 966 million rupees. Unspecified other provisions grew from 11 million rupees to 122 million rupees.

At bank level the gross non-performing loan ratio grew to 4.56 percent from 2.85 percent.

Sri Lanka is recovering from monetary instability in 2018 which saw the rupee collapse from 153 to 182 to the US dollar with the central bank printing money to keep rates down artificially just as the economy and the credit system recovered in the first quarter. There have been calls to restrain the domestic operations department of the central bank and criminalize certain actions of the unit.

Deposits grew 2 percent to 354 billion rupees.

VAT on financial services grew from 299 million rupees to 423 million rupees and there was a 222 million charge from a new debt repayment levy.

Gross assets grew 4 percent to 495 billion rupees. Net assets grew 2 percent to 39.9 billion rupees. At bank level Tier 1 capital fell from 9.17 percent to 9.02 percent. Total capital adequacy increased to 13.64 percent from 12.63 percent. (Colombo/Aug14/2019)

[Trend]

Is NDB good to buy or will they give a rights issue?

[The Invisible]

NDB Bank Sri Lanka net up on June 2020 quarter

ECONOMYNEXT – Profits at Sri Lanka’s NDB Bank net profits grew 43 percent to 1.1 billion rupees in the June 2020 quarter from a year earlier, partly helped by bond profits as interest rates fell amid higher provisions, interim accounts showed.

NDB Bank reported earnings of 5.06 rupees per share for the quarter. In the six months to June the bank reported earnings of 10.16 rupees on total profits of 2.3 billion rupees which grew 13 percent.

Net interest income grew 11 percent to 4.5 billion rupees in the quarter, with interest income up 2.2 percent to 13.5 billion rupees, interest expenses down 2 percent to 9.0 billion rupees.

About 40 percent of loan book of the banks was in moratorium, the bank said.

Loans grew 4 percent to 413 billion rupees from December to June.

Non-performing loans were 5.4 percent in June up from 4.77 percent in December.

Fee income fell to 984 million rupees from 1.1 billion rupees

Gross assets were up 6 percent to 567 billion rupees.

Net assets were up 6 percent to 4.8 billion rupees.

Tier I capital was at 9.3 percent, up from 9.18 percent at bank level (10.09 at group) higher than the 8.0 percent required. Total capital adequacy was at 12.94 percent, down from 13.43 percent (group 13.57 down from 14.20 percent) (Colombo/Aug16/2020).

[කිත්සිරි ද සිල්වාTop contributor]

Good performance and with a possible merger in the grape vine, this could be a good horse to bet on.

[The Invisible]

Yes, the current demand seen in DFCC might add some more interest as well...