Nations Trust Continues Its Steady Performance
The Bank closed the first 6 months ending 30th June 2015 with a post-tax profit of Rs.1,257Mn a growth of 9% over the corresponding period. The results for the quarter were significantly better with post tax profits recording a commendable growth of 26%. Operating margins improved during the first 6 months as core revenue recorded a faster rate of growth than operating expenses. However, the improved operating margins did not translate to a similar bottom line growth owning to higher impairment charges. Loans and advances recorded a steady growth of 5% for the first 6 months amidst high market liquidity and intense price competition.
Net interest income recorded a growth of 8% over the previous period with NIMs narrowing marginally. The drop in interest expenses of 20% outweighed the drop in interest income of 6% thereby improving NII. The challenges present in the current low interest rate operating environment was somewhat mitigated by timely re-pricing of assets and liabilities. Portfolios such as Corporate and Leasing in particular, felt the pinch of declining yields and narrowing NIMs. The Bank continued its push for growth in low cost deposits which recorded a 6% growth with CASA improving to 31% of deposits.