NATIONS TRUST BANK PLC VELOCITY OF VALUE
CONTINUES...
Interim Financial Statements
for the twelve months ended 31 December 2022
Company Registration Number: PQ 118
Nations Trust Bank PLC reports record financial performance, further strengthening capital adequacy and stability
- Operating Income of LKR 38.8Bn, YoY growth of 67%
- Profit Before Tax of LKR 13.4Bn, YoY growth of 29%
- Profit After Tax of LKR 7.2Bn, YoY growth of 8%
- Strong Capital Adequacy with Tier I of 14.8% and Total CAR of 16.9%
Colombo, February 23, 2023 - Nations Trust Bank PLC (NTB) continued its steady performance to close the financial year ending December 2022 with an Operating Income of LKR 38.8Bn, reflecting a solid growth of 67% year-on-year (YoY). Carefully navigating the challenging socio-economic environment, the Bank posted a Profit Before Tax of LKR 13.4Bn, a notable growth of 29% and Profit After Tax of LKR 7.2Bn, an increase of 8%, YoY, thereby reporting a record year for the Bank.
Commenting on the results, Hemantha Gunetilleke, Director & Chief Executive Officer of NTB said "We have delivered a strong full year result, building on the trend demonstrated through 2022 with a PBT of LKR 13.4Bn and a PAT of LKR 7.2Bn. These results underpin the fundamental strengths of the Bank's Liquidity, Capital Adequacy and Risk Management Framework. These strengths along with a focus on digital innovation, teamwork and adherence to prudent banking practices, ensured that we were able to consistently provide banking service excellence to our customers despite the challenging external
environment".
Interest rate movement and margin expansion during the year resulted in strong Revenue growth of 67%. Operating Expenses were carefully managed throughout the year resulting in Total Operating Expenses increasing by only 27% YoY despite the high inflationary environment.
Gains in Operating Income were negated to some extent by the sharp rise in Impairments. The Bank's impairment provisions relating to loans, advances and sovereign bonds, rose 270% YoY. Provisions were impacted by negative flows from moratorium loans and the overall deterioration in credit quality across most loan portfolios due to the weak economic environment. The Bank's exposure to foreign currency denominated security instruments issued by the Government of Sri Lanka were relatively low at 2.6% of the total assets. Appropriate impairment provisions were made by the Bank on these instruments in line with the industry, considering current economic conditions.
The Bank's overall tax expense grew by 68% during the reporting period due to higher profits, increased corporate tax rates, VAT on Financial Services and the effect of tax reversals recorded in 2021.
"We are confident that the Bank's strong capital base and healthy liquidity buffers have positioned it well to support our customers to build back from the economic downturn. The Bank is poised to build for the future through further investments in world-class digital banking infrastructure that will help fulfil the future banking needs of our customers," added Gunetilleke.
Nations Trust Bank PLC serves a diverse range of customers across Consumer, Commercial and Corporate segments through an island wide network of 96 branches. The bank is focused on digital empowerment through cutting-edge digital banking technologies, and pioneered FriMi, Sri Lanka's leading digital banking experience. Nations Trust Bank PLC is an issuer and sole acquirer of American Express Cards in Sri Lanka with market leadership in the premium segments.
NATIONS TRUST BANK PLC
INCOME STATEMENT
Gross Income
Interest Income
Less: Interest Expense
Net Interest Income
Fee and Commission Income
Less: Fee and Commission Expense
Net Fee and Commission Income
Net Gains/(Losses) from Trading
Net Fair Value Gains/(Losses) on Financial Assets at Fair Value through Profit or Loss
Net Gains/(Losses) on Derecognition of Financial Assets at Fair Value through Other Comprehensive Income
Net Other Operating Income/(Loss)
Total Operating Income
Impairment Charges/(Reversals)
Net Operating Income
Less: Expenses
Personnel Expenses
Depreciation of Property, Plant and Equipment
Depreciation of Right of Use (ROU) Assets
Amortization of Intangible Assets
Other Operating Expenses
Total Operating Expenses
Operating Profit before Taxes on Financial Services
Bank | |||
Twelve Months Ended 31 December | |||
2022 | 2021 | Change | |
Rs. '000 | Rs. '000 | (%) | |
(Audited) | (Audited) | ||
64,611,686 | 38,141,860 | 69 | |
54,308,296 | 28,657,234 | 90 | |
(25,244,769) | (14,678,428) | (72) | |
29,063,527 | 13,978,806 | 108 | |
7,531,495 | 6,433,245 | 17 | |
(943,548) | (529,462) | (78) | |
6,587,947 | 5,903,783 | 12 | |
14,233,269 | 2,472,443 | 476 | |
15,848 | 9,103 | 74 | |
28,279 | 499,932 | (94) | |
(11,505,501) | 69,903 | (16,559) | |
38,423,369 | 22,933,970 | 68 | |
13,842,229 | 3,742,158 | (270) | |
24,581,140 | 19,191,812 | 28 | |
5,956,837 | 4,587,018 | (30) | |
303,640 | 394,030 | 23 | |
477,936 | 483,961 | 1 | |
278,696 | 338,913 | 18 | |
4,521,091 | 3,312,875 | (36) | |
11,538,200 | 9,116,797 | (27) | |
13,042,940 | 10,075,015 | 29 | |
Quarter ended 31 December
2022 | 2021 | Change |
Rs. '000 | Rs. '000 | (%) |
20,152,050 | 9,991,189 | 102 |
17,435,267 | 7,604,562 | 129 |
(8,667,238) | (3,621,494) | (139) |
8,768,029 | 3,983,068 | 120 |
2,046,098 | 1,946,450 | 5 |
(284,434) | (434,271) | 35 |
1,761,664 | 1,512,179 | 16 |
571,242 | 294,075 | 94 |
(42,496) | 3,514 | (1,309) |
12,594 | (42,029) | 130 |
129,344 | 184,615 | (30) |
11,200,377 | 5,935,422 | 89 |
3,642,184 | 1,245,587 | (192) |
7,558,194 | 4,689,835 | 61 |
. | ||
2,190,727 | 1,022,526 | (114) |
68,418 | 88,847 | 23 |
118,071 | 121,600 | 3 |
13,818 | 67,533 | 80 |
1,131,023 | 522,700 | (116) |
3,522,056 | 1,823,207 | (93) |
4,036,137 | 2,866,628 | 41 |
Group | ||
Twelve Months Ended 31 December | ||
2022 | 2021 | Change |
Rs. '000 | Rs. '000 | (%) |
(Audited) | (Audited) | |
64,818,207 | 38,378,461 | 69 |
54,308,296 | 28,657,258 | 90 |
(25,007,344) | (14,579,618) | (72) |
29,300,952 | 14,077,640 | 108 |
7,738,016 | 6,669,822 | 16 |
(943,548) | (529,463) | (78) |
6,794,468 | 6,140,359 | 11 |
14,233,269 | 2,472,443 | 476 |
15,848 | 9,103 | 74 |
28,279 | 499,932 | (94) |
(11,505,501) | 69,903 | (16,559) |
38,867,315 | 23,269,380 | 67 |
13,842,229 | 3,742,158 | (270) |
25,025,086 | 19,527,222 | 28 |
5,999,378 | 4,619,680 | (30) |
345,810 | 436,260 | 21 |
387,410 | 393,435 | 2 |
278,820 | 339,037 | 18 |
4,547,387 | 3,333,492 | (36) |
11,558,805 | 9,121,904 | (27) |
13,466,281 | 10,405,318 | 29 |
Quarter ended 31 December
2022 | 2021 | Change |
Rs. '000 | Rs. '000 | (%) |
20,195,402 | 10,044,123 | 101 |
17,435,403 | 7,604,562 | 129 |
(8,579,527) | (3,594,269) | (139) |
8,855,876 | 4,010,293 | 121 |
2,089,315 | 1,999,387 | 4 |
(284,434) | (434,272) | 35 |
1,804,881 | 1,565,115 | 15 |
571,242 | 294,075 | 94 |
(42,496) | 3,514 | (1,309) |
12,594 | (42,029) | 130 |
129,344 | 184,615 | (30) |
11,331,441 | 6,015,583 | 88 |
3,642,184 | 1,245,587 | (192) |
7,689,257 | 4,769,996 | 61 |
2,213,688 | 1,033,780 | (114) |
78,974 | 99,370 | 21 |
95,439 | 98,969 | 4 |
13,849 | 67,564 | 80 |
1,143,309 | 526,381 | (117) |
3,545,259 | 1,826,064 | (94) |
4,143,998 | 2,943,932 | 41 |
Less: Value Added Tax (VAT) on Financial Services | 3,019,071 | 1,984,686 | (52) | 957,644 | 591,098 | (62) | 3,021,066 | 1,985,444 | (52) | 958,324 | 591,315 | (62) |
Profit before Income Tax | 10,023,869 | 8,090,329 | 24 |
Less: Income Tax Expense | 3,096,646 | 1,683,846 | (84) |
Profit for the Period | 6,927,223 | 6,406,483 | 8 |
Profit Attributable to: | |||
Equity Holders of the Parent | 6,927,223 | 6,406,483 | 8 |
Non-Controlling Interests | - | - | - |
Earnings Per Share | |||
21.67 | 20.04 | 8 |
3,078,493 | 2,275,530 | 35 | 10,445,215 | 8,419,874 | 24 | 3,185,674 | 2,352,617 | 35 | ||
1,199,654 | 662,397 | (81) | 3,217,170 | 1,726,345 | (86) | 1,249,010 | 673,964 | (85) | ||
1,878,839 | 1,613,133 | 16 | 7,228,045 | 6,693,529 | 8 | 1,936,664 | 1,678,653 | 15 | ||
1,878,839 | 1,613,133 | 16 | 7,228,045 | 6,693,529 | 8 | 1,936,664 | 1,678,653 | 15 | ||
- | - | - | - | - | - | - | - | - | ||
5.88 | 5.05 | 16 | 22.61 | 20.94 | 8 | 6.06 | 5.25 | 15 |
NATIONS TRUST BANK PLC
STATEMENT OF COMPREHENSIVE INCOME
Bank | Group | ||||||||||||||||
Twelve Months Ended 31 December | Quarter ended 31 December | Twelve Months Ended 31 December | Quarter ended 31 December | ||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
Rs. '000 | Rs. '000 | (%) | Rs. '000 | Rs. '000 | (%) | Rs. '000 | Rs. '000 | (%) | Rs. '000 | Rs. '000 | (%) | ||||||
(Audited) | (Audited) | (Audited) | (Audited) | ||||||||||||||
Profit for the Period | 6,927,223 | 6,406,483 | 8 | 1,878,839 | 1,613,133 | 16 | 7,228,045 | 6,693,529 | 8 | 1,936,664 | 1,678,653 | 15 | |||||
Other Comprehensive Income/(Expense) that will be | |||||||||||||||||
Reclassified to Profit or Loss in Subsequent Periods: | |||||||||||||||||
Investments in Debt Instruments at Fair Value through Other Comprehensive Income | |||||||||||||||||
Net Change in Fair Value During the Period | (3,550,913) | (1,621,935) | (119) | 420,212 | (185,505) | 327 | (3,550,913) | (1,621,935) | (119) | 420,212 | (185,505) | 327 | |||||
Transfer of fair value gains/(losses) o/a reclassification of debt instruments from fair value through other | 3,669,876 | - | 100 | - | - | - | 3,669,876 | - | 100 | - | - | - | |||||
comprehensive income to amortised cost | |||||||||||||||||
Changes in Impairment for Expected Credit Losses | 543,490 | 44,699 | 1,116 | 97,815 | 17,182 | 469 | 543,490 | 44,699 | 1,116 | 97,815 | 17,182 | 469 | |||||
Tax (Expenses) / Reversal Related to the Above | (198,736) | 378,537 | (153) | (164,074) | 40,398 | (506) | (198,736) | 378,537 | (153) | (164,074) | 40,398 | (506) | |||||
Deferred Tax Effect on Revision of Statutory Income Tax Rate | 39,743 | 36,594 | 9 | 39,743 | 16,776 | 137 | 39,743 | 36,594 | 9 | 39,743 | 16,776 | 137 | |||||
503,460 | (1,162,105) | 143 | 393,696 | (111,149) | 454 | 503,460 | (1,162,105) | 143 | 393,696 | (111,149) | 454 | ||||||
Other Comprehensive Income/(Expense) that will not | |||||||||||||||||
be Reclassified to Profit or Loss in Subsequent Periods: | |||||||||||||||||
Re-measurement of Post Employment Benefit Obligations | (72,620) | 4,350 | (1,769) | (72,620) | (60,103) | (21) | (71,475) | 7,066 | (1,112) | (71,475) | (62,088) | (15) | |||||
Changes in Revaluation Surplus | - | - | - | - | - | - | - | - | |||||||||
Tax Expenses Related to the Above | 21,786 | (1,044) | 2,187 | 21,786 | 14,425 | 51 | 21,442 | (1,451) | 1,578 | 21,442 | 14,896 | 44 | |||||
Deferred Tax Effect on Revision of Statutory Income Tax Rate | 5,063 | (3,549) | 243 | 5,063 | (2,012) | 352 | 5,063 | (3,653) | 239 | 5,063 | (2,115) | 339 | |||||
(45,771) | (243) | (18,730) | (45,770) | (47,690) | 4 | (44,970) | 1,962 | (2,392) | (44,969) | (49,307) | 9 | ||||||
Gain on Revaluation of Land & Building | 246,244 | - | 100 | 246,244 | 100 | 267,238 | 100 | 246,244 | 100 | ||||||||
Income Tax related to the above | (73,873) | - | (100) | (73,873) | (100) | (80,171) | (100) | (73,873) | (100) | ||||||||
Deferred Tax Effect on Revision of Statutory Income Tax Rate | (66,323) | 44,215 | (250) | (66,323) | 44,215 | (250) | (102,573) | 68,382 | (250) | (66,323) | 68,382 | (197) | |||||
106,048 | 44,215 | 140 | 106,049 | 44,215 | 140 | 84,494 | 68,382 | 24 | 106,049 | 68,382 | 55 | ||||||
Total items that will not be reclassified to the Statement of Profit or Loss | 60,277 | 43,972 | 37 | 60,278 | (3,475) | 1,835 | 39,524 | 70,344 | (44) | 61,080 | 19,075 | 220 | |||||
Other Comprehensive Income for the Period, Net of Tax | 563,737 | (1,118,133) | 150 | 453,974 | (114,624) | 496 | 542,984 | (1,091,760) | 150 | 454,775 | (92,074) | 594 | |||||
Total Comprehensive Income for the Period, Net of Tax | 7,490,960 | 5,288,350 | 42 | 2,332,813 | 1,498,510 | 56 | 7,771,029 | 5,601,769 | 39 | 2,391,439 | 1,586,579 | 51 | |||||
Attributable to: | |||||||||||||||||
Equity Holders of the Parent | 7,490,960 | 5,288,350 | 42 | 2,332,813 | 1,498,510 | 56 | 7,771,029 | 5,601,769 | 39 | 2,391,439 | 1,586,579 | 51 | |||||
Non-Controlling Interests | - | - | - | - | - | - | - | - | - | - | - | - |
NATIONS TRUST BANK PLC
STATEMENT OF FINANCIAL POSITION
Bank | |||
As at | 31.12.2022 | 31.12.2021 | Change |
Rs. '000 | Rs. '000 | % | |
(Audited) | (Audited) | ||
ASSETS | |||
Cash and Cash Equivalents | 58,747,889 | 13,427,451 | 338 |
Balances with Central Bank of Sri Lanka | 6,074,330 | 6,915,197 | (12) |
Derivative Financial Instruments | 102,730 | 472,864 | (78) |
Financial Assets Recognised through Profit or Loss | |||
Measured at Fair Value | 3,733,781 | 6,150,508 | (39) |
Financial Assets at Amortised Cost | |||
Loans and Advances | 241,241,061 | 247,441,428 | (3) |
Reverse Repurchase Agreements | 1,502,266 | 3,001,370 | (50) |
Debt Instruments | 59,928,294 | 26,140,298 | 129 |
Financial Assets at Fair Value through Other Comprehensive Income | 30,349,526 | 67,520,760 | (55) |
Investments in Subsidiaries | 678,710 | 678,710 | - |
Property, Plant & Equipment | 2,547,745 | 2,330,679 | 9 |
Right of Use (ROU) Assets | 1,492,460 | 1,622,825 | (8) |
Intangible Assets | 1,285,108 | 1,174,468 | 9 |
Deferred Tax Assets | 3,962,570 | 751,749 | 427 |
Other Assets | 3,376,120 | 2,013,560 | 68 |
Total Assets | 415,022,590 | 379,641,867 | 9 |
Group | ||
31.12.2022 | 31.12.2021 | Change |
Rs. '000 | Rs. '000 | % |
(Audited) | (Audited) | |
58,747,775 | 13,427,531 | 338 |
6,074,330 | 6,915,197 | (12) |
102,730 | 472,864 | (78) |
3,733,781 | 6,150,508 | (39) |
241,241,061 | 247,441,428 | (3) |
1,502,266 | 3,001,370 | (50) |
59,928,294 | 26,140,298 | 129 |
30,349,526 | 67,520,760 | (55) |
- | - | - |
3,494,975 | 3,298,248 | 6 |
1,311,693 | 1,351,245 | (3) |
1,285,721 | 1,175,204 | 9 |
3,771,802 | 610,748 | 518 |
3,400,016 | 2,046,476 | 66 |
414,943,970 | 379,551,877 | 9 |
LIABILITIES | |||
Due to Banks | 3,989,152 | 2,016,105 | 98 |
Derivative Financial Instruments | 39,481 | 165,699 | (76) |
Financial Liabilities at Amortised Cost | |||
Repurchase Agreements | 3,999,649 | 10,899,766 | (63) |
Due to Depositors | 298,909,543 | 267,991,907 | 12 |
Due to Other Borrowers | 33,740,900 | 35,601,356 | (5) |
Debt Securities Issued | 12,355,121 | 12,352,873 | 0 |
Retirement Benefit Obligations | 942,933 | 831,793 | 13 |
Current Tax Liabilities | 5,179,372 | 2,440,631 | 112 |
Other Liabilities | 11,640,212 | 8,802,901 | 32 |
Total Liabilities | 370,796,363 | 341,103,031 | 9 |
3,989,152 | 2,016,105 | 98 |
39,481 | 165,699 | (76) |
3,861,951 | 9,429,230 | (59) |
297,253,112 | 267,988,264 | 11 |
33,532,796 | 35,305,349 | (5) |
12,355,121 | 12,352,873 | 0 |
953,715 | 841,985 | 13 |
5,242,809 | 2,460,712 | 113 |
11,675,175 | 8,832,668 | 32 |
368,903,312 | 339,392,885 | 9 |
EQUITY | |||||||
Stated Capital | 10,401,432 | 9,408,135 | 11 | 10,401,432 | 9,408,135 | 11 | |
Statutory Reserve Fund | 2,228,472 | 1,882,111 | 18 | 2,228,472 | 1,882,111 | 18 | |
OCI Reserve | 56 | (503,404) | 100 | 56 | (503,404) | 100 | |
Retained Earnings | 30,650,134 | 26,911,909 | 14 | 32,026,947 | 28,072,893 | 14 | |
Revaluation Reserve | 946,133 | 840,085 | 13 | 1,383,751 | 1,299,257 | 7 | |
Total Shareholders' Equity | 44,226,227 | 38,538,836 | 15 | 46,040,658 | 40,158,992 | 15 | |
Total Equity and Liabilities | 415,022,590 | 379,641,867 | 9 | 414,943,970 | 379,551,877 | 9 | |
Contingent Liabilities and Commitments | 226,253,178 | 217,357,294 | 4 | 226,253,178 | 217,357,294 | 4 |
Memorandum Information | ||||
Number of Employees | 2,455 | 2,648 | 2,479 | 2,677 |
Number of Branches | 96 | 96 | 96 | 96 |
Number of Off-Site ATMs & CRMs | 35 | 32 | 35 | 32 |
Note: Amounts stated are net of impairment and depreciation.
CERTIFICATION :
I certify that these financial statements comply with the requirements of the Companies Act No. 07 of 2007.
Sgd.
Ajith Akmeemana
Chief Financial Officer
We, the undersigned being the Chairman, Director and Director/Chief Executive Officer of Nations Trust Bank PLC certify jointly that:
- the above financial statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka;
- the information contained in these financial statements has been extracted from the audited financial statements of the Bank and the Group.
Sgd. | Sgd. | Sgd. |
Gihan Cooray | Rachini Rajapaksa | Hemantha D Gunetilleke |
Chairman | Director | Director/Chief Executive Officer |
23 February 2023
Colombo
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Nations Trust Bank plc published this content on 23 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 05:06:01 UTC.
