Sri Lanka *market update* NSB PAT up 24-pct to Rs. 4.78bn, LB Fin declares dividend of Rs.7.50

LB Finance PLC declared a first and final dividend of Rs. 7.50 per share (par value of Rs 5.00) to the shareholders for the financial year 2015/16. This is an increase of 50% from the previous year, with a total dividend declaration exceeding Rs. 1 Billion. This is the highest dividend paid in the company’s history and stands as a testament to the company’s attitude towards providing the highest possible return to the shareholder.

(PRESS RELEASE) – The National Savings Bank’s (NSB) Profit After Tax (PAT) for the first half stood at Rs. 4.78 billion up from Rs. 3.86 billion during the same period last year. This 24% increase is most noteworthy considering several challenges the Bank had to face during this period under review. These challenges included a weak Equities market environment and mark to market losses on account of increases in interest rates on investments in Government securities. Total assets of the Bank reached Rs. 875 Billion fueled by a satisfactory growth in both retail and corporate lending. The total lending portfolio growth of 10.6% for the first half of 2016 was comparable with the previous year. In another positive development the Bank improved its asset quality considerably with a decrease in NPL ratio to 2% by June 2016 from 3.5% reported end last year. Lower impairment provisioning assisted in enhancing profitability during this first half of the year.Net interest margins declined marginally on account of changes to deposit mix, resulting in a higher cost of funds.The Bank’s Tier 1 capital adequacy ratio stood at 15.94% while the total capital adequacy for the reviewed quarter was 14.97%. These ratios however, remain well above the regulatory standards for well capitalized banks. Liquidity ratio of the Bank stood at 75.19% by the end of June 2016, which is well above the regulatory requirement of 20%. By the end of June 2016, the branch network of the Bank reached to 250 branches and the Bank has added 5 new branches during the period under review. AAA Rating of the Bank was reaffirmed for the 14th consecutive year by the Fitch Ratings Lanka. NSB is the only local bank to receive AAA rating from Fitch Ratings and maintain the same for 14 years.