Nations Trust Bank Group demonstrated strong resilience amidst external challenges, to record a profit of LKR 3.71 billion, a marginal increase over the previous year. Total Operating Income grew by 6% to LKR 22.5 billion.
Subdued economic conditions which prevailed in the country affected many key economic sectors impacting the financial performance of businesses leading to low credit growth and higher non-performing loans. The Easter Sunday terrorist attacks and the election momentum further exerted pressure on credit growth in the industry.
Commenting on the results and achievements, Renuka Fernando, CEO/Executive Director stated “Despite the headwinds present in the operating environment, our fourth quarter witnessed an improved performance over the previous quarters of 2019, which is encouraging. With a cautious approach in growing the assets book, we remain committed to delivering our strategic agenda set at the beginning of the year to strengthen our digital capabilities, with the ultimate intention of achieving cost efficiencies, pioneering innovation and thereby challenging the norm to deliver an unparalleled banking experience to our customers”.
Amidst moderation in credit growth, the Group pre-tax profits recorded a 9% increase over the previous period whilst post-tax profits dropped to the previous year level largely due to the full impact of the Debt Repayment Levy in 2019. The Bank’s post-tax profits recorded a drop of 8% due to the inter-company dividend income recorded in the corresponding period of 2018.