Despite increased impairments on loans and expected losses on Sovereign Debt Instruments, the Bank recorded a PBT of LKR 4.6Bn and a PAT of LKR 2.7Bn for the 6 months ending 30 June 2022.
Commenting on 1H2022 results, Hemantha D Gunetilleke, Director & Chief Executive Officer, stated,
“Considering the challenging economic environment, our primary objective was to ensure we provide uninterrupted banking and service excellence to our customers across our Branch network.
Our advanced digital banking solutions have proved to be extremely useful in our customer reach with digital transactions reaching 89% of all banking transactions.”
During 1H22, the Bank has also focussed on identifying and managing emerging risks while delivering its strategic objectives set out for the year.
Nations Trust Bank also strengthened the deposit franchise to ensure the Bank remained highly liquid in terms of both LKR and Foreign Currency.
The 1H22 results demonstrate a steady financial performance, sound credit quality and strong Capital Adequacy Ratios of Tier I Capital at 12.24% and Total Capital Adequacy at 14.58%, well above regulatory requirements.
Taking the external economic environment into consideration, Nations Trust Bank has increased impairment provisions on loans, advances and Sovereign Debt instruments, resulting in a 416% YoY increase in impairments.
The Bank has also undertaken stringent cost management initiatives resulting in Cost/Income dropping from 42% to 31% YoY, despite external inflationary pressure.
“With PBT at LKR4.6Bn and PAT at LKR 2.7Bn at the end of 1H22, the Bank is continuing to strengthen reserves and Capital.
Overall, we are very confident of overcoming the present external challenges and continuing to support the banking needs of our customers as they build for the future,” added Mr. 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.
Photo Caption Left to Right Gihan Cooray Chairman Nations Trust Bank PLC and HemanthaGunetilleke Director / Chief Executive Officer Nations Trust Bank PLC