The Nations Trust Bank reported post-tax profits of Rs 1,170 million for the first 9 months of the year, up 38% over the corresponding period in 2010.
Meanwhile, pre-tax profits also exhibited growth from Rs 2,020 million to Rs 2,127 million, representing an increase of 5%.
Group net interest income was below the previous year due to narrowing margins which was anticipated for the current year and visible across the industry. Its impact, however, was mitigated by the sustained growth in business volumes especially in the second and third quarters, timely re-pricing of deposits and a shift in the deposit mix towards low cost funds. Non-funds based income from all core lines of business including credit cards, trade service and treasury service businesses recorded good growth against the previous year.
Impact of the reduction in corporate and personal taxation was reflected in increased import and export business volumes and consumer spending together with increased tourist arrivals bolstered these growth levels.
Trade finance volumes, both on imports and exports picked up significantly compared to the previous year with the resultant income increasing by 28%.
Foreign exchange income too showed significant growth despite the relatively stable exchange rate that prevailed during the period.
During the period, group operating expenses recorded an increase of 5% over the corresponding period in 2010. The increase is in line with the expansion drive initiated in the latter part of 2010 where investments were made in people, premises and systems to support the growth prospects and strengthen risk management.
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