NSB seen as prospering in the pandemic, registering remarkable financial feats

Generating a record-breaking profit for three quarters in a straight NSB records sensational performance beating all the odds during a pandemic. Its highest ever profit for a period of nine months with a Profit Before Tax (PBT) of Rs. 20.3Bn and a Profit After Tax (PAT) of Rs.15.6Bn, National Savings Bank (NSB) shows its corvid resistance, strength and continuous financial resilience.

Against the backdrop of COVID-19 impact on the economic activities, the PBT for the first nine months of 2021 was Rs. 20.3Bn, which marks an increase of 170.6% from Rs. 7.5Bn recorded in the same period last year, while the PAT was Rs. 15.6Bn, with an increase of 258.6% from Rs. 4.4Bn in 2020.

Gross Income of the Bank grew by 5.8% to Rs. 99.2 Bn during the nine months of the year from Rs. 93.7Bn recorded in the corresponding period, last year. During the period under review, the interest income has increased by 6.8% to reach Rs. 96.9Bn, while the interest expense has decreased by 15.7% to Rs. 56.7Bn due to the prevailing lower interest rate regime which leads to lower interest expenses for the deposits as well as borrowings despite the substantial growth in the deposit base during the nine months. The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII) to surge by 71.6% to Rs. 40.1Bn against Rs. 23.4Bn stood during the same period last year. Consequently, Net Interest Margin (NIM) clocked in 3.68% at the end of nine months of 2021, higher against the 2.56% as at the same period last year.

Net Fee and commission income grew by 46.1% to Rs. 2Bn from Rs. 1.4Bn mainly driven by the increase in fee and commission income due to conversion/renewal of the existing loans to reduced interest rates as well as increased foreign remittances and coupled with fees generated through digital platforms to where the customers shifted under social distancing and health guidelines. The increase both in NII and Non-Interest Income led the total Operating Income to record a rise of 60.6% to Rs. 42.3Bn as at the end of 30th September 2021. Operating expenses during the period of nine months of 2021, rose by 21.9% to Rs. 14.6Bn compared to the corresponding period of the previous year, which is mainly attributable to the increased personnel expenses owing to the provisions made for the Collective Agreement due in 2021. Meanwhile, the Bank’s cost to income ratio decreased to 34.7% at the end of the third quarter of 2021 compared to 45.7% reported in the third quarter 2020. (NSB)