Equity Analysis /
Sri Lanka

National Development Bank: NATIONAL DEVELOPMENT BANK: Strong FY17 profits on better asset quality and NIMs

    Rohit Kumar
    Rohit Kumar

    Global Financials/Thematics

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    Tellimer Research
    2 February 2018
    Published byTellimer Research
    Net profit clocked in at LKR3.7bn, up 38%yoy. This was higher than both our (LKR2.5bn) and Bloomberg consensus (LKR2.9bn). The variation came largely from lower than expected impairment charges on better asset quality (NPL ratio 1.83% compared to 2.43% in 2016). Net interest margins and investment income were also above our forecasts.