National Development Bank Plc · CSELK:NDB.N0000

National Development Bank — Q1 2022 Earnings Presentation

16 slides from National Development Bank's earnings presentation, 2022

1. Slide 1: Investor Update - Q1 2022

   Investor Update - Q1 2022 National Development Bank PLC NDB.N0000 National Long-term Rating: A+ (lka) Outlook: RWN, Fitch Ratings Lanka Limited

2. Slide 2: Forward Looking Statements

   FORWARD LOOKING STATEMENTS This document has been prepared by National Development Bank PLC [“NDB”, “Bank” or the “Group”] solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos

3. Slide 3: Corporate Participants

   Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice President – Finance Niran Mahawatte – Vi

4. Slide 4: Agenda

   AGENDA PART I - CORPORATE PROFILE PART II – OPERATING ENVIRONMENT PART III – FINANCIAL PERFORMANCE – Q1 2022 PART V – WAY FORWARD PART VI – Q&A

5. Slide 5: Part I - Corporate Profile

   PART I - CORPORATE PROFILE Our Vision Our Values Our Legacy Our Team Our Profile The driving Integrity Over 40 years Over 3,000 Credit rating force for a Creativity of service to NDBers across affirmed at financially Excellence the nation the NDB A+ empowered Sincerity Group Outlook: Sri Lanka Accou

6. Slide 6: Part II - Operating Environment

   PART II – OPERATING ENVIRONMENT Context to operating landscape in Q1 2022 • Tightening monetary policy, 150 bps increase in SDFR, SLFR and Bank Rate in Q1 2022 • Further depletion of foreign exchange reserves • LKR 200 peg for USD removed by CBSL, causing sharp rupee depreciation • Restrictions on i

7. Slide 7: Part III - Financial Performance Overview

   PART III – FINANCIAL PERFORMANCE OVERVIEW Balance Sheet Total assets - LKR 765 Bn - YTD – 9% Gross loans and receivables - LKR 580 Bn – YTD – 10% Total deposits – LKR 600 Bn – YTD – 9% Income/ Profitability Total operating income – LKR 10 Bn – YoY - 22% Pre-tax profitability – LKR 962 Mn - YoY – (72

8. Slide 8: Income

   PART III – FINANCIAL PERFORMANCE INCOME LKR Mn Q1 2022 Q1 2021 Variance % Gross Income 19,162 15,720 3,442 22 Interest Income 15,366 12,667 2,699 21 Interest Expense 9,159 7,536 1,623 22 Net Interest Income 6,207 5,129 1,078 21 LKR Mn Q1 2022 Q1 2021 Variance % Net fee & comm income 1,717 1,325 392

9. Slide 9: Impairment Charges

   PART III – FINANCIAL PERFORMANCE IMPAIRMENT CHARGES LKR Mn Q1 2022 Q1 2021 Variance % Impairment charges 6,367 2,183 4,184 192 Impairment on loans • A reflection of escalated stress levels faced by the customers and significant impact arising from the rupee depreciation • Comprised impairment charge

10. Slide 10: Operating Expenses and Profitability

    PART III – FINANCIAL PERFORMANCE OPERATING EXPENSES Cost composition % LKR Mn Q1 2022 Q1 2021 % Q1 2022 Q1 2021 Personnel expenses 1,340 1,378 (3) 50 55 Depreciation & amortization 193 221 (13) 7 9 Other expenses 1,133 924 23 43 36 Total operating expenses 2,666 2,524 6 Cost management strategies, v

11. Slide 11: Balance Sheet

    PART III – FINANCIAL PERFORMANCE BALANCE SHEET LKR Bn Q1 2022 FY 2021 YTD LKR YTD % Total assets 765 704 60 9 Investments 147 146 1 0.4 Gross loans 580 526 54 10 Total deposits 600 552 48 9 Borrowings 84 79 5 6 Total equity 55 59 (4) (7) • The increase in the Total Assets includes the exchange rate

12. Slide 12: Investor Ratios

    PART III – FINANCIAL PERFORMANCE INVESTOR RATIOS Bank Group Q1 2022 FY 2021 Q1 2022 FY 2021 Closing price per share [LKR] 55.70 68.90 - - EPS [LKR] [Annualized] 12.48 20.68 11.72 22.44 ROE [%] [Annualized] 7.80 12.27 6.87 12.47 ROA [%] [Pre-tax] [Annualized] 0.96 1.55 0.55 1.67 Book value per Share

13. Slide 13: Capital & Liquidity Position

    PART III – FINANCIAL PERFORMANCE CAPITAL & LIQUIDITY POSITION Bank Group BASEL III Q1 2022 FY 2021 Q1 2022 FY 2021 Common Equity Tier 1 Capital Ratio % [Minimum Requirement - 8.69 10.01 9.19 10.53 6.5%] Tier 1 Capital Ratio % [Minimum Requirement – 8.0%] 8.69 10.01 9.19 10.53 Total Capital Ratio % [

14. Slide 14: Part V - Way Forward

    PART V – WAY FORWARD • Challenged conditions ahead • Inflationary pressure likely to continue, before stabilizing with the effects of measures taken by CBSL • Cautious business expansions to match the prevailing economic conditions • Priorities will be on • preserving asset quality • managing liquid

15. Slide 15: Part VI - Q&A

    PART VI – Q&A Please use the chat option in the MS Teams window to pose your questions to the CEO and Panel. Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer

16. Slide 16: NDB Investor Relations

    ANALYSTS SUPPORT  Clearly defined Quarterly Results Calendar released at the end of each quarter  Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written NDB Investor Relations transcript forms  Dedicated communication channels made available for any queries

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