National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2024 Earnings Presentation
29 slides from National Development Bank's earnings presentation, Mar 12, 2025
Slide 1: Financial Results for the financial year ended 31 December 2024
National Development Bank PLC Financial Results for the financial year ended 31 December 2024 Presentation to Investors and Analysts 12 March 2025 11:00 (+05:30 UTC) Colombo, Sri Lanka
Slide 2: Corporate Participants
Corporate Participants PRESENTED BY Kelum Edirisinghe, Director/ Chief Executive Officer Q&A Panelists Kelum Edirisinghe, Director/ Chief Executive Officer K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking and Customer Experience Alex Perera – Vice
Slide 3: Summary
FY 2024 Results Appendix Summary 1 Rs. 24.3 Bn in PBT an impressive growth of 141% 2 Rs. 12.8 in PBT excluding one-off gains (profits from underlying business), growth of 28% 3 4.34% NIM 38 bps increase over 3.96% in FY23 4 Rs. 7.8 Bn net fee and commission income, growth of 9% 5 Improvement in asse
Slide 4: Financial performance
FY 2024 Results Appendix Financial performance Rs. Mn 2024 2023 ∆ Rs. ∆% Gross income 99,383 132,326 (32,943) (25) Total operating income 45,508 44,893 615 1 YoY PBT movement in Rs. Mn Impairment charges/ (reversal) (9,977) 21,144 (31,121) (147) Impact of the debt restructuring 14,344 - 14,344 100 N
Slide 5: NII & NIM
FY 2024 Results Appendix NII & NIM NIM Rs. Mn 2024 2023 ∆ Rs. ∆% 4.34% Interest income 88,060 119,373 (31,313) (26) 4.00% 3.96% 3.07% 3.25% Interest expenses 53,849 87,425 (33,577) (38) NII 34,211 31,947 2,264 7 • Commendable NII performance in a low interest rate environment and where loan book gro
Slide 6: Non-fund based income (NFBI)
FY 2024 Results Appendix Non-fund based income (NFBI) Rs. Mn 2024 2023 ∆ Rs. ∆% Total operating income composition Net fee and commission income 7,797 7,158 640 9 (NFCI) 2024 2023 Net gain from trading (NGT) 1,041 2,906 (1,864) (64) Net gain from financial assets at (141) 182 (324) (178) fair value
Slide 7: Credit quality and impairment
FY 2024 Results Appendix Credit quality and impairment Credit quality movement 10. 00 9.47 9.43 9.63 60.0 0 Rs. Mn 2024 2023 ∆ Rs. ∆% 9.08 8.75 Total impairment on the loan book – Rs. Mn 13,285 15,959 2,674 17 8.58 54.48 50.0 0 8.0 0 8.27 Credit portfolio quality – As at 2024 2023 ∆ 7.68 49.40 Stage
Slide 8: Operating expenses
FY 2024 Results Appendix Operating expenses Rs. Mn 2024 2023 ∆ Rs. ∆% YoY movement in Rs. Mn Personnel expenses 9,055 6,633 2,422 37 23% Depreciation and amortisation 1,091 985 106 11 Other expenses 6,653 6,036 617 10 Total operating expenses 16,799 13,654 3,145 23 Cost to income ratio (%) 36.91 30.
Slide 9: Taxes and profitability
FY 2024 Results Appendix Taxes and profitability Profitability and Effective tax Rate (ETR) 30,0 00 70. 00 Rs. Mn 2024 2023 ∆ Rs. ∆% 24,343 60. 00 25,0 00 62.90 PBT 24,343 10,096 14,247 141 Tax on financial services 5,524 2,750 2,774 101 20,0 00 50. 00 Income tax 9,789 1,976 7,813 395 46.80 40. 00 P
Slide 10: Impact of the ISB re-structuring
FY 2024 Results Appendix Impact of the ISB re-structuring Rs. Mn 14,344 Impact of the debt restructuring including 10,749 Day one loss on new instruments 3,595 Loss on haircut from previously held ISBs Reversal of impairment on investments 23,707 Pre-tax profit if this one-off gain was excluded 12,8
Slide 11: Customer loans and deposits
FY 2024 Results Appendix Customer loans and deposits Movement in gross loan book in Rs. Bn Rs. Bn – As at end 2024 2023 ∆ Rs. ∆% 3% Gross loans 510 496 14 3 Customer deposits 632 616 16 3 Other balance sheet items Investments 268 234 35 15 Borrowings 68 77 -9 -12 Equity 78 70 8 11 • Dynamism and str
Slide 12: Capital
FY 2024 Results Appendix Capital Capital progression – Capital in Rs. Bn, ratios in % 160.0 25 Rs. Bn 2024 2023 ∆ Rs. ∆% 140.0 Common Equity Tier 1 (CET1) capital 62.1 54.7 7.40 14 20 Tier 1 capital 62.1 54.7 7.40 14 120.0 19.09 Total capital 86.7 74.5 12.20 16 RWA 453.9 468.6 (14.7) (3) 100.0 15.42
Slide 13: Dividends
FY 2024 Results Appendix Dividends Dividends declared Dividends – Total dividends paid and related ratios Per share Rs. Total dividend 2,500 50 8.00 7.06 7.70 Cash dividend 5.00 7.81 45 7.98 Scrip dividend* 3.00 2,000 40 Paid out of 36.88 Out of dividend received 0.30 37.19 35 Out of current year’s
Slide 14: Key ratios
FY 2024 Results Appendix Key ratios Investor ratios 2024 2023 ∆ Liquidity trend Closing Price per Share - Rs. 113.25 64.90 48.35 EPS - Rs. (Annualised) 21.73 12.92 8.81 ROE (%) 12.22 8.03 4.18ppt 308.26 ROA (%)Pre-tax 3.09 1.25 1.84ppt 232.68 228.58 Book Value per Share - Rs. 186.91 175.60 11.31 5.2
Slide 15: Awards
FY 2024 Results Appendix Awards Euromoney Awards for Excellence 2024 • Sri Lanka's Best Bank for Corporates • Sri Lanka's Best Bank for Diversity and Inclusion Asian Banking and Finance Magazine (Singapore) Awards 2024 Corporate & Investment Banking Awards • Syndicated Loan of the Year - Sri Lanka R
Slide 16: Way forward: Building on Unlocking Prosperity
Way forward Building on Unlocking Prosperity Geared for growth 1 Enhancing shareholder value 2 Continued efforts in improving loan book quality and reducing credit cost 3 16
Slide 17: Q&A
Q&A
Slide 18: Appendix
APPENDIX
Slide 19: Financial performance summary
4Q2024Results Appendix Financial performance summary Income and profitability - Rs. Mn - for the quarter of 4Q23 1Q24 2Q24 3Q24 4Q24 ∆% vs 4Q23 Gross income 29,451 26,074 26,356 21,750 25,204 (14) NII 7,543 8,076 8,420 7,892 9,823 30 NFBI 3,734 2,005 4,438 1,695 3,159 (15) Total operating income 11,
Slide 20: Banking NII
4Q2024Results Appendix Banking NII NII & NIM 4Q23 1Q 24 2Q24 3Q24 4Q24 ∆% vs 4Q23 NII - Rs. Mn (for the quarter) 7,543 8,076 8,420 7,892 9,823 30 NIM - % (as at end of the quarters) 3.96 4.23 4.26 4.21 4.34 38bps Average interest earning assets - Rs. Bn (as at end of the quarter) 795 786 783 776 798
Slide 21: Impairment
4Q2024Results Appendix Impairment Impairment and related ratios – For the quarter of 4Q23 1Q24 2Q24 3Q24 4Q24 ∆% vs 4Q23 Impairment on loans / (reversal) (Rs. Mn) 2,398 3,107 4,009 2,572 3,598 50 Impairment on investments / (reversal) (Rs. Mn) 4,820 1,250 32 80 (25,055) (620) Impaired Loans (Stage 3
Slide 22: Expenses
4Q2024Results Appendix Expenses Expenses - Rs. Mn - for the quarter of 4Q23 1Q24 2Q24 3Q24 4Q24 ∆% vs 4Q23 Personnel Expenses 1,548 2,078 2,251 2,251 2,461 59 Depreciation and amortization 248 258 265 284 283 14 Other Expenses 1,715 1,560 1,584 1,547 1,977 15 Total operating expenses 3,510 3,896 4,1
Slide 23: Balance Sheet
4Q2024Results Appendix Balance Sheet Rs. Bn - As at end 4Q23 1Q24 2Q24 3Q24 4Q24 ∆% vs 4Q23 Total assets 779.9 757.4 764.5 763.2 795.7 2.0 Gross loans 496.1 485.6 504.9 501.1 509.8 2.8 Net loans 452.7 439.6 459.0 453.9 460.7 1.8 Customer deposits 615.6 614.4 619.2 611.5 631.7 2.6 Return on assets (b
Slide 24: Capital and Liquidity
4Q2024Results Appendix Capital Rs. Bn - As at end 4Q23 1Q24 2Q24 3Q24 4Q24 ∆% vs 4Q23 Common Equity Tier 1 (CET1) Capital 54.7 52.8 50.9 50.1 62.1 13.5 Tier 1 Capital 54.7 52.8 50.9 50.1 62.1 13.5 Total Capital 74.5 70.9 68.1 71.1 86.7 16.4 Liquidity % - As at end 4Q23 1Q24 2Q24 3Q24 4Q24 ∆Q23 ppt L
Slide 25: ESG performance
4Q2024Results Appendix ESG performance Environmental Social Governance GHG emissions 2024 tCO2e Comprehensive ESMS system embedding social and 33% female representation at Board level - 5,067 (2023: 5,510) environmental consciousness to lending decisions 8.04% YoY reduction in GHG emissions in 2024
Slide 26: Glossary
4Q2024Results Appendix Glossary AWDR Average weighted deposits rate NGFAFVP&L Net gain/(loss) from financial assets at fair value through profit or loss AWPR Average weighted prime lending rate NGT Net gains from trading bps Basis points NII Net interest income CAR Capital adequacy ratio NIM Net int
Slide 27: Analyst support
4Q2024Results Appendix Analyst support Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries and clarifications Email investor.relations@ndbbank.com Web www.ndbbank.com/Inves
Slide 28: Forward looking statements
4Q2024Results Appendix 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. The information contained in this document should be considered in the context of the
Slide 29: NDB Bank
ZANDB bank
National Development Bank — FY2024 Earnings Presentation on 6ix