National Savings Bank (NSB) recorded its highest ever profit for the year 2021 with a Profit Before Tax (PBT) of Rs 28.4 billion which marks an increase of 81.4% from Rs 15.6 billion recorded in the same period last year, while the PAT was Rs 22.1Bn, with an increase of 118.8% from Rs 10.1Bn in 2020, Bank sources said. Gross Income of the Bank grew by 5.8% to Rs 134.9 billion during the year from Rs 127.5 billion recorded in the corresponding period, last year.
During the period under review, the interest income has increased by 7.3% to reach Rs 131.4 billion, while the interest expense has decreased by 12.3% to Rs 76.8 billion 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 period considered.
The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII) to surge by 56.6% to Rs 54.6 billion against Rs 34.9 billion stood during the same period last year. Consequently, Net Interest Margin (NIM) clocked in 3.71% at the end of 2021 recording the highest during the ten-year period and higher against the 2.77% reported as at the same period last year.
Net Fee and commission income grew by 11.2% to Rs 2.8 billion from Rs 2.6 billion 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. Impairment charges during the period under review decreased to Rs 4.3 billion by 11.7% compared to the same period last year. the gross NPL ratio increased to 2.97% compared to 2.79% reported in the same period last year mainly owing to the reclassification of some loans and advances under debt and other instruments.
The Bank generated a Return on Equity (RoE) of 33.92% and Return on Assets (RoA) of 1.93% at the end of 2021. The total asset base of the Bank grew at 15.8% to reach Rs 1.58Tn against the Rs 1.36 Tn reported as at the end of December 2020 mainly contributed by the growth in customer deposits, which increased by 15.5% to Rs 1.43 Tn compared to the deposit base reported at the end of December 2020. During the period under review, the Bank has mobilised Rs 192.6Bn and continued the momentum of mobilising low-cost funds during the period under review by mobilising Rs 46.7 Bn.
Loans and advances witnessed only an increase of 4.3% to Rs 538.9Bn over the last year December figure of Rs 516.8Bn underpinned by the conversion of Rs 59.4 Bn loans and advances under the “Debt Instruments”.