Investor Presentaiton
Asset Quality
Impairment analysis
LKR mn
Q3 2018
Q3 2017
Individual impairment
1,479
365
Collective impairment
934
439
•
Other provision -
[47]
68
charge/[release]
Total
2,365
872
•
NPL ratio analysis
Bank
FY 2017
Bank
Q3 2018
Industry
As of Aug 2018
1.83%
2.57%
3.6%
NDB bank
The increase in the Bank NPL ratio
reflects the industry-wide trend for NPLs
resulting from slowing economic growth and
other market challenges
Collective impairment increase due to
the rapid growth in the loan book [YTD – LKR 55
mn, YoY 69 mn]
Individual impairment increase due to
precautionary provisions which the Bank made for
a selective individually significant facilities, on a
prudent basis.
Strengths of the Bank, which would improve the impairment and NPL position of the Bank's
robust and focused recoveries mechanism - dedicated unit and resources
•
prudent risk management strategies
well diversified loan portfolio with minimized concentration risk
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