Sep 02, 2013 (SLBO) - NDB Stockbrokers had recently recommended 'BUY' signal for NTB. Accordingly, the net interest income of Nations Trust Bank (NTB) from core operations grew by 32% while the non interest income fell by 14% FY13H1. The drop in cost of funding towards the latter part of FY13Q2 resulted in the NIM's improving further to 5.49%. Despite challenging market conditions the bank recorded a profit growth of 5% for FY13H2 while FY13Q2 saw a profit dip of 4% due to increased impairement and net trading losses.
The loan and deposit growth remained slow as faced by the entire banking sector. The P/E and PBV valuations continue to be attractive considering the medium term growth prospects.