Monday Jun 01, 2026
Monday Jun 01, 2026
Friday, 29 May 2026 06:39 - - {{hitsCtrl.values.hits}}
The National Savings Bank (NSB) Group has recorded a steady and resilient performance for the first quarter of 2026, supported by a stronger core banking income base and disciplined asset-liability management.
For the three months ended 31 March 2026, the Group reported a Profit Before Tax (PBT) of Rs. 11.8 billion and Profit After Tax (PAT) of Rs. 7 billion, while making a total tax contribution of Rs. 8.5 billion during the quarter.
In a statement, NSB said the performance reflects its ability to maintain stability and earnings momentum in an evolving operating environment, while continuing to support Sri Lanka’s savings culture, financial inclusion, and responsible credit growth.
NSB’s public mandate, extensive customer reach, and trusted deposit franchise continued to provide a strong foundation for sustainable business performance.
The bank’s principal earnings driver, Net Interest Income, increased by 8.1% year-on-year (YoY) to Rs. 21.8 billion, reflecting focused management of interest income and funding cost. Total Operating Income increased by 5% to Rs. 22.5 billion, supported by a strong 53.5% increase in Net Fee and Commission Income to Rs. 760.6 million, reflecting the continued expansion of transaction-led banking activity and service-based income streams.
Chairman Dr. Harsha Cabral, PC said: “NSB’s performance for 1Q 2026 reflects the strength, stability, and public confidence that continue to define the bank.
As a State-owned savings institution with a national mandate, our focus remains on safeguarding depositor confidence, supporting financial stability, and contributing to the country’s development agenda. The bank’s contribution of Rs. 8.4 billion in taxes during the quarter further demonstrates its role as a responsible public financial institution and a partner in national progress.”
Operating profit before VAT and the Social Security Contribution Levy (SSCL) on financial services amounted to Rs. 15.3 billion. PBT for the quarter stood at Rs. 11.6 billion, compared to Rs. 12.1 billion in the corresponding period of the previous year, while PAT was Rs. 6.9 billion. The moderation in bottom-line profitability was mainly reflective of higher provisions for operating expenses and higher tax charges, even as the bank strengthened its core income lines and maintained operational stability.
The bank’s lending portfolio expanded in a measured manner during the quarter, with loans and advances increasing to Rs. 556.1 billion from Rs. 550.8 billion at the close of 2025.
Financial assets held at amortised cost in debt and other instruments remained a significant component of the asset portfolio at approximately Rs. 1.1 trillion, underscoring the bank’s prudent and liquidity-conscious asset allocation approach.
Customer deposits, which remain central to NSB’s identity and national savings mandate, stood at approximately Rs. 1.6 trillion as of 31 March 2026. The bank’s deposit base continued to provide a strong foundation for liquidity, depositor confidence, and national savings mobilisation, while supporting its role in financial intermediation across households, individuals, and communities.
Acting General Manager/CEO Rohana Bandara Weerakoon said: “The quarter was characterised by disciplined execution, careful balance sheet management, and close monitoring of business performance across the bank. We pursued growth selectively, with emphasis on funding discipline, asset quality, customer service, and operational efficiency. The improvement in Net Interest Income, fee-based income, and asset quality indicators reflects the continued strength of NSB’s core banking franchise and the commitment of our teams across the network.”
The Stage 3 Impaired Loans to Total Loans Ratio reduced to 2.34% from 2.53% as of 31 December 2025, indicating a positive movement in the quality of the lending portfolio, while impairment coverage on Stage 3 loans improved to 59.2% from 58.56%, reflecting continued attention to credit risk management and prudent provisioning practices.
Return on Assets (ROA) before tax stood at 2.56%, while Return on Equity (ROE) was recorded at 22.73%.
As of 31 March 2026, the bank continued to maintain a strong capital position, with the Tier 1 Capital Ratio and Total Capital Ratio stood at 23.34% and 24.90%, respectively. The bank reported a Liquidity Coverage Ratio (LCR) of 335.54% on an All-Currency basis, while the Net Stable Funding Ratio (NSFR) also remained strong at 204.05%, substantially above the minimum regulatory requirement, reflecting the stability of the bank’s funding structure, the strength of its deposit base, and its ability to meet medium- to long-term funding requirements in a prudent manner.
Looking ahead, NSB is expected to maintain its focus on quality growth, prudent asset and liability management, deposit mobilisation, digital transformation, customer-centric service delivery, and operational efficiency. The 1Q performance provides a constructive platform for the remainder of the year, with management attention directed towards disciplined implementation, careful risk oversight, sustained service excellence, and continued support for the financial aspirations of Sri Lankan households.
The Board of Directors of NSB is composed of seven distinguished members, led by Chairman Dr. Cabral. The Board also includes Jude Nilukshan, S.R.W.M. Ruwan Palitha Sathkumara, Dushyanta Basnayake, Ashane Jayasekara, Ranil Goonetilleke, and Supul Wijesinghe.
