Monday Nov 24, 2025
Monday Nov 24, 2025
Monday, 24 November 2025 06:06 - - {{hitsCtrl.values.hits}}
The National Savings Bank Group (NSB) has reported a solid performance for the nine months ended 30 September 2025, delivering sharp improvements in profitability, margins, and asset quality despite a moderating interest-rate environment.
The State-owned savings giant recorded a Profit Before Tax (PBT) of Rs. 34.8 billion, up 30%, while Profit After Tax (PAT) surged 32% to Rs. 21.2 billion.
Chairman Dr. Harsha Cabral, PC said the results highlight the bank’s ability to uphold its dual mandate of safeguarding national savings and supporting State financing, while maintaining strong profitability.
General Manager/CEO Shashi Kandambi noted that disciplined balance sheet management, improved margins, and sustained investments in technology and staff contributed to the strong performance.
Despite a slight moderation in total income due to lower market rates, core profitability strengthened significantly. A 15.8% reduction in interest expenses, driven by active liability management, led to a 16.8% increase in Net Interest Income (NII) to Rs. 64.4 billion. The Net Interest Margin (NIM) improved to 4.71%. Furthermore, net fee and commission income grew by 26.3%, and other non-interest income rose by nearly 62.5%, contributing to an 18.4% expansion in total operating income compared to the same period last year.
Operating expenses increased due to wage adjustments and digital investments, but the cost-to-income ratio remained steady at 38.28%, demonstrating solid cost control. After absorbing financial service levies of Rs. 10.6 billion (VAT and SSCL) and an income tax expense of Rs. 13.6 billion that rose in line with higher earnings, NSB delivered a PAT of Rs. 21.2 billion, a strong year-on-year (YoY) increase of over 32%.
This robust bottom-line performance was supported by a dramatic improvement in asset quality and an exceptionally fortified capital base. The Stage 3 impaired loan (NPL) ratio more than halved, falling sharply to 2.63% from 5.18% at the end of 2024. At the same time, the Stage 3 impairment coverage ratio increased to 59.36% (2024: 44.50%), underscoring the bank’s conservative provisioning stance and resilience against potential credit shocks.
Concurrently, the bank’s capital buffers remained strong, with a Tier 1 Capital Ratio of 21.92% and a Total Capital Ratio of 23.89%, both well above regulatory requirements. This reinforced financial foundation directly translated into enhanced profitability, with key metrics showing significant improvement: the Return on Assets (before tax) rose to 2.54% from 1.63%, and the Return on Equity increased substantially to 24.67% from 18.15%, evidencing greater earnings generation.
NSB’s total assets rose to Rs. 1.87 trillion, up 5.3% from end-2024, supported primarily by increased investments in Government securities. Loans and advances stood at Rs. 519 billion, marginally lower due to selective lending efforts.
Customer deposits increased to Rs. 1.59 trillion, reaffirming strong depositor confidence. Liquidity remained a standout strength, with the Liquidity Coverage Ratio (LCR) exceeding 349% and the Net Stable Funding Ratio (NSFR) at 195%, all far above regulatory requirements.
During the period, NSB contributed over Rs. 24.1 billion in taxes on financial services and income tax, reinforcing its role as a key supporter of public finance, in addition to the bank’s ongoing role as a major investor in Government securities and a conduit for funding to key State-owned enterprises.
Dr. Cabral noted that NSB will continue expanding access to financial services through its islandwide branch network and over 4,000 postal banking outlets. Kandambi added that the strong third quarter performance provides a firm foundation for the bank’s continued focus on digital banking, sustainable growth, and enhanced governance.
With stronger earnings, high liquidity, solid capital buffers, and improving asset quality, NSB enters the final quarter of 2025 in a robust position. The bank said it remains committed to its national mandate protecting public savings, supporting Government funding needs, and driving inclusive, sustainable financial progress across Sri Lanka.
