Friday Mar 20, 2026
Friday Mar 20, 2026
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| Chairman Dr. Harsha Cabral, PC |
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| Acting GM/CEO Rohana Bandara Weerakoon |
National Savings Bank Group (NSB) said its operating profit (before all taxes) surged by 55% to reach Rs. 59 billion as of end-2025, while Profit After Tax (PAT) recorded a corresponding increase of 61% to Rs. 28.2 billion.
The detailed financial information that follows pertains to the performance of the bank, which accounts for the predominant share of NSB Group’s operations.
PAT of the bank surged by 69% reflecting sustained momentum in net interest income, disciplined cost management, and a sharp decline of 86% in impairment charges.
Total assets expanded by 4% to Rs. 1,831 billion, supported by calibrated growth in the loans and advances portfolio and strategic investments in Government securities. Funding stability remained a cornerstone of NSB’s strength, with the deposit base growing by 3% to Rs. 1,608 billion, underpinned by sustained depositor confidence and the bank’s explicit Government guarantee, the bank said in a statement.
NSB’s exceptional profit growth was underpinned by a 17% increase in net interest income (NII), which rose to Rs. 84.8 billion from Rs. 72.6 billion in 2024. This performance was achieved despite a 3% decline in interest income, as the bank’s proactive asset-liability management and disciplined deposit repricing delivered a 14% reduction in interest expenses, from Rs. 131.2 billion to Rs. 112.9 billion. Accordingly, the bank’s net interest margin (NIM) strengthened to 4.74% from 4.22% reported a year ago, supported by effective funding cost optimisation and a stable, low-cost deposit base.
The translation of this robust operational performance into superior shareholder returns is evidenced by the sharp expansion in key profitability metrics, with Return on Equity (ROE) surging to 25.08% from 17.89% in the preceding year, while Return on Assets (ROA) increased to 2.48% from 1.53%. This significant enhancement in both returns on equity and assets underscores the bank’s exceptional efficiency in deploying its capital and asset base to generate value for its stakeholder.
Net fee and commission income recorded exceptional growth of 46%, reaching Rs. 2.56 billion compared to Rs. 1.75 billion in the previous year. This robust performance was driven by increased loan disbursements, higher card issuance and usage, and improved trade and remittance-related fee income, reflecting deepening customer engagement and the success of NSB’s service diversification strategy.
Net other operating income increased by an impressive 72% to Rs. 786 million, further contributing to the bank’s income diversification and earnings resilience.
A defining feature of NSB’s 2025 performance was the 86% reduction in impairment charges, which fell sharply to Rs. 1.64 billion from Rs. 11.53 billion in 2024. This significant decline reflects improving macroeconomic conditions, stabilisation in borrower creditworthiness, and the effectiveness of the bank’s proactive credit risk management framework.
The resultant enhancement in portfolio quality is evidenced by a marked improvement in the Stage 3 Ratio, which improved sharply to 2.53% as of 31 December 2025 from 5.18% reported at the close of 2024. Concurrently, the bank maintained a prudent and well-calibrated provisioning stance, with the Stage 3 Provision Coverage Ratio strengthening to 58.56% in 2025 from 44.50% in the previous year. This dual improvement, lower non-performing loans and higher coverage, reflects a disciplined approach to balance sheet management, ensuring that the loan portfolio remains resilient against potential macroeconomic volatility while safeguarding the interests of depositors and other stakeholders.
Operating expenses were managed with discipline, increasing marginally to Rs. 30.4 billion including depreciation. Personnel expenses recorded a slight 2% decline to Rs. 19.9 billion, reflecting careful cost governance even as the bank continued to invest in its people and developments. This unwavering commitment to financial discipline ensured that strong income growth translated directly into bottom-line expansion, with the bank’s cost-to-income ratio excluding taxes improving to 34.30% from 38.35% reported in the preceding year.
NSB continued to uphold its fiscal responsibilities, contributing Rs. 30.1 billion in taxes to the national economy during the year. This comprised Value Added Tax (VAT) on financial services of Rs. 11.32 billion, Social Security Contribution Levy (SSCL) of Rs. 1.57 billion, and income tax expenses of Rs. 17.17 billion. With a dividend declaration of Rs. 6.1 billion, and Rs. 1.8 billion of Deposit Insurance and Crop Levy, the bank’s total contribution to the Government stood at Rs. 38 billion with a 77% increase compared to the last year.
NSB’s total asset base grew by 4% to reach Rs. 1,831 billion as of 31 December 2025, compared to Rs. 1,752 billion at the close of 2024. This growth reflects a deliberate and measured strategy focused on optimising core operations and leveraging emerging opportunities in a recovering economic environment.
Loans and advances increased by 3% to Rs. 550.8 billion, driven by growth in retail loans and advances and securities purchased under resale agreements. Financial assets at amortised cost, comprising debt and other instruments, increased by 5% to Rs. 1,093 billion, reflecting continued investment in Government securities and other high-quality liquid assets. Financial assets measured at fair value through other comprehensive income grew by 21% to Rs. 64.6 billion, supported by favourable market conditions and portfolio optimisation.
Customer deposits, the cornerstone of NSB’s funding model, increased by 3% to Rs. 1,608 billion, accounting for approximately 94% of total liabilities. This growth underscores the unwavering confidence that millions of Sri Lankans place in NSB as the nation’s safest and most trusted savings institution.
NSB maintained its position as one of the best-capitalised banks in Sri Lanka, with capital ratios significantly exceeding regulatory minimums. The Tier 1 Capital Ratio stood at 24.90%, well above the regulatory minimum of 8.5%, while the Total Capital Ratio (CAR) remained at 26.83% compared to the minimum requirement of 12.5%.
Total shareholders’ equity grew by an impressive 20% to Rs. 119.1 billion, driven by strong profit retention and fair value gains on investment portfolios. This robust capital base provides NSB with substantial capacity to absorb potential shocks, support future growth initiatives, and continue serving as a pillar of financial stability for the nation.
Complementing its capital strength, NSB’s liquidity position remained exceptionally robust throughout the year, with all regulatory ratios comfortably exceeding minimum thresholds. The Liquidity Coverage Ratio (LCR) for all currencies stood at 349.2% against the minimum requirement of 100%, while the Rupee LCR was recorded at 360.4%. The Net Stable Funding Ratio (NSFR) reached 206.4%, significantly above the 100% minimum threshold. Together, these fortress-like capital and liquidity buffers provide absolute assurance that NSB can meet all obligations as they fall due, even under stressed conditions, and continue serving customers without interruption.
Chairman Dr. Harsha Cabral, PC said that NSB’s 69% PAT growth reflects the resilience of its core franchise, the effectiveness of its risk management framework and the focused financial discipline. With capital ratios among the strongest in the sector and an explicit Government guarantee, NSB provides absolute assurance as the safest home for Sri Lanka’s savings. Looking ahead, the bank will sustain strong capital buffers to protect depositor confidence while supporting national economic recovery through responsible credit expansion, particularly in housing and green financing segments.
Acting GM/CEO Rohana Bandara Weerakoon added that 17% NII growth, a 46% surge in fee income, and an 86% reduction in impairment charges demonstrate disciplined execution and improving fundamentals. Digital transformation gained significant momentum, positioning NSB to meet evolving customer expectations.
The bank will accelerate this transformation to improve service efficiency and expand reach, while deepening customer relationships through enhanced service delivery and financial literacy programs. With its fortress balance sheet and unwavering public trust, NSB enters 2026 firmly committed to empowering every journey, with safety, stability, and service at its core.
