• Total deposits increased to Rs 1.6 trillion
• Stage 3 loan ratio reduced to 2.83%
• Capital Adequacy ratio at 27%
• 5^th most valuable brand in Sri Lanka

Robust performance

National Savings Bank Group (NSB) reported outstanding results for the first half of 2025, marking a new high in financial performance and operational resilience. The Bank posted a Profit Before Tax (PBT) of Rs. 25.5 billion for the six months ended 30^th June 2025, reflecting robust bottom-line efficiency and strategic cost containment. Profit After Tax (PAT) stood at Rs. 15.7 billion, representing a substantial 65% year-on-year increase compared to the corresponding period of 2024. This performance was primarily driven by a 27% growth in net interest income, which rose to Rs. 42.7 billion, underpinned by proactive asset-liability management and pricing. Operating income increased to Rs. 46.2 billion, supported by higher fee based and trading activities.

Commenting on the performance, NSB Chairman Dr. Harsha Cabral PC stated, “The first half of 2025 reflects the strength of our strategic foundation, governance frameworks, and execution capability. Amidst economic shifts, NSB has continued to deliver value, strengthen its fundamentals, and strengthen its national mandate.”

Surpassing a PBT of Rs. 25.5 billion within just six months with strict discipline on all aspects stands as a defining milestone in the Bank’s journey”, said Ms Shashi Kandambi, General Manager/CEO. “This achievement underscores the effectiveness of our strategic focus on balance sheet optimisation, disciplined cost management, and sustainable growth. Notably, our elevation to the position of the 5th most valuable brand in Sri Lanka by Brand Finance up from 7th place last year reflects the growing strength of our brand loyalty and stakeholder trust. We remain steadfast in our commitment to maintaining this performance trajectory, while consistently creating long-term value for all stakeholders”.

Enhanced profitability

The net interest margin (NIM) improved to 4.74%, compared to 4.31% reported at the end of December 2024, driven by better yields on assets and a reduction in cost of funds. This performance was complemented by continued improvement in cost-to-income ratio, which stood at 36.8%, down from 38%, signifying better cost control across the organization.

The Bank delivered an outstanding improvement in profitability, with Return on Assets (ROA) rising to 2.8% and Return on Equity (ROE) climbing sharply to 27.6%, up from 1.6% and 18.1% respectively as at the end of the 2024 financial year, reaffirming NSB’s strategic emphasis on sustainable value creation.

Strong financial position, Improved Asset Quality

NSB’s total asset base expanded to Rs. 1.85 trillion as of 30th June 2025, compared to Rs. 1.78 trillion at the end of December 2024, reflecting continued balance sheet growth and financial strength. The Bank’s investment portfolio comprising of government securities, equity investments, and debt instruments registered a 9.3% increase over the six-month period, reaching Rs. 1.14 trillion, up from Rs. 1.05 trillion at year-end 2024. Concurrently, total deposits rose to Rs. 1.58 trillion during the first half of 2025, underscoring sustained depositor confidence.

The Bank also made commendable progress in enhancing its asset quality indicators. As of 30^th June 2025, the Stage 3 loans to total loans ratio declined to 2.83%, a sharp improvement from 5.18% recorded at the end of 2024. Moreover, the Stage 3 impairment coverage ratio improved to 56.9%, up from 44.50%. This significant improvement demonstrates the Bank’s tightened credit risk assessment, timely resolution of non-performing exposures, and increased focus on recoveries.

Capital Strength and Liquidity profile

NSB continues to demonstrate strong capital adequacy, comfortably exceeding all statutory thresholds mandated by the Central Bank of Sri Lanka. As of 30^th June 2025, the capital ratios remained robust, with Tier 1 capital at 25%, and the Total Capital Ratio at 27% well above the regulatory minimums of 8.5%, and 12.5%, respectively.

The Bank’s liquidity position remains among the strongest in the industry, attesting to its business model and robust funding model. As of 30^th June 2025, the Liquidity Coverage Ratio (LCR) stood at 362% in rupee terms and 356% for all currencies, substantially surpassing the regulatory requirement of 100%.

Also, the Net Stable Funding Ratio (NSFR) reached 197%, affirming the Bank’s sound long-term funding capability and structural stability.

These capital and liquidity buffers reflect efficient balance sheet management, and a prudent retention policy that supports a sustainable business growth and the resilience in a dynamic operating environment.

The Board of Directors of NSB is composed of five distinguished members, led by Chairman Dr. Harsha Cabral, PC. The Board also includes Mr. Jude Nilukshan, Mr. S. R. W. M. Ruwan Palitha Sathkumara, Mr. Dushyanta Basnayake, and Mr. Ashane Jayasekara.