National Savings Bank Group (NSB) reported strong results for the first half of 2025, with a Profit Before Tax (PBT) of 25.5 billion rupees, demonstrating operational resilience. Profit After Tax (PAT) increased by 65 percent year-on-year to 15.7 billion rupees, driven by a 27 percent growth in net interest income to 42.7 billion rupees. Operating income rose to 46.2 billion rupees, supported by higher fee-based and trading activities.
Dr. Harsha Cabral PC , Chairman, NSB highlighted that the results reflect NSB’s strategic strength and commitment to delivering value amidst economic changes.
“Surpassing a PBT of 25.5 billion rupees in just six months marks a significant milestone for the Bank,” said Shashi Kandambi, General Manager and Chief Executive Officer, National Savings Bank. “This achievement highlights our strategic focus on balance sheet optimisation, disciplined cost management, and sustainable growth. We are committed to maintaining this performance and creating long-term value for all.”
The net interest margin (NIM) improved to 4.74 percent, compared to 4.31 percent reported at the end of December 2024, driven by better asset yields and reduced cost of funds.
This performance was complemented by continued improvement in the cost-to-income ratio, which stood at 36.8 percent, down from 38 percent, 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 percent respectively as at the end of the 2024 financial year, reaffirming NSB’s strategic emphasis on sustainable value creation.
NSB’s total asset base expanded to 1.85 trillion rupees as of June 30, 2025, compared to 1.78 trillion rupees at the end of December 2024, reflecting continued balance sheet growth and financial strength.
The Bank’s investment portfolio, comprising government securities, equity investments, and debt instruments, registered a 9.3 percent increase over the six months, reaching 1.14 trillion rupees, up from 1.05 trillion rupees at year-end 2024. Concurrently, total deposits rose to 1.58 trillion rupees during the first half of 2025, underscoring sustained depositor confidence.
The Bank significantly improved its asset quality by reducing the Stage 3 loans to total loans ratio from 5.18 at the end of 2024 to 2.83 percent as of June 30, 2025.
Additionally, the Stage 3 impairment coverage ratio rose from 44.50 to 56.9 percent, reflecting stronger credit risk assessment and a focus on recovering non-performing exposures.
NSB shows strong capital adequacy, exceeding Central Bank of Sri Lanka requirements. As of June 30, 2025, Tier 1 capital is at 25 percent and Total Capital Ratio at 27 percent, well above the minimums of 8.5 percent and 12.5 percent.
Profit After Tax (PAT) increased by 65 percent year-on-year to 15.7 billion rupees, driven by a 27 percent growth in net interest income to 42.7 billion rupees. Operating income rose to 46.2 billion rupees, supported by higher fee-based and trading activities.
