National Savings Bank demonstrated robust performance during the first half of 2019 amidst subdued macroeconomic and market conditions, and witnessed Profit Before Tax of 4.3 billion rupees, a growth of 15.5 percent compared to the corresponding period of 2018.
Profit After Tax was 2.3 billion rupees, an increase of 15.2 per cent over the same period last year, despite the loss of Withholding Tax on government securities amounting to 1.3 billion rupees during first six months of 2019 due to removal of WHT benefit with effect from April 1, 2018. Total income grew by 6.2 percent to 59.1 billion rupees, whilst total operating income grew by 15.3 percent to reach at 15.1 billion rupees. Net Interest Income grew by 10.9 percent to reach 13.8 billion rupees over the same period last year. Net Interest Margin improved to 2.61 percent during the first half of 2019 owing to growth in interest income outsets the growth of interest expenses. Further, net fee income grew by 30.7 percent to 499.2 million rupees benefitted from increase in business volumes. Impairment charge for the period declined by 36.7 percent over the same period last year fuelled by redemption of Sri Lanka Development Bonds, which matured in 3Q 2018. The total assets of the bank grew by 5.2 percent to reach 1.1 trillion rupees, supported by growth in customer deposits. Customer deposits reached 907.8 billion rupees, an increase of 8.1 percent. Net loans and advances also rose by 5.7 percent to 447.8 billion rupees. At the end of 1H 2019, the Bank has managed to maintain the gross Non-Performing Loan ratio at 1.69 percent, one of the lowest in the banking industry. Complying with the Central Bank of Sri Lanka’s directions on capital requirements under Basel III, Tier 1 and total capital adequacy ratios of the Bank as of June 30th 2019 were 12.647 and 15.197 percent respectively, well above the statutory minimum requirements.