NSB Group delivers Rs.22.5bn operating profit in 1H 2026 as lending and core income strengthen
National Savings Bank Group (NSB) recorded resilient core banking performance during the first six months of 2026, supported by stronger net interest income, a notable expansion in fee-based earnings and continued growth in loans and advances. The results demonstrate the Bank’s capacity to maintain business momentum while navigating cost pressures and volatility in market-related income.
The Bank reported total operating income of Rs. 45.8 billion for the period, an increase of 3.1% compared with Rs. 44.5 billion in the corresponding period of 2025.
Net operating income increased by 2.3% to Rs. 49.1 billion from Rs. 48 billion reported a year ago, providing a stable foundation for the Bank’s operations and customer-focused growth agenda. Net interest income rose by 5.5% year-on-year to Rs. 44.2 billion, compared with Rs. 41.9 billion in the first half of 2025. This improvement was supported by a 4.7% reduction in interest expenses to Rs. 54.5 billion, despite a marginal moderation in interest income to Rs. 98.6 billion.
The result reflects disciplined balance-sheet management and the Bank’s continued focus on maintaining a sustainable funding and asset mix. The Bank also achieved substantial growth in fee-based earnings. Net fee and commission income increased by 37.0% to Rs. 1.40 billion, from Rs. 1.02 billion a year earlier. The increase underlines the growing contribution from transaction-led services and the Bank’s ongoing efforts to broaden non-interest revenue through customer-centric and digitally enabled banking solutions.
Profit before Tax amounted to Rs. 22.6 billion, compared with Rs. 24.1 billion in the first half of 2025, while profit after tax stood at Rs. 13.4 billion, compared with Rs. 14.7 billion. The moderation in profitability principally reflected higher operating costs and the lower contribution from trading and derecognition gains. Personnel expenses increased to Rs. 13.8 billion from Rs. 11.5 billion, while other operating expenses rose to Rs. 4.3 billion from Rs. 4.1 billion. Despite these pressures, the Bank preserved a substantial earnings base and continued to invest in the people, systems and service capabilities required to improve operational resilience and the customer experience. Income tax for the period amounted to Rs. 9.14 billion, while VAT and the Social Security Contribution Levy on financial services together exceeded Rs. 7.29 billion. In addition, the Bank declared a dividend of Rs. 7.4 billion to the Government as its sole shareholder. Accordingly, NSB’s total contribution to the Government through dividends, taxes and levies amounted to Rs. 23.8 billion, underscoring the Bank’s significant contribution to public finances and national development.
National Savings Bank Chairman Dr. Harsha Cabral PC said: “The first-half results reflect the resilience of NSB’s core business model and the enduring confidence placed in the Bank by generations of Sri Lankans. Our priority remains the prudent stewardship of public savings while supporting productive economic activity, financial inclusion and sustainable national development.”
NSB’s total assets increased by 2.1% during the first six months of the year to Rs. 1.87 trillion, from Rs. 1.83 trillion at end-December 2025. Loans and advances recorded a strong 9.1% expansion to Rs. 601.01 billion from Rs. 550.83 billion, demonstrating the Bank’s continued support for the financing needs of individuals, households and eligible institutional customers within its mandate. Deposits, the principal source of funding for NSB, increased by 1.5% to Rs. 1.63 trillion from Rs. 1.61 trillion.
Acting General Manager/CEO of National Savings Bank, Rohana Bandara Weerakoon, said: “Our focus is on translating the Bank’s trusted savings franchise into sustainable customer value. The growth achieved in lending, fee income and shareholder’s equity is encouraging. We will continue to strengthen digital access, service quality, cost discipline and risk management while delivering on NSB’s national mandate.”
Source : Daily News
