NSB records highest-ever profit in 2025 amid strong financial performance
The National Savings Bank (NSB) has reported its highest-ever profit for the financial year ended December 31, 2025, reflecting robust growth across core banking operations and strengthened financial stability.
The State-owned savings bank posted a record operating profit of Rs. 59 billion, marking a 55% increase year-on-year, while profit after tax (PAT) rose sharply by 61% to Rs. 28.2 billion. The Bank’s standalone performance was even stronger, with PAT surging by 69%, driven by improved net interest income, lower impairment charges, and disciplined cost management.
NSB’s financial position remained solid, with total assets expanding by 4% to Rs. 1.83 trillion. Its deposit base grew to Rs. 1.6 trillion, underlining sustained depositor confidence supported by the institution’s Government guarantee.
Profitability gains were largely driven by a 17% increase in net interest income, which rose to Rs. 84.8 billion. This growth was achieved despite a slight decline in interest income, as the Bank effectively reduced interest expenses through prudent asset-liability management. Consequently, the net interest margin improved to 4.74%, up from 4.22% in 2024.
Non-funded income also recorded strong growth, with fee and commission income rising by 46% to Rs. 2.56 billion, supported by increased lending activity, higher card usage, and improved remittance-related services. Meanwhile, other operating income grew by 72%, contributing further to revenue diversification.
A notable highlight of the year was the sharp decline in impairment charges, which fell by 86% to Rs. 1.64 billion. This reflects improved asset quality and better credit conditions. The Stage 3 loans ratio improved significantly to 2.53% from 5.18% a year earlier, while provision coverage strengthened to 58.56%.
Operating expenses were tightly controlled, rising marginally to Rs. 30.4 billion, while the cost-to-income ratio improved to 34.3%, indicating enhanced operational efficiency.
NSB also made a substantial contribution to government finances, paying Rs. 30.1 billion in taxes, including VAT, income tax, and other levies. With dividends and additional contributions, its total fiscal contribution reached Rs. 38 billion, a 77% increase compared to the previous year.
The Bank maintained strong capital and liquidity positions well above regulatory requirements. Its total capital adequacy ratio remained robust, supported by a 20% increase in shareholders’ equity to Rs. 119.1 billion. Liquidity ratios also remained significantly higher than minimum thresholds, ensuring resilience against potential economic shocks.
NSB Chairman Dr. Harsha Cabral stated that the Bank’s performance reflects strong financial discipline and a resilient business model. He noted that the institution will continue to support economic recovery through responsible lending, particularly in housing and green financing.
Acting General Manager and CEO Rohana Bandara Weerakoon highlighted the Bank’s focus on digital transformation and customer engagement, noting that these initiatives will further strengthen service delivery in the coming year.
With a strong balance sheet and growing profitability, NSB enters 2026 positioned as one of Sri Lanka’s most stable financial institutions.
Source : Daily News
