The National Savings Bank (NSB), for the year ended 31 December 2024, has reported a 126% increase in profit-after-tax (PAT), soaring to Rs. 16.29 billion from Rs. 7.22 billion in 2023.
NSB Chairperson Dr. Harsha Cabral PC said: “NSB’s financial success in 2024 underscores the strength of our strategic vision, disciplined execution, and unwavering dedication to our customers and stakeholders. Despite a challenging macroeconomic environment, we have demonstrated resilience, achieving record profitability while maintaining a strong balance sheet and a stable risk profile.”
“Our commitment to sustainable growth, prudent governance, and financial inclusivity continues to drive our long-term success. As we look ahead, we will further strengthen our role as a key pillar of Sri Lanka’s financial sector, ensuring that we create lasting value for the nation and its people,” Cabral said.
A pivotal driver of this exceptional performance was the remarkable 146% surge in net interest income, soaring to Rs. 72.78 billion from Rs. 29.57 billion in 2023.
This growth was achieved despite a 10% year-on-year decline in interest income, primarily stemming from an accommodative monetary policy stance that resulted in subdued yields on loans and government securities.
However, the substantial 34% reduction in interest expenses to Rs. 130.97 billion outpaced the decline in income, propelling a significant expansion in net interest income.
NSB General Manager/CEO Shashi Kandambi said: “By recalibrating our deposit strategies and capitalizing on favourable rate environments, we have significantly strengthened our interest margins. The bank’s ability to optimise its asset-liability mix and enhance operational efficiencies has been instrumental in achieving this milestone, reaffirming its commitment to sustainable growth and value creation.”
Complementing this growth was a 37% rise in net fee and commission income (Rs. 1.75 billion) and robust trading gains (Rs. 912 million), reflecting diversified revenue streams.
Additionally, fair value adjustments on financial assets contributed Rs. 442 million, reflecting a nimble approach to market volatility.
Collectively, these factors fuelled a 122% growth in total operating income, which more than doubled from Rs. 34.35 billion in 2023 to Rs. 76.34 billion in 2024. The robust expansion of non-interest income highlights NSB’s strategic focus on fee-based services and innovative financial solutions.