National Development Bank PLC (NDB) has reported a strong financial performance for the first quarter of 2025, with profit before tax rising by 118% year-on-year to Rs. 4.0 billion. The Bank’s post-tax profit increased by 168% to Rs. 1.9 billion, marking a robust start to the year in line with the nation’s broader economic rebound.
Releasing its financial results to the Colombo Stock Exchange, NDB highlighted growth across key areas, with total assets reaching Rs. 852.4 billion—a 7% increase since the end of 2024. Gross loans expanded by 5% to Rs. 535.2 billion, driven by demand across all business sectors, while customer deposits rose by Rs. 10.6 billion to Rs. 642.3 billion. The Bank’s CASA ratio improved to 25.82% from 24.91%, reflecting strategic efforts to grow low-cost funding.
Commenting on the results, Director and CEO Kelum Edirisinghe said, “We’ve made a strong start to the year, building on our record-breaking performance in 2024. Our plans for 2025 are bold and focused, aimed at accelerating growth, delivering sustainable returns, and enhancing shareholder value. With improving economic conditions, we are well-positioned to support our clients through smarter, more agile banking solutions.”
Total operating income for the quarter grew to Rs. 10.6 billion, up 5% from the same period in 2024. Net interest income was recorded at Rs. 8.0 billion, marginally down by 1% due to a lower interest rate environment. The Bank maintained a stable Net Interest Margin of 3.92% through effective repricing and asset mix optimization. Net fee and commission income stood at Rs. 1.8 billion, with electronic channels and operational services offsetting a slowdown in card-related income. Other income rose significantly to Rs. 842.4 million.
A key highlight of the quarter was the 40% reduction in total impairment charges to Rs. 2.6 billion, supported by improved credit quality and a Rs. 457.5 million reversal related to debt restructuring adjustments. Operating expenses increased by 13% year-on-year to Rs. 4.4 billion, mainly due to establishment and operational cost increases. However, the Bank noted that cost management remained within expected limits.
NDB continued to maintain strong capital and liquidity positions. Tier I and total capital adequacy ratios stood at 12.16% and 16.95% respectively, well above the regulatory minimums. Liquidity indicators also remained strong, with the rupee liquidity coverage ratio at 392.64%.
Earnings per share for the quarter was Rs. 18.18, while return on average equity was 10.03%. The Bank’s net asset value per share was Rs. 180.29, compared to a market share price of Rs. 107.00 at the end of the quarter.
Looking ahead, NDB reaffirmed its commitment to supporting Sri Lanka’s path to recovery. “We are deeply aligned with the country’s growth agenda and remain focused on creating long-term value through responsible banking, innovation, and sustainable finance,” Edirisinghe added.
