The National Savings Bank (NSB) has reported an impressive profit-before-tax (PBT) of Rs. 15 billion for the first half of 2024, surpassing the previous year’s profit-after-tax (PAT) of Rs. 7.21 billion for the same period.
NSB Chairperson Dr. Harsha Cabral commented on the strong financial performance, stating, “Our profitability in the first six months reflects the strategic direction of our management, the hard work of our employees, and the positive impact of economic stabilization. Despite the challenges, the team has demonstrated resilience, positioning the bank to thrive in a post-crisis environment.”
General Manager Shashi Kandambi attributed the bank’s success to optimal treasury operations and strong liquidity management. The bank saw a 170% increase in net interest income, reaching Rs. 32.5 billion. Fee and commission income also surged by 55%, driven by higher fees from cards and digital transactions.
While interest income for the first half dropped by 7% to Rs. 103 billion, interest expenses fell by 29% to Rs. 71 billion, leading to increased profitability. The bank’s net gain from financial assets at fair value through other comprehensive income rose by 543%, largely due to gains from treasury bonds and bills.
Operating PBT reached Rs. 20.11 billion, a significant improvement from the Rs. 581 million reported in the same period last year. The bank contributed Rs. 11.2 billion in taxes to the government, including VAT on financial services, SSCL, and income tax.
NSB’s net interest margin (NIM) increased to 3.86%, while return on assets (ROA) and return on equity (ROE) improved to 1.78% and 20.74%, respectively. The bank’s liquidity and capital adequacy ratios remained well above regulatory requirements, reflecting its strong financial position.