NDB reports all-time high PAT of Rs. 4.2 b in 1H

Driven primarily by core banking operations, profit before all taxes and after tax grow by 32%

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Net loans, deposits and total assets expand by 21%, 10% and 15%, respectively, with highest-ever absolute net loans growth during a 1H period Net loans to SMEs cross Rs. 100 b mark, accounting for close to 20% of loan book Solvency level continues to be sound, with over 5% buffer in terms of CET1 and over 4% across Total CAR

THE National Development Bank PLC (NDB) yesterday announced the results for the six-month period ended 30 June 2025, reporting a total oper- ating income and pretax profit of Rs. 22.3 billion and Rs. 8.6 billion, respectively (1H 2024: Rs. 22.9 billion and Rs. 6.5 billion).

Net interest income, which accounted for over 75% of the bank's total operating income, amounted to Rs. 16.9 billion for the semi-annual period; rising 2.7% over Rs. 16.5 billion in 1H 2024. This was notwithstanding the sharp decline in interest rates, where the one-year Government Treasury Bill yield fell to 7.9% at end-June 2025 from being close to 10.3% at end-June 2024. NDB was able to maintain its net interest margins broadly at 4.0% levels (2024: 4.3%) which, excluding items of a oneoff nature, was 4.2% on a like for like basis (2024: 4.4%).

At end-June 2025, the bank had close to Rs. 50.3 billion in loans and deposits under a special arrangement with its customer(s), with a netting-off feature (end-2024: Rs.19.6 billion).

Net fee and commission income grew by 8.4% to reach Rs. 3.6 billion which, the second quarter alone considered, was an impressive 20.8% quarter-on-quarter growth, underlining the conscious and diligent efforts made to improve its overall contribution to income from nonfunded sources. Growth in net fees stemmed from almost all aspects of its core business operations.