NDB reports institutional all-time high PAT of Rs. 4.2 bn for 1H25

National Development Bank PLC released results for six-month period ended June 30, 2025 reporting a total operating income and pretax profit of Rs. 22.3 billion and Rs. 8.6 billion, respectively (H1-2024: Rs. 22.9 billion and Rs. 6.5 billion).

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Net interest income, which accounted for over 75 percent of the Bank’s total operating income, amounted to Rs. 16.9 billion for the semiannual period; rising 2.7 percent over Rs. 16.5 billion in H1-24. This was notwithstanding the sharp decline in interest rates where the one-year government Treasury Bill yield fell to 7.9 percent at end June, 2025 from being close to 10.3 percent at end June, 2024.

NDB was able to maintain its Net Interest Margins broadly at 4.0 percent levels (2024: 4.3 percent) which, excluding items of a one-off nature, was 4.2 percent on a like for like basis (2024: 4.4 percent).

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 & commission income grew by 8.4 percent to reach Rs. 3.6 billion whilst, the second quarter alone considered, it was an impressive 20.8 percent quarter-on-quarter growth; underlining the conscious and diligent efforts made to improve its overall contribution to income from non-funded sources. Growth in net fees stemmed from almost all aspects of its core business operations.Impairment charges of Rs. 4.5 billion for the period saw a 46.7 percent YoY reduction from Rs. 8.4 billion in the same period of 2024, attributable to greater focus of the Bank on improving credit quality. This took the Bank’s total impairment coverage ratio, excluding such one-off items of a special nature, to 8.7 percent (end 2024: 9.6 percent); which compared well relative to the industry average at the said period end.