NSB posts highest-ever profits in 2025

NATIONAL Savings Bank Group (NSB) said its operating profit (before all taxes) surged by 55% to reach Rs. 59 billion as of end-2025, while Profit After Tax (PAT) recorded a corresponding increase of 61% to Rs. 28.2 billion.

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The detailed financial information that follows pertains to the performance of the bank, which accounts for the predominant share of NSB Group's operations.

PAT of the bank surged by 69% reflecting sustained momentum in net interest income, disciplined cost management, and a sharp decline of 86% in impairment charges.

Total assets expanded by 4% to Rs. 1,831 billion, supported by calibrated growth in the loans and advances portfolio and strategic investments in Government securities. Funding stability remained a cornerstone of NSB's strength, with the deposit base growing by 3% to Rs. 1,608 billion, underpinned by sustained depositor confidence and the bank's explicit Government guarantee, the bank said in a statement.

NSB's exceptional profit growth was underpinned by a 17% increase in net interest income (NII), which rose to Rs. 84.8 billion from Rs. 72.6 billion in 2024.

This performance was achieved despite a 3% decline in interest income, as the bank's proactive asset-liability management and disciplined deposit repricing delivered a 14% reduction in interest expenses, from Rs. 131.2 billion to Rs. 112.9 billion. Accordingly, the bank's net interest margin (NIM) strengthened to 4.74% from 4.22% reported a year ago, supported by effective funding cost optimisation and a stable, low-cost deposit base.

The translation of this robust operational performance into superior shareholder returns is evidenced by the sharp expansion in key profitability metrics, with Return on Equity (ROE) surging to 25.08% from 17.89% in the preceding year, while Return on Assets (ROA) increased to 2.48% from 1.53%. This significant enhancement in both returns on equity and assets underscores the bank's exceptional efficiency in deploying its capital and asset base to generate value for its stakeholder.