National Savings Bank records Rs. 25.5 b PBT for 3Q in 2024

The National Savings Bank (NSB) showcased robust financial performance in the third quarter of 2024, propelled by the short-term advantages of liability reprising and a surge in fee-based income.

The nation’s premier savings bank reported a remarkable net interest income of Rs. 53.4 billion for the nine months ending 30 September 2024, reflecting a remarkable growth of 191% compared to Rs. 18.3 billion recorded during the same period last year. This outstanding achievement was realised despite a decline in both gross income and interest income of 8.7% and 9.1%, respectively, over the period under review. The decline in interest income was primarily attributed to the sustained reduction in interest rates on Government securities as well as loans and advances when compared to the corresponding period of the previous year.

“The past nine months have presented significant challenges, as we have strived to maintain margins while growing our portfolios in an interest rate reducing scenario. Although we are witnessing signs of recovery, the lingering effects of the worst economic crisis continue to impact both our borrowers and depositors. Despite these obstacles, our resilience and strategic focus have allowed us to navigate these turbulent times, ensuring that the bank remains on a path to sustained growth and stability,” NSB Chairman Dr. Harsha Cabral, PC commented.



Fee and commission income surged by 44%, primarily driven by higher revenue from card operations, mobile app transactions, and internet banking activities compared to that of 3Q2023. Meanwhile, the net gain on derecognition of financial assets measured at fair value through other comprehensive income soared by an impressive growth, bolstered by realised gains from Treasury bonds and Treasury bills totalling Rs. 442 million. Operating expenses rose by 28%, largely attributed to increased personal and other operating expenses.

NSB achieved a remarkable profit before tax (PBT) of Rs. 25.5 billion, reflecting strong growth compared to the corresponding period of the previous year. This impressive performance was realised despite a 28% rise in operating expenses and a significant surge in taxes compared to the same period last year.

During the nine-month period of the year, the bank contributed Rs. 18.4 billion in taxes to the Government, encompassing Value Added Tax (VAT) on financial services, the Social Security Contribution Levy (SSCL) on financial services, and Income Tax.

NSB reported a remarkable profit after tax (PAT) of Rs. 15.3 billion, a significant increase compared to Rs. 4.9 billion in the same period last year.

NSB General Manager/CEO Shashi Kandambi commented: “As we look ahead, the growth in private sector credit during the September quarter in the banking industry underscores a renewed sense of optimism and opportunity within the economy. This acceleration reflects a mutual confidence between the bank and our borrowers, driven by improving economic conditions and easing interest rates. With this positive momentum, we are committed to further supporting the private sector by responsibly expanding our lending activities. This strategic approach not only strengthens our role as a catalyst for economic growth but also reaffirms our confidence in the resilience and repayment capacity of our valued borrowers. Together, we are well-positioned to harness these opportunities and drive sustainable growth for the future.”

Profitability metrics showed marked improvement in the nine months ending 30 September 2024, surpassing the figures recorded at the close of 2023. 

The Net Interest Margin (NIM) rose by an impressive 242 basis points, reaching 4.21%, while Return on Assets (ROA) and Return on Equity (ROE) stood at 2.01% and 22.89%, reflecting increases of 175 basis points and 1,353 basis points, respectively. This remarkable growth is a direct result of well-timed, strategic decisions.

The bank’s liquidity metrics were well above regulatory requirements. The Regulatory Liquidity Coverage Ratio (Rupee), Liquidity Coverage Ratio (All Currency), and Net Stable Funding Ratio stood at 348.45%, 343.78%, and 184.89%, respectively, all comfortably exceeding the 100% minimum threshold. By the end of 3Q2024, the Tier I and Total Capital Adequacy Ratios were 18.00% and 20.54%, respectively, both significantly surpassing the regulatory minimums of 8.5% and 12.5%.

Regarding asset quality, the bank’s ratio of impaired loans (Stage 3) stood at 4.05% at the end of September 2024, compared to 2.41% at the end of September 2023. However, the Impairment (Stage 3) to Stage 3 Loans Ratio (%) decreased to 42.06%, from 53.28% reported at the end of 2023.