NSB records Rs. 25.5 Bn. PBT for 3Q2024
National Savings Bank showcased robust financial performance in the third quarter of 2024, reporting a remarkable net interest income of Rs. 53.4 billion reflecting a remarkable growth of 191% compared with Rs. 18.3 billion recorded during the same period last year.
NSB achieved a remarkable profit before tax of Rs. 25.5 billion, reflecting strong growth compared to the corresponding period of the previous year. This outstanding achievement was realized despite a decline in both gross income and interest income of 8.7% and 9.1% respectively over the period under review.
“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. 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 realized gains from treasury bonds and treasury bills totalling Rs. 442 million. Operating expenses rose by 28%.
During the nine months 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 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 that “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. 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.”
Profitability metrics showed marked improvement in the nine months ending 30 September 2024 of the year, surpassing the figures recorded at the close of 2023. The Net Interest Margin rose by an impressive 242 basis points, reaching 4.21%, while Return on Assets and Return on Equity stood at 2.01% and 22.89%.
The Bank’s liquidity metrics were well above regulatory requirements.
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