National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2026 Earnings Presentation
26 slides from National Development Bank's earnings presentation, May 21, 2026
Slide 1: Financial Results for 1Q 2026 - Presentation to Analysts
National Development Bank PLC Financial Results for 1Q 2026 Presentation to Analysts May 21, 2026 3:30 p.m. (UTC+05:30) Colombo
Slide 2: Corporate Participants
Corporate Participants PRESENTED BY Kelum Edirisinghe, Director/ Chief Executive Officer Q&A PANELISTS Kelum Edirisinghe, Director/ Chief Executive Officer K V Vinoj - Deputy Chief Executive Officer Damitha Samaranayake - Vice President - Treasury Alex Perera - Vice President - Risk/ Chief Risk Offi
Slide 3: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 4: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 5: Clear progress on investigation alongside accelerated remediation across impacted areas
1Q 2026 Results Clear progress on investigation alongside accelerated remediation across impacted areas Full criminal investigation underway and the Bank is cooperating completely with law enforcement. Four arrests so far, including two staff — one the main perpetrator Investigation Internal investi
Slide 6: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 7: Overview of the quarter's financial performance and key highlights
1Q 2026 Results Overview of the quarter’s financial performance and key highlight Fraud incident impact recognized • Rs. 13.20 Bn fully recognized across FY 2024, FY 2025, and Q1 2026; • Rs. 2.67 Bn impact in Q1 2026, resulting in Profit Before All Tax of Rs. 3.47 Bn Income growth and margins • Gros
Slide 8: Financial Impact from the Identified Incident and Reporting Treatment
1Q 2026 Results Financial Impact from the Identified Incident and Reporting Treatment Impact on the Bank’s Financial Reporting • The total financial impact of Rs. 13.20 Bn impact fully recognized, with prior periods restated including comparatives • The impact has been appropriately accounted for in
Slide 9: Restatement of Financial Statements Following the Identified Incident
1Q 2026 Results Restatement of Financial Statements Following the Identified Incident Statement of Profit or Loss • Comparative results for the quarter ended March 31, 2025, along with FY 2024 and FY 2025 financial statements, have been restated • The impact has been recognized under other expenses
Slide 10: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 11: Income and profitability
1Q 2026 Results Income and profitability Rs. Bn – 3 months ended 31 March 2025 2026 ∆ Rs. ∆% Note 1 Gross income 22.98 26.50 3.52 15.3 NII 7.97 9.05 1.08 13.5 Operating Expenses (Rs. Bn) 1Q FY25 1Q FY26 Movement (%) Net fee and commission income 1.76 2.19 0.43 24.9 (Restated ) Non-fund based income
Slide 12: NII & NIM
1Q 2026 Results NII & NIM Rs. Bn – 3 months ended 2025 2026 ∆ Rs. ∆% Interest income 20.36 22.66 2.30 11.3 Interest expenses 12.38 13.61 1.23 9.9 NII 7.97 9.05 1.08 13.5 Percentage of interest bearing assets 94.5 94.6 within total assets (%) Casting differences throughout the presentation are due to
Slide 13: Non-fund based income (NFBI)
1Q 2026 Results Non-fund based income (NFBI) Total operating income composition Rs. Bn – 3 months ended 2025 2026 ∆ Rs. ∆% Net fee and commission income (NFCI) 1.76 2.19 0.43 24.9 Net gain from trading (NGT) 0.54 0.72 0.18 34.6 11.9% Other 0.31 0.80 0.49 162.0 Total non-fund based income 2.60 3.72 1
Slide 14: Costs
1Q 2026 Results Costs Operating costs Operating cost composition Rs. Bn – 3 months ended 2025 2026 ∆ Rs. ∆% Other expenses (detected fraud) Personnel expenses 2.31 2.38 0.07 3.2 Other expenses (normal course of business) Depreciation and amortisation 0.27 0.32 0.05 17.9 Depreciation and amortisation
Slide 15: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 16: Balance sheet performance
1Q 2026 Results Balance sheet performance Total assets – BAU Rs. Bn – As at end FY25 1Q26 ∆ Rs. ∆% Rs. Bn – As at end FY25 1Q26 ∆ Rs. ∆% Total assets 926.17* 977.20 51.03 5.5 Total assets 935.81 988.83 53.02 5.7 Net loans 593.60 623.11 29.51 5.0 Investments 260.24 284.99 24.75 9.5 *Financial impact
Slide 17: Balance sheet performance – Loans
1Q 2026 Results Balance sheet performance – Loans Currency composition of the gross loan book Composition of the loan book – on the basis of pricing 26.4% 26.2% 34.4% 35.4% 73.6% 73.8% 65.6% 64.6% FY25 1Q26 FY25 1Q26 LCY FCY Variable Fixed 17
Slide 18: Credit quality
1Q 2026 Results Credit quality Impaired loans (Stage 3) to total loans ratio (%) Credit quality movement (%) 12.0 70.0 62.1 59.1 10.0 54.5 60.0 8.6 41.1 50.0 6.5 8.0 6.0 4.5 37.4 40.0 4.3 7.0 4.3 4.0 6.2 6.0 5.2 3.8 30.0 3.2 9.6 8.8 4.0 7.8 7.7 20.0 5.8 FY21 FY22 FY23 FY24 FY25 1Q26 2.0 10.0 NDB Sec
Slide 19: Balance sheet performance - Deposits
1Q 2026 Results Balance sheet performance - Deposits Currency wise deposits analysis Currency composition of the deposit book Reported results 27.9% 27.5% Rs. Bn – As at end FY25 1Q26 YTD growth % LCY deposits 509.72 530.16 4.0 FCY deposits 197.44 201.56 2.1 Total deposits 707.17 731.73 3.5 72.1% 72
Slide 20: Balance sheet performance – Deposits (Cont.)
1Q 2026 Results Balance sheet performance – Deposits (Cont.) Product wise deposits analysis Rs. Bn – As at end FY25 1Q26 YTD growth % CASA trend CASA total 191.14 187.22 (2.1) Time deposits 515.60 544.05 5.5 27.3% 27.0% Other deposits 0.44 0.46 6.1 24.9% 25.6% 22.6% Total 707.17 731.73 3.5 21.2% Cas
Slide 21: Agenda
1Q 2026 Results Agenda 1 Update on the fraud incident 2 Overview of the quarter 3 Income and profitability analysis 4 Balance sheet performance highlights 5 Solvency and key investor ratios 6 Q&A
Slide 22: Capital
1Q 2026 Results Capital Rs. Bn – As at end FY25 (Reported) FY25(Restated) 1Q26 ∆ Rs. ∆% Common Equity Tier 1 (CET1) capital 67.69 61.94 56.01 (5.93) (9.6) Tier 1 capital 67.69 61.94 56.01 (5.93) (9.6) Total capital 87.13 81.36 90.63 9.27 11.4 Risk Weighted Assets (RWA) 548.20 547.00 588.30 41.30 7.6
Slide 23: Liquidity
1Q 2026 Results Liquidity Regulatory ratios % - As at end FY25 (Reported) FY25(Restated) 1Q26 Minimum regulatory 1Q26 buffer over requirement minimum requirement - ppt Liquidity Coverage Ratio – Rupee 257.3 NA 177.5 100 77.5 Liquidity Coverage Ratio – All Currency 208.5 NA 153.3 100 53.3 Net stable
Slide 24: Key investor ratios
1Q 2026 Results ROE and PBV movement Key investor ratios 1.0 12.3 12.2 12.6 14. 0 12. 0 Investor ratios FY25 FY25 1Q26 1Q26 Difference 0.8 10. 0 (Reported) (Restated) (Excluding (Reported) 1Q2026 7.5 fraud impact) Reported Vs. 0.6 8.0 8.0 FY25 Restated 4.8 0.4 6.0 EPS - Rs. (Annualised) 25.90 13.64
Slide 25: NDB Remains Committed to its Long-Term Strategy
1Q 2026 Results • NDB’s immediate priority is to mitigate overall risks while maintaining liquidity and solvency well above regulatory requirements. NDB Remains • The Bank remains firmly committed to its 2030 targets, focused on strengthening its operating model, underwriting Committed standards, te
Slide 26: Q&A
Q&A
National Development Bank — Q1 2026 Earnings Presentation on 6ix