National Development Bank PLC
CSE stock code: NDB.N0000 | Bloomberg: NDB SL | Reuters: NDB.CM
Released to Colombo Stock Exchange on: 14 August 2025
Table of ContentsPerformance commentary 2
Financial statements published as per Rule 7.4 of the Listing Rules of the Colombo Stock Exchange 5
Important dates - H1 2025 financial results release 20
Corporate information 20
*The financial statements presented herewith are the unaudited financial statements for the six months ended 30 June 2025 and are prepared in accordance with the Sri Lanka Financial Reporting Standards.
NDB reports an institutional all-time high PAT of LKR 4.2 billion for H1-25 Highlights- Driven primarily by core banking operations, profit before all taxes and after tax grow by 32%
- Net loans, deposits and total assets expand by 21%, 10% and 15% respectively, with the highest-ever absolute net loans growth during a first-half period
- Net loans to SMEs crosses the LKR 100.0 billion-mark accounting for close to 20% of the loan book
- Solvency level continues to be sound with over 5.0% buffer in terms of CET1 and over 4.0% across Total CAR
National Development Bank PLC, Sri Lanka's Premier Financial Services Provider, announced the results for six-month period ended June 30, 2025 reporting a total operating income and pre-tax profit of LKR 22.3 billion and LKR 8.6 billion, respectively (H1-2024: LKR 22.9 billion and LKR 6.5 billion).
Fund based incomeNet interest income, which accounted for over 75% of the Bank's total operating income, amounted to LKR 16.9 billion for the semi-annual period; rising 2.7% over LKR 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% at end June, 2025 from being close to 10.3% at end June, 2024. NDB was able to maintain its Net Interest Margins broadly at 4.0% levels (2024: 4.3%) which, excluding items of a one-off nature, was 4.2% on a like for like basis (2024: 4.4%). At end June 2025, the Bank had close to LKR 50.3 billion in Loans and Deposits under a special arrangement with its customer(s) with a netting-off feature (end 2024: LKR 19.6 billion).
Non-fund based incomeNet fee & commission income grew by 8.4% to reach LKR 3.6 billion whilst, the second quarter alone considered, it was an impressive 20.8% 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.
Credit and operating costsImpairment charges of LKR 4.5 billion for the period saw a 46.7% YoY reduction from LKR 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% (end 2024: 9.6%); which compared well relative to the industry average at the said period end. Operating expenses totaled LKR 9.2 billion - which, whilst increasing by 14.8% over H1- 2024 - stemmed primarily from staff related routine increments and realignments to the industry, and higher investments in IT infrastructure and those of a direct business development nature.
Investor key performance indicatorsReturn on average equity was 10.6% down from 12.2% in 2024 whilst Annualized Earnings per share was LKR 19.65 down from LKR 21.25 for 2024. Respective ratios at the Group level were 10.8% (2024: 12.5%) and LKR 21.23 (2024: LKR 23.05), respectively. The Bank's Pre-tax return
on average assets was 2.0% (2024: 3.1%). Net asset value per share was LKR 186.81 (2024: LKR 186.91) and compared with a closing share price of LKR 120.25, which posted a 6.2% appreciation since end 2024. Group Net asset value per share was LKR 199.37 (2024: LKR 199.13).
FINANCIAL POSITIONThe Bank's total deposits amounted to LKR 696.1 billion at June 30, 2025 (end 2024: LKR 631.7 billion, 10.2% growth) whilst net loans expanded to LKR 557.0 billion (end 2024: LKR 460.7 billion, 20.9% growth). Excluding transactions of a one off and special nature, this represented a normalized absolute net growth of 5.5% and 14.9% over end 2024, respectively. The Bank's CASA ratio on a normalized basis was 25.0% having improved from 22.5% at end 2024; ultimately reflecting the Bank's conscious efforts to improve its low cost funding.
The Bank's Impaired loans (Stage 3) to total loans ratio was 5.1% (end 2024: 5.2%) which compared well with the industry average. Its Stage 3 provision coverage was 53.4% (end 2024: 54.5%) which also was close to the industry norm.
LIQUIDITY AND SOLVENCYLiquidity levels also remained strong with the Bank's Liquidity coverage ratios, across both Rupee and All currency, being 330.9% and 253.8%, respectively at June 30, 2025 (end 2024: 358.1% and 308.3%) and its Net stable funding ratio being 124.5% (end 2024: 152.4%) - all of which were well above the minimum regulatory requirements of 100.0%. The Bank's solvency levels as measured by CET1/ Tier I and Total CAR were 12.3% and 16.6%, respectively representing a strong over 5.0% buffer over its regulatory minimums from a CET1 perspective and over 4.0% buffer from a Total CAR perspective (end 2024: 13.7% and 19.1%).
OTHER NON-FINANCIAL INDICATORSThe branch network stood at 113 branches, supplemented by an ATM network of 60 and cash recycle machines (CRM) network of 106 spread across the island. Total staff as at the end of the period under review was 2,882 (2024: 2,920).
Commenting on the results for the first six months, the Bank's Director/ Chief Executive Officer Mr. Kelum Edirisinghe stated that: "Our results are testimony to our diligent, conscious and concerted effort to improve every aspect of our business whilst taking every measurereasonably necessary to strengthen our overall risk guard rails on a continuous basis. Supported by the continued positive progress of the Sri Lankan economy - albeit several macro level headwinds stemming mostly from the global economic landscape - we are very pleased to witness the resurgence of much of our customers across retail and all business segments. With customer-centricity at the heart of our every endeavor, we focused on delivering impactful support across all our client segments to enable them move forward in this emerging environment.
For us, the first six months of this year marks many milestones. Amongst them all, one standout is our continued contribution to the SMEs in the country and one which is best reflected in our loan book crossing the LKR 100.0 billion mark and accounting for close to 20% of our total loans - a feat we are very proud of! NDB's recent recognition as Euromoney's Best Digital Bank for SMEs for the year 2025 provides further testimony to the success of this focused effort to serve this crucial and determinative segment of our economy.
Looking ahead, our focus is clear. We will continue to leverage on our deep rooted knowledge and experience in understanding customer behavior better, use our digital capabilities to create greater ease of access and use the diverse skills and capabilities of our staff at both a front end and back to adopt and adjust to an ever evolving business landscape in order to ultimately better enable us create sustained shareholder value over the longer haul. Conscious of also the challenges which may lie ahead, we remain confident of the Bank's continuing trajectory of growth in its core banking operations and realizing its vision for the future sooner rather than later".
STATEMENT OF PROFIT OR LOSS | ||||||||||
Bank | Group | |||||||||
Period ended 30/06/2025 LKR '000 | Period ended 30/06/2024 LKR '000 | Change % | Quarter ended 30/06/2025 LKR '000 | Quarter ended 30/06/2024 LKR '000 | Period ended 30/06/2025 LKR '000 | Period ended 30/06/2024 LKR '000 | Change % | Quarter ended 30/06/2025 LKR '000 | Quarter ended 30/06/2024 LKR '000 | |
Gross income | 47,716,088 | 52,428,962 | (9) | 24,277,429 | 26,354,605 | 49,009,676 | 53,661,781 | (9) | 24,976,744 | 27,005,026 |
Interest income | 42,308,232 | 45,980,187 | (8) | 21,491,610 | 21,914,566 | 42,434,376 | 46,112,075 | (8) | 21,553,347 | 21,990,494 |
Interest expenses | 25,362,532 | 29,483,791 | (14) | 12,978,366 | 13,494,199 | 25,356,637 | 29,468,565 | (14) | 12,975,256 | 13,495,025 |
Net interest income | 16,945,700 | 16,496,396 | 3 | 8,513,244 | 8,420,367 | 17,077,739 | 16,643,510 | 3 | 8,578,091 | 8,495,469 |
Fee and commission income | 3,691,689 | 3,359,804 | 10 | 1,912,015 | 1,559,482 | 4,751,604 | 4,342,664 | 9 | 2,440,536 | 2,087,492 |
Less: Fee and commission expenses | 54,590 | 5,335 | 923 | 30,828 | 1,978 | 54,590 | 5,335 | 923 | 30,828 | 1,978 |
Net Fee and commission income | 3,637,099 | 3,354,469 | 8 | 1,881,187 | 1,557,504 | 4,697,014 | 4,337,329 | 8 | 2,409,708 | 2,085,514 |
Net gain/(loss) from trading | 578,755 | 570,782 | 1 | 252,288 | 253,861 | 578,755 | 570,782 | 1 | 252,288 | 253,861 |
Net gain/(loss) from financial assets at fair value through profit or loss | (8,781) | (198,010) | 96 | 13,943 | (158,570) | 70,473 | (60,876) | 216 | 110,033 | (80,393) |
Net gains/(losses) from de-recognition of financial assets | - | |||||||||
- at fair value through profit or loss | 86,214 | 704,677 | (88) | 41,028 | 285,312 | 118,556 | 704,677 | (83) | 61,404 | 285,312 |
- at fair value through OCI | 468,416 | 2,790,191 | (83) | 281,430 | 2,079,788 | 468,494 | 2,790,191 | (83) | 281,430 | 2,079,788 |
Other operating income | 591,563 | (778,669) | 176 | 285,115 | 420,166 | 587,418 | (797,732) | 174 | 277,706 | 388,472 |
Total operating income | 22,298,966 | 22,939,836 | (3) | 11,268,235 | 12,858,428 | 23,598,449 | 24,187,881 | (2) | 11,970,660 | 13,508,023 |
Less :Impairment charges/(reversals) on loans and other investments Net operating income | 4,479,866 | 8,397,291 | (47) | 1,847,521 | 4,040,812 | 4,479,866 | 8,388,243 | (47) | 1,847,521 | 4,031,764 |
17,819,100 | 14,542,545 | 23 | 9,420,714 | 8,817,616 | 19,118,583 | 15,799,638 | 21 | 10,123,139 | 9,476,259 | |
Operating expenses | ||||||||||
Personnel expenses | 4,879,796 | 4,343,453 | 12 | 2,569,113 | 2,250,937 | 5,286,501 | 4,749,912 | 11 | 2,774,030 | 2,472,112 |
Depreciation and amortization | 545,459 | 523,544 | 4 | 273,536 | 265,254 | 577,948 | 545,193 | 6 | 288,342 | 270,322 |
Other expenses | 3,750,582 | 3,129,193 | 20 | 1,918,984 | 1,584,187 | 4,096,318 | 3,488,484 | 17 | 2,127,673 | 1,767,054 |
Total operating expenses | 9,175,837 | 7,996,190 | 15 | 4,761,633 | 4,100,378 | 9,960,767 | 8,783,589 | 13 | 5,190,045 | 4,509,488 |
Operating profit before tax on financial services | 8,643,263 | 6,546,355 | 32 | 4,659,081 | 4,717,238 | 9,157,816 | 7,016,049 | 31 | 4,933,094 | 4,966,771 |
Less: Taxes on financial services Operating profit after tax on financial services | 2,229,383 | 1,800,000 | 24 | 1,165,684 | 1,154,482 | 2,229,383 | 1,800,000 | 24 | 1,165,684 | 1,154,482 |
6,413,880 | 4,746,355 | 35 | 3,493,397 | 3,562,756 | 6,928,433 | 5,216,049 | 33 | 3,767,410 | 3,812,289 | |
Share of associate companies' profits/(losses) | - | - | - | - | - | - | - | - | - | - |
Profit before taxation | 6,413,880 | 4,746,355 | 35 | 3,493,397 | 3,562,756 | 6,928,433 | 5,216,049 | 33 | 3,767,410 | 3,812,289 |
Less : Income tax expenses | 2,188,996 | 1,537,968 | 42 | 1,193,671 | 1,073,971 | 2,418,385 | 1,755,208 | 38 | 1,313,036 | 1,194,434 |
Profit for the period | 4,224,884 | 3,208,387 | 32 | 2,299,726 | 2,488,785 | 4,510,048 | 3,460,841 | 30 | 2,454,374 | 2,617,855 |
Profit attributable to: | ||||||||||
Equity holders of the parent | 4,224,884 | 3,208,387 | 32 | 2,299,726 | 2,488,785 | 4,488,120 | 3,445,986 | 30 | 2,447,561 | 2,608,335 |
Non controlling interests | - | - | - | - | - | 21,928 | 14,855 | 48 | 6,813 | 9,520 |
4,224,884 | 3,208,387 | 32 | 2,299,726 | 2,488,785 | 4,510,048 | 3,460,841 | 30 | 2,454,374 | 2,617,855 | |
Basic earnings per share (in LKR) | 9.93 | 7.55 | 32 | 5.41 | 5.86 | 10.55 | 8.11 | 30 | 5.75 | 6.14 |
Diluted earnings per share (in LKR) | 9.93 | 7.55 | 32 | 5.41 | 5.86 | 10.55 | 8.11 | 30 | 5.75 | 6.14 |
STATEMENT OF COMPREHENSIVE INCOME | ||||||||||
Period | Period | Quarter | Quarter | Period | Period | Quarter | Quarter | |||
ended | ended | ended | ended | ended | ended | ended | ended | |||
30/06/2025 | 30/06/2024 | Change | 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | Change | 30/06/2025 | 30/06/2024 | |
LKR '000 | LKR '000 | % | LKR '000 | LKR '000 | LKR '000 | LKR '000 | % | LKR '000 | LKR '000 | |
Profit for the period | 4,224,884 | 3,208,387 | 32 | 2,299,726 | 157,699 | 4,510,048 | 3,460,841 | 30 | 2,454,374 | 2,617,855 |
Items that will be reclassified to statement of profit or loss | ||||||||||
Exchange differences on translation of foreign operations | - | - | - | - | - | 1,430 | (31,899) | 104 | 1,311 | (7,858) |
Net Gains/(losses) on Investments in debt Instruments measured at fair value through other comprehensive income | 132,252 | (1,920,286) | 107 | 685,061 | (2,631,699) | 148,478 | (1,891,935) | 108 | 683,439 | (2,642,443) |
Changes in Impairment allowance for expected credit losses | 130,765 | - | 100 | (37,828) | - | 130,765 | - | 100 | (37,828) | - |
Cash flow hedge reserve-SWAP | (456,371) | (495,206) | 8 | (112,021) | (87,429) | (456,371) | (495,206) | 8 | (112,021) | (87,429) |
Less :Tax expense relating to items that will be reclassified to income | 97,235 | 724,648 | (87) | (171,913) | 815,739 | 98,789 | 724,648 | (86) | (171,913) | 815,739 |
statements | ||||||||||
A | (96,119) | (1,690,844) | 94 | 363,299 | (1,903,389) | (76,909) | (1,694,392) | 95 | 362,988 | (1,921,991) |
Items that will not be reclassified to statement of profit or loss | ||||||||||
Net Gains/(losses) on investments in equity instruments measured at fair value through other comprehensive income | 15,979 | 162,080 | (90) | 159,789 | 81,827 | 15,979 | 162,080 | (90) | 159,789 | 81,827 |
B | 15,979 | 162,080 | (90) | 159,789 | 81,827 | 15,979 | 162,080 | (90) | 159,789 | 81,827 |
Total other comprehensive Income after Tax A + B | (80,140) | (1,528,764) | 95 | 523,088 | (1,821,562) | (60,930) | (1,532,312) | 96 | 522,777 | (1,840,164) |
Total comprehensive income for the period | 4,144,744 | 1,679,623 | 147 | 2,822,814 | 667,223 | 4,449,118 | 1,928,530 | 131 | 2,977,152 | 777,692 |
attributable to: | ||||||||||
Equity holders of the parent | 4,144,744 | 1,679,623 | 147 | 2,822,814 | 667,223 | 4,427,198 | 1,922,121 | 130 | 2,970,202 | 772,310 |
Non controlling interests | - | - | - | - | - | 21,920 | 6,409 | 242 | 6,950 | 5,382 |
4,144,744 | 1,679,623 | 147 | 2,822,814 | 667,223 | 4,449,118 | 1,928,530 | 131 | 2,977,152 | 777,692 | |
Classif
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||
BANK | Group | |||||
Current Year | Previous Year | Current Year | Previous Year | |||
As at 30/06/2025 LKR '000 | As at 31/12/2024 (Audited) LKR '000 | Change % | As at 30/06/2025 LKR '000 | As at 31/12/2024 (Audited) LKR '000 | Change % | |
Assets | ||||||
Cash and cash equivalents | 16,869,185 | 18,037,627 | (6) | 17,812,111 | 18,682,376 | (5) |
Balances with the Central Bank of Sri Lanka | 4,714,481 | 8,053,358 | (41) | 4,714,481 | 8,053,358 | (41) |
Placements with banks | 14,240,156 | 22,098,832 | (36) | 14,240,156 | 22,098,832 | (36) |
Derivative financial instruments | 930,637 | 1,146,236 | (19) | 930,637 | 1,146,236 | (19) |
Financial assets recognized through profit or loss measured at fair value | 13,216,376 | 6,776,131 | 95 | 16,243,422 | 9,905,171 | 64 |
Financial assets at amortised cost -loans and receivables to other customers | 557,020,839 | 460,707,258 | 21 | 557,090,738 | 460,780,610 | 21 |
Financial assets at amortised cost - debt and other instruments | 204,849,296 | 166,190,761 | 23 | 205,302,434 | 166,355,792 | 23 |
Financial assets measured at fair value through other comprehensive income | 81,504,181 | 94,245,415 | (14) | 81,841,916 | 94,659,106 | (14) |
Investments in subsidiary companies | 1,031,037 | 1,031,037 | - | - | - | - |
Investment property | - | - | - | 3,107,671 | 3,107,671 | - |
Intangible assets | 1,630,818 | 1,766,615 | (8) | 1,678,517 | 1,814,985 | (8) |
Property, plant & equipment | 3,364,246 | 3,147,459 | 7 | 4,295,941 | 4,070,740 | 6 |
Right of use assets | 1,266,712 | 1,260,740 | 0 | 1,316,206 | 1,337,042 | (2) |
Current tax assets | - | - | - | 31,545 | 33,727 | (6) |
Deferred tax Assets | 5,088,386 | 4,158,040 | 22 | 5,150,597 | 4,216,721 | 22 |
Other assets | 10,950,699 | 7,066,842 | 55 | 11,486,235 | 7,517,853 | 53 |
Total assets | 916,677,048 | 795,686,351 | 15 | 925,242,607 | 803,780,220 | 15 |
Liabilities | ||||||
Due to banks | 10,879,275 | 4,841,342 | 125 | 10,879,275 | 4,841,342 | 125 |
Derivative financial instruments | 68,032 | 344,586 | (80) | 68,032 | 344,586 | (80) |
Financial liabilities at amortised cost -due to depositors | 696,075,188 | 631,682,926 | 10 | 695,813,197 | 631,081,461 | 10 |
Financial liabilities at amortised cost | ||||||
- due to debt securities holders | 54,868,919 | 8,002,850 | 586 | 54,868,919 | 8,002,850 | 586 |
- due to other borrowers | 20,695,211 | 22,023,798 | (6) | 20,695,211 | 22,023,798 | (6) |
Debt securities issued | 34,904,678 | 33,564,708 | 4 | 34,904,678 | 33,564,708 | 4 |
Retirement benefit obligations | 1,481,520 | 1,413,872 | 5 | 1,622,271 | 1,556,937 | 4 |
Current tax liabilities | 6,912,250 | 5,204,643 | 33 | 7,235,620 | 5,473,755 | 32 |
Deferred tax liabilities | - | - | - | 976,965 | 976,244 | 0 |
Other liabilities | 10,948,460 | 10,860,883 | 1 | 11,523,742 | 11,630,328 | (1) |
Dividends payable | 125,301 | 81,988 | 53 | 125,301 | 81,988 | 53 |
Total liabilities | 836,958,834 | 718,021,596 | 17 | 838,713,211 | 719,577,997 | 17 |
Equity | ||||||
Stated capital | 23,023,437 | 21,756,865 | 6 | 23,023,437 | 21,756,865 | 6 |
Statutory reserve fund | 3,521,479 | 3,521,479 | - | 3,521,479 | 3,521,479 | - |
Retained earnings | 44,437,408 | 43,501,855 | 2 | 49,476,511 | 48,276,283 | 2 |
Other reserves | 8,735,890 | 8,884,556 | (2) | 9,057,122 | 9,188,008 | (1) |
Total shareholders' equity | 79,718,214 | 77,664,755 | 3 - | 85,078,549 | 82,742,635 | 3 |
Non controlling interests | - | - | 1,450,847 | 1,459,588 | (1) | |
Total equity | 79,718,214 | 77,664,755 | 3 | 86,529,396 | 84,202,223 | 3 |
Total liabilities and equity | 916,677,048 | 795,686,351 | 15 | 925,242,607 | 803,780,220 | 15 |
Net book value per share (LKR) | 186.81 | 186.91 | (0) | 199.37 | 199.13 | 0 |
Contingent liabilities and commitments | 323,087,260 | 288,292,666 | 12 | 323,829,087 | 288,367,118 | 12 |
Certification: | ||||||
We hereby certify that the above financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007. (Sgd.) Azzam A. Ahamat Vice President - Finance We, the undersigned, being the Chairman and the Chief Executive Officer of National Development Bank PLC certify jointly that:
(Sgd.) (Sgd.) Sriyan Cooray Kelum Edirisinghe Director/ Chairman Director/ Chief Executive Officer i1ca4tiAonu:gPu2b0l2ic5 6 | ||||||
STATEMENT OF CHANGES IN EQUITY | |||||||||||
Stated Capital LKR '000 | Other Reserves | Retained earnings LKR '000 | Non | ||||||||
Revaluation reserve LKR '000 | Share based payment reserves LKR '000 | Fair value Cash flow hedge Special reserve reserve reserve ISB LKR '000 LKR '000 LKR '000 | |||||||||
For the period ended 30 June | Statutory reserve fund | Total | controlling interests | Total equity | |||||||
BANK | LKR '000 | LKR '000 | LKR '000 | LKR '000 | |||||||
Balance as at 01 January 2024 | 20,738,231 | 3,046,479 | 1,501,603 | 44,479 | 2,954,169 | 835,416 | - | 41,027,500 | 70,147,877 | - | 70,147,877 |
Total comprehensive income for the period | |||||||||||
Profit for the period | - | - | - | - | - | - | - | 3,208,387 | 3,208,387 | - | 3,208,387 |
Other comprehensive income before tax | - | - | - | - | (1,758,206) | (495,206) | - | - | (2,253,412) | - | (2,253,412) |
Tax on other comprehensive income | - | - | - | - | 576,086 | 148,562 | - | - | 724,648 | - | 724,648 |
Total comprehensive income for the period | - | - | - | - | (1,182,120) | (346,644) | - | 3,208,387 | 1,679,623 | - | 1,679,623 |
Transactions with equity holders | |||||||||||
Final dividends for year 2023 - Cash | - | - | - | - | - | - | - | (798,929) | (798,929) | - | (798,929) |
Final dividends for year 2023 - Scrip | 1,018,634 | - | - | - | - | - | - | (1,198,393) | (179,759) | - | (179,759) |
Reversal of dividends declared in prior periods | - | - | - | - | - | - | - | 17,155 | 17,155 | - | 17,155 |
Balance as at 30 June 2024 | 21,756,865 | 3,046,479 | 1,501,603 | 44,479 | 1,772,049 | 488,772 | - | 42,255,723 | 70,865,970 | - | 70,865,970 |
Balance as at 01 January 2025 | 21,756,865 | 3,521,479 | 1,537,818 | 148,428 | 2,891,806 | 292,075 | 4,014,429 | 43,501,855 | 77,664,755 | - | 77,664,755 |
Total Comprehensive Income for the period | |||||||||||
Profit for the period | - | - | - | - | - | - | - | 4,224,884 | 4,224,884 | - | 4,224,884 |
Other Comprehensive Income before Tax | - | - | - | - | 148,231 | (456,371) | - | 130,765 | (177,375) | - | (177,375) |
Tax on Other Comprehensive Income | - | - | - | - | (39,676) | 136,911 | - | - | 97,235 | - | 97,235 |
Total comprehensive income for the period | - | - | - | - | 108,555 | (319,460) | - | 4,355,649 | 4,144,744 | - | 4,144,744 |
Transactions with equity holders | |||||||||||
Issue of Shares | 205,029 | - | - | (61,123) | - | - | - | - | 143,906 | - | 143,906 |
Transfer to special reserve on SLISBs - Step up Bonds | - | - | - | - | - | - | 103,394 | (103,394) | - | - | |
Adjustment to share based payment reserves | - | - | - | 19,969 | - | - | - | - | 19,969 | - | 19,969 |
Final Dividends for year 2024 - Cash | - | - | - | - | - | - | - | (2,081,455) | (2,081,455) | - | (2,081,455) |
Final Dividends for year 2024 - Scrip | 1,061,542 | - | - | - | - | - | - | (1,248,873) | (187,331) | - | (187,331) |
Reversal of dividends declared in prior periods | - | - | - | - | - | - | - | 13,628 | 13,628 | - | 13,628 |
Balance as at 30 June 2025 | 23,023,436 | 3,521,479 | 1,537,818 | 107,273 | 3,000,361 | (27,385) | 4,117,823 | 44,437,410 | 79,718,215 | - | 79,718,214 |
STATEMENT OF CHANGES IN EQUITY | |||||||||||
For the period ended 30 June GROUP | Stated Capital LKR '000 | Statutory Reserve Fund LKR '000 | Other Reserves | Retained Earnings LKR '000 | Total Rs '000 | Non Controlling Interests LKR '000 | Total Equity LKR '000 | ||||
Revaluation Reserve LKR '000 | Share Based Payment Reserves LKR '000 | Fair Value Reserve LKR '000 | Cash Flow Hedge Reserve LKR '000 | Special reserve ISB LKR '000 | |||||||
Balance as at 01 January 2024 | 20,738,231 | 3,046,479 | 1,747,711 | 44,479 | 2,979,910 | 835,416 | - | 45,079,167 | 74,471,393 | 1,424,930 | 75,896,323 |
Total Comprehensive Income for the period | |||||||||||
Profit for the period | - | - | - | - | - | - | - | 3,445,986 | 3,445,986 | 14,855 | 3,460,841 |
Other Comprehensive Income before Tax | - | - | - | - | (1,729,855) | (495,206) | - | (23,451) | (2,248,512) | (8,446) | (2,256,958) |
Tax on Other Comprehensive Income | - | - | - | - | 576,086 | 148,562 | - | - | 724,648 | - | 724,648 |
Total Comprehensive Income for the period | - | - | - | - | (1,153,769) | (346,644) | - | 3,422,535 | 1,922,122 | 6,409 | 1,928,531 |
Transactions with equity holders | |||||||||||
Final Dividends for year 2023 : Cash | - | - | - | - | - | - | - | (798,929) | (798,929) | - | (798,929) |
Final Dividends for year 2023 : Scrip | 1,018,634 | - | - | - | - | - | - | (1,198,393) | (179,759) | - | (179,759) |
Dividend attributable to non controlling interest | - | - | - | - | - | - | - | - | - | (40,228) | (40,228) |
Reversal of dividends declared in prior periods | - | - | - | - | - | - | - | 17,155 | 17,155 | - | 17,155 |
Balance as at 30 June 2024 | 20,738,231 | 3,046,479 | 1,747,711 | 44,479 | 1,826,141 | 488,772 | - | 46,521,535 | 75,431,982 | 1,391,111 | 76,823,093 |
Balance as at 01 January 2025 | 21,756,865 | 3,521,479 | 1,815,166 | 148,428 | 2,917,910 | 292,075 | 4,014,429 | 48,276,283 | 82,742,635 | 1,459,588 | 84,202,223 |
Total Comprehensive Income for the period | |||||||||||
Profit for the period | - | - | - | - | - | - | - | 4,488,120 | 4,488,120 | 21,928 | 4,510,048 |
Other Comprehensive Income before Tax | - | - | - | - | 164,457 | (456,371) | - | 132,203 | (159,711) | 1,549 | (158,163) |
Tax on Other Comprehensive Income | - | - | - | - | (38,122) | 136,911 | - | - | 98,789 | - | 98,789 |
Total Comprehensive Income for the period | - | - | - | - | 126,335 | (319,460) | - | 4,620,323 | 4,427,198 | 23,477 | 4,450,674 |
Transactions with equity holders | |||||||||||
Issue of Shares | 205,029 | - | - | (61,123) | - | - | - | - | 143,906 | - | 143,906 |
Transfer to statutory reserve fund | - | - | - | - | - | - | - | - | - | - | - |
Transfer to special reserve on SLISBs - Step up Bonds | - | - | - | - | - | - | 103,394 | (103,394) | - | - | - |
Adjustment to share based payment reserves | - | - | - | 19,969 | - | - | - | - | 19,969 | - | 19,969 |
Final Dividends for year 2024 - Cash | - | - | - | - | - | - | - | (2,081,455) | (2,081,455) | - | (2,081,455) |
Final Dividends for year 2024 - Scrip | 1,061,542 | - | - | - | - | - | - | (1,248,873) | (187,331) | - | (187,331) |
Dividend attributable to non controlling interest | - | - | - | - | - | - | - | - | - | (32,218) | (32,218) |
Reversal of dividends declared in prior periods | - | - | - | - | - | - | - | 13,628 | 13,628 | - | 13,628 |
Balance as at 30 June 2025 | 23,023,436 | 3,521,479 | 1,815,166 | 107,273 | 3,044,245 | (27,385) | 4,117,823 | 49,476,512 | 85,078,549 | 1,450,847 | 86,529,396 |
STATEMENT OF CASH FLOW | ||||
For the period ended 30 June | BANK | GROUP | ||
2025 LKR '000 | 2024 LKR '000 | 2025 LKR '000 | 2024 LKR '000 | |
Cash flows from operating activities | ||||
Interest received | 43,331,945 | 45,163,707 | 43,473,724 | 45,308,136 |
Fee based income received | 3,747,243 | 3,462,605 | 4,797,057 | 4,411,971 |
Dividend income received | 118,014 | - | 147,688 | 25,487 |
Other Operating income received | 1,494,216 | (318,460) | 1,531,340 | (261,354) |
Interest paid | (24,151,445) | (38,076,232) | (24,145,694) | (38,076,035) |
Personnel costs paid | (4,719,468) | (4,186,953) | (5,090,790) | (4,463,275) |
Other expenses paid | (3,403,572) | (3,549,343) | (3,892,543) | (4,120,302) |
Operating profit before changes in operating assets and liabilities | 16,416,933 | 2,495,324 | 16,820,782 | 2,824,628 |
(Increase)/decrease in operating assets | ||||
Deposits held for regulatory or monitory control purposes | 3,338,877 | (1,850,490) | 3,338,877 | (1,850,490) |
Financial Assets at amortised cost -loans and receivables to other customers | (101,084,147) | (17,677,222) | (101,084,147) | (17,677,222) |
Net (increase)/decrease in operating assets | (3,916,034) | 395,005 | (4,002,380) | 405,715 |
(Increase)/decrease in operating liabilities | ||||
Financial liabilities at amortised cost - due to depositors | 64,610,596 | 12,346,131 | 64,950,070 | 12,497,639 |
Financial liabilities at amortised cost - due to debt securities holders | 46,866,069 | (7,033,631) | 46,866,069 | (7,033,631) |
Financial liabilities at amortised cost - due to other borrowers | 5,307,553 | (3,586,929) | 5,307,553 | (3,586,929) |
Repayment of principal portion of lease liabilities | (282,333) | (237,241) | (294,473) | (245,436) |
Net increase/(decrease) in other liabilities | (92,203) | 66,420 | (248,045) | 176,739 |
Net cash generated/(used in) from operating activities before taxation | 31,165,311 | (15,082,633) | 31,654,306 | (14,488,987) |
Tax on Financial Services paid | (1,858,958) | (1,515,569) | (1,858,958) | (1,515,569) |
Income taxes paid | (1,795,290) | (4,254,443) | (1,955,015) | (4,399,400) |
Net cash generated/(used in) from operating activities | 27,511,063 | (20,852,645) | 27,840,333 | (20,403,956) |
Cash flows from investing activities | ||||
Net changes in financial investments | (33,682,736) | 14,625,163 | (33,645,007) | 14,486,981 |
Purchase of Intangible assets | - | (132,480) | (10,331) | (140,368) |
Purchase of property, plant & equipment | (539,882) | (305,730) | (598,399) | (348,541) |
Proceeds from sale of property, plant & equipment | 3,780 | 3,355 | 3,806 | 3,559 |
Net cash generated /(used in) from investing activities | (34,218,838) | 14,190,308 | (34,249,931) | 14,001,631 |
Cash flows from financing activities | ||||
Proceeds from issue of ordinary of shares | 143,906 | (5,561,200) | 143,906 | (5,561,200) |
Interest paid on debts securities issued | (687,658) | (1,279,534) | (687,658) | (1,279,534) |
Dividends paid to shareholders of the Bank | (1,744,673) | (696,390) | (1,744,673) | (696,390) |
Net cash provided by /(used in) financing activities | (2,288,425) | (7,537,124) | (2,288,425) | (7,537,124) |
Net increase in cash and cash equivalents | (8,996,200) | (14,199,461) | (8,698,023) | (13,939,449) |
Cash and cash equivalents at the beginning of the period | 40,136,459 | 61,844,117 | 40,781,208 | 62,324,278 |
Cash and cash equivalents at the end of the period | 31,140,259 | 47,644,656 | 32,083,185 | 48,384,829 |
Reconciliation of cash and cash equivalents | ||||
Cash and cash equivalents | 16,869,185 | 24,269,279 | 17,812,111 | 25,009,452 |
Placements with banks | 14,240,156 | 23,337,709 | 14,240,156 | 23,337,709 |
Cash and cash equivalents at the end of the period (Net) | 31,109,341 | 47,606,988 | 32,052,267 | 48,347,161 |
Add: Impairment allowance | 30,918 | 37,668 | 30,918 | 37,668 |
Cash and cash equivalents at the end of the period (Gross) | 31,140,259 | 47,644,656 | 32,083,185 | 48,384,829 |
For the period ended 30 June | SEGMENTAL ANALYSIS- GROUP Banking Capital Markets | Property Investment | Others | Consolidated | ||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||
LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | LKR '000 | |||
Revenue | ||||||||||||
Interest Income | 42,308,232 | 45,980,187 | 120,249 | 115,464 | - | 1,435 | - | - | 42,428,481 | 46,097,086 | ||
Fee and commission income | 3,691,689 | 3,359,804 | 885,278 | 839,982 | 98,327 | 73,351 | 27,155 | 22,746 | 4,702,450 | 4,295,883 | ||
Net gain/(loss) from trading | 578,755 | 570,782 | - | - | - | - | - | - | 578,755 | 570,782 | ||
Net gain/(loss) from financial assets at fair value through profit or loss | (8,781) | 506,666 | 79,254 | 137,134 | - | - | - | - | 70,473 | 643,800 | ||
Net gains/(losses) from derecognition of financial assets - Fair Value | ||||||||||||
through Profit or Loss | 86,214 | - | 32,342 | - | - | - | - | - | 118,556 | - | ||
Net gains/(losses) from derecognition of financial assets - Fair Value | ||||||||||||
Through Other Comprehensive Income | 468,416 | 2,790,191 | 78 | - | - | - | - | - | 468,494 | 2,790,191 | ||
Other Operating Income | 591,563 | (778,669) | (4,145) | (19,063) | - | - | - | - | 587,418 | (797,732) | ||
Total revenue from external customers | 47,716,088 | 52,428,961 | 1,113,056 | 1,073,517 | 98,327 | 74,786 | 27,155 | 22,746 | 48,954,626 | 53,600,010 | ||
Inter-segment Revenue | - | - | 20,067 | 24,836 | 34,983 | 36,931 | - | - | 55,050 | 61,767 | ||
Total Revenue | 47,716,088 | 52,428,961 | 1,133,123 | 1,098,353 | 133,310 | 111,717 | 27,155 | 22,746 | 49,009,676 | 53,661,777 | ||
Impairment (charge) /reversal for | ||||||||||||
Loans & other losses | (4,479,866) | (8,388,243) | - | - | - | - | - | - | (4,479,866) | (8,388,243) | ||
Segment expenses | (34,573,757) | (37,456,783) | (758,056) | (760,800) | (21,452) | (14,403) | (18,727) | (25,497) | (35,371,992) | (38,257,483) | ||
Total segment expenses | (39,053,623) | (45,845,026) | (758,056) | (760,800) | (21,452) | (14,403) | (18,727) | (25,502) | (39,851,860) | (46,645,728) | ||
Inter-segment expenses | - | - | - | - | ||||||||
Segment results | 8,662,465 | 6,583,935 | 375,067 | 337,553 | 111,858 | 97,314 | 8,428 | (2,756) | 9,157,816 | 7,016,049 | ||
Income tax expenses | - | - | - | - | - | - | - | - | 2,418,385 | 1,755,208 | ||
Taxes on financial services | - | - | - | - | - | - | - | - | 2,229,383 | 1,800,000 | ||
Profit after taxation | 4,510,048 | 3,460,841 | ||||||||||
Other information | ||||||||||||
Segment assets | 916,667,191 | 764,464,305 | 4,450,941 | 3,703,958 | 4,063,979 | 3,630,644 | 60,496 | 48,169 | 925,242,607 | 771,847,076 | ||
Consolidated total assets | 925,242,607 | 771,847,076 | ||||||||||
Segment liabilities | 836,688,788 | 693,144,159 | 959,835 | 867,553 | 1,039,199 | 983,223 | 25,389 | 29,048 | 838,713,211 | 695,023,983 | ||
Consolidated total liabilities | 838,713,211 | 695,023,983 | ||||||||||
Segmental Cash flows | ||||||||||||
Cash flows from operating activities | 27,511,063 | (20,852,645) | 334,011 | 485,278 | 2,627 | (20,247) | (7,369) | (16,342) | 27,840,333 | (20,403,956) | ||
Cash flows from investing activities | (34,218,838) | 14,114,972 | (16,419) | (170,270) | (14,674) | (18,408) | - | - | (34,249,931) | 14,001,631 | ||
Classification: Public | Cash flows from financing activities | (2,288,425) | (7,537,124) | (0) | - | 0 | - | - | - | (2,288,425) | (7,537,124) | 10 |
Notes to the Financial Statements | ||
1 | The figures are extracted from the unaudited financial statements of the Bank and the Group. | |
The financial statements of the Bank and the Group have been prepared based on the accounting policies and methods which is in line with the requirements of Sri Lanka | ||
Accounting Standards (SLFRS / LKAS) issued by the Institute of Chartered Accountants of Sri Lanka. | ||
There are no changes to the accounting policies and methods of computation since the publication of the last Annual Report. | ||
2 | These Financial Statements also comply with Sri Lanka Accounting Standard (LKAS) 34 - "Interim Financial Reporting" and provided the information as required in terms of | |
Rule 7.4 of the Colombo Stock Exchange and Circular No 05 of 2024 of Central Bank of Sri Lanka. | ||
3 | Expected Credit Losses | |
The Bank assessed the Expected Credit Losses (ECL) of credit facilities based on two approaches of individual and collective basis. The customers who have been identified | ||
as individually significant were assessed under individual basis and they were staged based on the identified indicators of increase in credit risks. | ||
The Expected Credit Losses assessed on collective impairment approach were based on Probability of Default (PD), Loss Given Default (LGD) and the Economic Factor | ||
Adjustment (EFA) by applying the recent forecasts and projections. Further, the Bank has accounted for management overlays to mitigate any expected losses by | ||
downgrading the staging of facilities included in the identified risk elevated industries where necessary to capture significant increases in credit risk due to stressed | ||
economic conditions. | ||
4 | From total debt investment portfolio ,the Bank has reclassified the Debt portfolio amounting to LKR 37.7 Bn, consisting of Sri Lanka Government Treasury Bonds of LKR 32.6 | |
Bn and Sri Lanka USD Sovereign Bonds of USD 14 Mn held as "Fair Value through Other Comprehensive Income" to "Amortised cost" with effect from 01 April 2022. This | ||
reclassification is a one-time event in accordance with the Statement of Alternative Treatment (SoAT) on reclassification of debt portfolio issued by the Institute of | ||
Chartered Accountants of Sri Lanka and in line with the requirements of the SLFR 9-Financial Instruments paragraph 5.6.5. Sri Lanka USD Sovereign Bonds has been | ||
restructured in December 2024. | ||
If these investments continued to be carried at fair value through other comprehensive income, the fair value of the remaining portfolio as at 30 June 2025 would have | ||
amounted to LKR 3.3 Bn and would have resulted in the recognition of fair value gain of LKR 126 Mn in other comprehensive income during the period. | ||
5 | Dividends | |
On 03 March 2025, the Board of Directors approved and declared a final Dividend of LKR 8.00 per share, of which LKR 5.00 was in the form of cash dividend and the balance | ||
LKR 3.00 was in the form of scrip dividend for the financial year ended 31 December 2024 . Accordingly 9,415,842 ordinary voting shares have been listed as scrip dividends | ||
on 24 March 2025. As a result, the stated capital of the Bank increased to LKR 22.9 Bn (31 December 2024 - LKR 21.7 Bn). | ||
6 | Special Customer Arrangements within Loans, Advances, and Deposits | |
As at the reporting date, the Bank's portfolio of loans & advances, and deposits includes a total amount of LKR 50.3 billion ( 2024 year-end: LKR19.6 billion), which has | ||
been received from customer(s) under a special arrangement. This amount represents funds held on behalf of customer(s) in respect of a potential netting arrangement, | ||
wherein both lending and deposit positions are maintained concurrently. | ||
These arrangements are subject to specific contractual terms that may allow for netting of obligations between the Bank and the customer(s) in the event of certain trigger | ||
events. | ||
7 | There were no other events that require adjustment to the Financial Statements or disclosure in the Financial Statements that has occurred subsequent to the date of the | |
Statement of the Financial Position of the Bank and the Group . | ||
Classification: Public
11
NATIONAL DEVELOPMENT BANK PLC
Notes to the Financial Statements | ||||
8. ANALYSIS OF LOANS & ADVANCES, COMMITMENTS, CONTINGENCIES AND IMPAIRMENT AS AT 30 JUNE 2025 | ||||
Bank | Group | |||
As at | As at | As at | As at | |
8.1 Product wise Gross Loans and Receivables | 30/06/2025 LKR '000 | 31/12/2024 LKR '000 | 30/06/2025 LKR '000 | 31/12/2024 LKR '000 |
By product-Domestic Currency | ||||
Term loans | 101,272,225 | 100,672,026 | 101,272,225 | 100,672,026 |
Medium and short term loans | 94,148,843 | 84,404,438 | 94,148,843 | 84,404,438 |
Overdrafts | 62,016,842 | 59,944,846 | 62,016,842 | 59,944,846 |
Trade Finance | 23,287,009 | 18,928,605 | 23,287,009 | 18,928,605 |
Consumer loans | 52,742,470 | 46,510,957 | 52,742,470 | 46,510,957 |
Lease rentals receivable and Hire Purchase | 24,645,946 | 22,666,898 | 24,645,946 | 22,666,898 |
Housing loans | 17,057,272 | 16,885,775 | 17,057,272 | 16,885,775 |
Pawning | 21,386,577 | 16,370,797 | 21,386,577 | 16,370,797 |
Islamic Banking facilities | 14,608,220 | 10,003,994 | 14,608,220 | 10,003,994 |
Credit cards | 8,504,504 | 8,670,182 | 8,504,504 | 8,670,182 |
AF Loans | 3,375,221 | 1,916,540 | 3,375,221 | 1,916,540 |
Staff loans | 3,374,709 | 3,292,370 | 3,444,608 | 3,365,722 |
Sub total | 426,419,837 | 390,267,428 | 426,489,737 | 390,340,780 |
By product-Foreign Currency | ||||
Term loans | 70,780,560 | 38,617,146 | 70,780,560 | 38,617,146 |
Overdrafts | 35,714,453 | 7,357,932 | 35,714,453 | 7,357,932 |
Medium and short term loans | 29,512,901 | 26,288,947 | 29,512,901 | 26,288,947 |
Trade Finance | 38,647,627 | 39,341,594 | 38,647,627 | 39,341,594 |
Islamic Banking facilities | 6,372,363 | 7,861,113 | 6,372,363 | 7,861,113 |
Housing loans | 32,158 | 42,870 | 32,158 | 42,870 |
Sub total | 181,060,062 | 119,509,603 | 181,060,062 | 119,509,603 |
Total | 607,479,899 | 509,777,031 | 607,549,799 | 509,850,383 |
Bank | Group | |||
As at | As at | As at | As at | |
8.2 Product wise commitments and contingencies considered for Impairment | 30/06/2025 | 31/12/2024 | 30/06/2025 | 31/12/2024 |
By product- Domestic Currency | LKR '000 | LKR '000 | LKR '000 | LKR '000 |
Guarantees | 32,316,111 | 41,450,872 | 32,311,324 | 41,046,086 |
Performance Bonds | 7,772,466 | 8,185,025 | 7,772,466 | 8,185,025 |
Documentary Credits | 1,184,578 | 935,008 | 1,184,578 | 935,008 |
Acceptances | 536,342 | 391,671 | 536,342 | 391,671 |
Undrawn commitments | 168,165,937 | 145,480,200 | 168,165,937 | 145,230,200 |
Sub Total | 209,975,434 | 196,442,776 | 209,970,647 | 195,787,990 |
By product- Foreign Currency | ||||
Guarantees | 5,690,370 | 4,022,566 | 5,690,370 | 4,022,566 |
Performance Bonds | 2,864,372 | 2,602,881 | 2,864,372 | 2,602,881 |
Documentary Credits | 20,041,852 | 8,922,803 | 20,041,852 | 8,922,803 |
Acceptances | 8,537,565 | 8,301,696 | 8,537,565 | 8,301,696 |
Undrawn commitments | 999,877 | 1,160,231 | 1,746,491 | 1,889,469 |
Sub Total | 38,134,036 | 25,010,177 | 38,880,650 | 25,739,415 |
Total | 248,109,470 | 221,452,953 | 248,851,297 | 221,527,405 |
As at 30/06/2025 LKR '000 | As at 31/12/2024 LKR '000 | As at 30/06/2025 LKR '000 | As at 31/12/2024 LKR '000 | |
Gross loans and advances ,Commitments and Contingencies | 855,589,369 | 731,229,984 | 856,401,096 | 731,377,788 |
(Less): Accumulated impairment under stage 1 | 7,090,714 | 6,095,524 | 7,090,714 | 6,095,524 |
Accumulated impairment under stage 2 | 4,338,949 | 5,394,651 | 4,338,949 | 5,394,651 |
Accumulated impairment under stage 3 | 41,304,714 | 39,443,878 | 41,304,714 | 39,443,878 |
Net value of loans and advances, commitments and contingencies | 802,854,992 | 680,295,931 | 803,666,719 | 680,443,735 |
Bank | Group | |||
As at | As at | As at | As at | |
30/06/2025 | 31/12/2024 | 30/06/2025 | 31/12/2024 | |
8.3 Movement of impairment during the period | LKR '000 | LKR '000 | LKR '000 | LKR '000 |
Under stage 1 | ||||
Balance at 1 January | 6,095,524 | 4,751,122 | 6,095,524 | 4,751,122 |
Charge/(Write back) to Statement of Profit or Loss | 995,190 | 1,344,402 | 995,190 | 1,344,402 |
Write-off during the period | - | - | - | - |
Closing balance | 7,090,714 | 6,095,524 | 7,090,714 | 6,095,524 |
Under stage 2 | ||||
Balance at 1 January | 5,394,651 | 6,307,902 | 5,394,651 | 6,307,902 |
Charge/(Write back) to Statement of Profit or Loss | (1,055,702) | (913,251) | (1,055,702) | (913,251) |
Write-off during the period | - | - | - | - |
Closing balance | 4,338,949 | 5,394,651 | 4,338,949 | 5,394,651 |
Under stage 3 | ||||
Balance at 1 January | 39,443,878 | 34,009,586 | 39,443,878 | 34,009,586 |
Charge/(Write back) to Statement of Profit or Loss | 4,284,553 | 12,854,071 | 4,284,553 | 12,854,071 |
Write-off during the period | (2,423,717) | (7,419,779) | (2,423,717) | (7,419,779) |
Other movement | - | - | - | - |
Closing balance | 41,304,714 | 39,443,878 | 41,304,714 | 39,443,878 |
9. ANALYSIS OF DEPOSITS | Bank | Group | ||
Due to Other Customers - By product | As at 30/06/2025 LKR '000 | As at 31/12/2024 LKR '000 | As at 30/06/2025 LKR '000 | As at 31/12/2024 LKR '000 |
By product-Domestic Currency | ||||
Demand deposits | 47,177,480 | 42,852,398 | 47,168,994 | 42,804,180 |
Savings deposits | 95,185,670 | 81,378,640 | 95,104,850 | 81,016,288 |
Time deposits | 349,392,709 | 346,074,563 | 349,255,003 | 345,910,656 |
Other deposits | 1,754,877 | 997,857 | 1,754,877 | 997,857 |
Sub total | 493,510,736 | 471,303,458 | 493,283,725 | 470,728,981 |
By product- Foreign Currency | ||||
Demand deposits | 41,578,734 | 10,270,852 | 41,578,734 | 10,269,393 |
Savings deposits | 26,196,009 | 22,109,701 | 26,161,030 | 22,089,374 |
Time deposits | 134,406,196 | 127,545,145 | 134,406,196 | 127,539,942 |
Other deposits | 383,513 | 453,770 | 383,513 | 453,770 |
Sub total | 202,564,452 | 160,379,468 | 202,529,472 | 160,352,480 |
Total | 696,075,188 | 631,682,926 | 695,813,197 | 631,081,461 |
Selected Performance Indicators (As per regulatory Reporting) | BANK | GROUP | ||
As at 30/06/2025 | As at 31/12/2024 | As at 30/06/2025 | As at 31/12/2024 | |
Regulatory Capital Adequacy (LKR '000) | ||||
Common Equity Tier 1 Capital | 63,012,546 | 62,094,115 | 67,082,197 | 66,298,084 |
Tier 1 Capital | 63,012,546 | 62,094,115 | 67,082,197 | 66,298,084 |
Total Capital | 84,911,248 | 86,665,636 | 88,888,416 | 90,776,819 |
Regulatory Capital Ratios (%) | ||||
Common Equity Tier 1 Capital Ratio (Minimum Requirement - 7%) | 12.29 | 13.68 | 12.79 | 14.24 |
Tier 1 Capital Ratio (Minimum Requirement - 8.5% ) | 12.29 | 13.68 | 12.79 | 14.24 |
Total Capital Ratio (Minimum Requirement - 12.5%) | 16.56 | 19.09 | 16.95 | 19.50 |
Basel III Leverage Ratio ( Minimum Requirement - 3%) | 6.60 | 7.46 | 6.96 | 7.89 |
Regulatory Liquidity | ||||
Liquidity Coverage Ratio (%) - Rupee (Minimum Requirement 100%) | 330.89 | 358.12 | N/A | N/A |
Liquidity Coverage Ratio (%) - All Currency (Minimum Requirement 100%) | 253.80 | 308.26 | N/A | N/A |
Net stable Funding Ratio (%) ( Minimum Requirement 100% ) | 124.46 | 152.43 | N/A | N/A |
Asset Quality (Quality of the Loan Portfolio) | ||||
Impaired Loans (Stage 3) to Total Loans Ratio (%) | 5.07 | 5.18 | 5.07 | 5.18 |
Impairment (stage 3) to Stage 3 loans Ratio (%) | 53.35 | 54.48 | 53.35 | 54.48 |
Income and Profitability | ||||
Earnings Per Share (annualised ) (LKR) | 19.65 | 21.25 | 21.23 | 23.05 |
Return on Equity (%) | 10.62 | 12.22 | 10.76 | 12.46 |
Return on Average Assets (after Tax (%) | 0.98 | 1.15 | 1.04 | 1.23 |
Return on Average Assets (before Tax (%)) | 2.00 | 3.09 | 2.11 | 3.23 |
Net interest margin (%) | 3.99 | 4.34 | 3.98 | 4.34 |
Cost to Income Ratio (%) | 41.15 | 36.91 | 42.21 | 38.04 |
Debt Security - Related Ratios | ||||
Interest Cover (Times) | 1.67 | 1.64 | 1.67 | 1.64 |
Debt to Equity (Times) | 10.25 | 9.01 | 9.60 | 8.45 |
Memorandum Information | ||||
Credit Rating | A(lka) / Stable Outlook | A(lka) / Stable Outlook | N/A | N/A |
Number of Employees | 2,882 | 2,920 | N/A | N/A |
Number of Branches | 113 | 113 | N/A | N/A |
MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 30 JUNE 2025 - BANK (LKR '000) | |||||
At fair value through | At amortised | At fair value through Other | Others | Total | |
ASSETS | profit or loss | cost | comprehensive income | ||
Cash and cash equivalents | - | 16,869,185 | - | - | 16,869,185 |
Balances with the Central Bank of Sri Lanka | - | 4,714,481 | - | - | 4,714,481 |
Placements with banks | - | 14,240,156 | - | - | 14,240,156 |
Derivative Financial Instruments | 930,637 | - | - | - | 930,637 |
Financial assets recognized through profit or loss measured at fair | |||||
value | 13,216,376 | - | - | - | 13,216,376 |
Financial assets at amortised cost -loans and receivables to other | |||||
customers | - | 557,020,839 | - | - | 557,020,839 |
Financial Assets at amortised cost - debt and other instruments | - | 204,849,296 | - | - | 204,849,296 |
Financial assets measured at fair value through other | |||||
comprehensive income | - | - | 81,504,181 | - | 81,504,181 |
Other Financial Assets | - | 1,406,153 | - | - | 1,406,153 |
Total Financial Assets | 14,147,013 | 799,100,110 | 81,504,181 | - | 894,751,304 |
At fair value through | Amortized cost | Total | |||
LIABILITIES | profit or loss | ||||
Due to Banks | - | 10,879,275 | 10,879,275 | ||
Derivative Financial Instruments | 68,032 | - | 68,032 | ||
Financial Liabilities at amortised cost -due to depositors | - | 696,075,188 | 696,075,188 | ||
Financial Liabilities at amortised cost | |||||
- due to debt securities holders | - | 54,868,919 | 54,868,919 | ||
- due to other borrowers | - | 20,695,211 | 20,695,211 | ||
Debt securities issued | - | 34,904,678 | 34,904,678 | ||
Other Financial Liabilities | - | 2,700,426 | 2,700,426 | ||
Total Financial Liabilities | 68,032 | 820,123,697 | 820,191,729 | ||
MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 30 JUNE 2025 - GROUP (LKR '000) | |||||
At fair value through | At amortised | At fair value through Other | Others | Total | |
ASSETS | profit or loss | cost | comprehensive income | ||
Cash and cash equivalents | - | 17,812,111 | - | - | 17,812,111 |
Balances with the Central Bank of Sri Lanka | - | 4,714,481 | - | - | 4,714,481 |
Placements with banks | - | 14,240,156 | - | - | 14,240,156 |
Derivative Financial Instruments | 930,637 | - | - | - | 930,637 |
Financial assets recognized through profit or loss measured at fair | |||||
value | 16,243,422 | - | - | - | 16,243,422 |
Financial assets at amortised cost -loans and receivables to other | |||||
customers | - | 557,090,738 | - | - | 557,090,738 |
Financial Assets at amortised cost - debt and other instruments | - | 205,302,434 | - | - | 205,302,434 |
Financial Assets measured at fair value through Other | |||||
comprehensive income | - | - | 81,841,916 | - | 81,841,916 |
Other Financial Assets | - | 1,680,789 | - | - | 1,680,789 |
Total Financial Assets | 17,174,059 | 800,840,709 | 81,841,916 | - | 899,856,684 |
At fair value through | Amortized cost | Total | |||
LIABILITIES | profit or loss | ||||
Due to Banks | - | 10,879,275 | 10,879,275 | ||
Derivative Financial Instruments | 68,032 | - | 68,032 | ||
Financial Liabilities at amortised cost -due to depositors | - | 695,813,197 | 695,813,197 | ||
Financial Liabilities at amortised cost | |||||
- due to debt securities holders | - | 54,868,919 | 54,868,919 | ||
- due to other borrowers | - | 20,695,211 | 20,695,211 | ||
Debt securities issued | - | 34,904,678 | 34,904,678 | ||
Other Financial Liabilities | - | 3,137,873 | 3,137,873 | ||
Total Financial Liabilities | 68,032 | 820,299,153 | 820,367,185 | ||
MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2024 - BANK (LKR '000) | |||||
At fair value through | At amortised | comprehensive income | Others | Total | |
ASSETS | profit or loss | cost | |||
Cash and cash equivalents | - | 18,037,627 | - | - | 18,037,627 |
Balances with the Central Bank of Sri Lanka | - | 8,053,358 | - | - | 8,053,358 |
Placements with banks | - | 22,098,832 | - | - | 22,098,832 |
Derivative Financial Instruments | 1,146,236 | - | - | - | 1,146,236 |
Financial assets recognized through profit or loss measured at fair | |||||
value | 6,776,131 | - | - | - | 6,776,131 |
Financial assets at amortised cost -loans and receivables to other | |||||
customers | - | 460,707,258 | - | - | 460,707,258 |
Financial Assets at amortised cost - debt and other instruments | - | 166,190,761 | - | - | 166,190,761 |
Financial assets measured at fair value through other | |||||
comprehensive income | - | - | 94,245,415 | - | 94,245,415 |
Other Financial Assets | - | 1,046,533 | - | - | 1,046,533 |
Total Financial Assets | 7,922,367 | 676,134,369 | 94,245,415 | - | 778,302,151 |
At fair value through | Amortized cost | Total | |||
LIABILITIES | profit or loss | ||||
Due to Banks | - | 4,841,342 | 4,841,342 | ||
Derivative Financial Instruments | 344,586 | - | 344,586 | ||
Financial Liabilities at amortised cost -due to depositors | - | 631,682,926 | 631,682,926 | ||
Financial Liabilities at amortised cost | |||||
- due to debt securities holders | - | 8,002,850 | 8,002,850 | ||
- due to other borrowers | - | 22,023,798 | 22,023,798 | ||
Debt securities issued | - | 33,564,708 | 33,564,708 | ||
Other Financial Liabilities | - | 2,467,698 | 2,467,698 | ||
Total Financial Liabilities | 344,586 | 702,583,322 | 702,927,908 | ||
MEASUREMENT OF FINANCIAL INSTRUMENTS AS AT 31 DECEMBER 2024 - GROUP (LKR '000) | |||||
At fair value through | At amortised | At fair value through Other | Others | Total | |
ASSETS | profit or loss | cost | comprehensive income | ||
Cash and cash equivalents | - | 18,682,376 | - | - | 18,682,376 |
Balances with the Central Bank of Sri Lanka | - | 8,053,358 | - | - | 8,053,358 |
Placements with banks | - | 22,098,832 | - | - | 22,098,832 |
Derivative Financial Instruments | 1,146,236 | - | - | - | 1,146,236 |
Financial assets recognized through profit or loss measured at fair | |||||
value | 9,905,171 | - | - | - | 9,905,171 |
Financial assets at amortised cost -loans and receivables to other | |||||
customers | - | 460,780,610 | - | - | 460,780,610 |
Financial Assets at amortised cost - debt and other instruments | - | 166,355,792 | - | - | 166,355,792 |
Financial Assets measured at fair value through Other | |||||
comprehensive income | - | - | 94,659,106 | - | 94,659,106 |
Other Financial Assets | - | 1,321,169 | - | - | 1,321,169 |
Total Financial Assets | 11,051,407 | 677,292,137 | 94,659,106 | - | 783,002,650 |
At fair value through | Amortized cost | Total | |||
LIABILITIES | profit or loss | ||||
Due to Banks | - | 4,841,342 | 4,841,342 | ||
Derivative Financial Instruments | 344,586 | - | 344,586 | ||
Financial Liabilities at amortised cost -due to depositors | - | 631,081,461 | 631,081,461 | ||
Financial Liabilities at amortised cost | |||||
- due to debt securities holders | - | 8,002,850 | 8,002,850 | ||
- due to other borrowers | - | 22,023,798 | 22,023,798 | ||
Debt securities issued | - | 33,564,708 | 33,564,708 | ||
Other Financial Liabilities | - | 2,905,145 | 2,905,145 | ||
Total Financial Liabilities | 344,586 | 702,419,304 | 702,763,890 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Values of Financial Instruments are determined according to the following hierarchy as described below:
Level 1 - quoted market price (unadjusted): financial instruments with quoted prices in active markets
Level 2 - valuation techniques using observable inputs: financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments are valued using models where all significant inputs are observable.
Level 3 - valuation techniques with significant unobservable inputs: This category includes all instruments valued using valuation techniques where one or more significant inputs are unobservable.
There were no material transfers between levels of fair value hierarchy during the current period of 2025. The Bank did not changed the valuation models and assumptions used to measure the fair values of Level 03 financial instruments during the year ended 31 December 2024.
FINANCIAL ASSETS & LIABILITIES MEASURED AT FAIR VALUE - FAIR VALUE HIERARCHY
Bank | 2025 Fair Value Measurement Using | 2024 Fair Value Measurement Using | ||||||
Quoted prices in active markets Level 1 30/06/2025 LKR '000 | Significant observable inputs Level 2 30/06/2025 LKR '000 | Significant unobservable inputs Level 3 30/06/2025 LKR '000 | Total 30/06/2025 LKR '000 | Quoted prices in active markets Level 1 31/12/2024 LKR '000 | Significant observable inputs Level 2 31/12/2024 LKR '000 | Significant unobservable inputs Level 3 31/12/2024 LKR '000 | Total 31/12/2024 LKR '000 | |
Financial Assets Derivative Financial Instruments Financial assets recognized through profit or loss measured at fair value Financial assets measured at fair value through other comprehensive income | -13,216,376 77,393,223 | 930,637 -3,943,245 | - -167,713 | 930,637 13,216,376 81,504,181 | -6,776,131 89,393,791 | 1,146,236 -5,222,888 | - -167,713 | 1,146,236 6,776,131 94,245,415 |
Total Financial Assets | 90,609,599 | 4,873,882 | 167,713 | 95,651,194 | 96,169,922 | 6,369,124 | 167,713 | 102,167,782 |
Financial Liabilities Derivative Financial Instruments | - | 68,032 | - | 68,032 | - | 344,586 | - | 344,586 |
Total Financial Liabilities | - | 68,032 | - | 68,032 | - | 344,586 | - | 344,586 |
Group | 2025 Fair Value Measurement Using | 2024 Fair Value Measurement Using | ||||||
Quoted prices in active markets Level 1 30/06/2025 LKR '000 | Significant observable inputs Level 2 30/06/2025 LKR '000 | Significant unobservable inputs Level 3 30/06/2025 LKR '000 | Total 30/06/2025 LKR '000 | Quoted prices in active markets Level 1 31/12/2024 LKR '000 | Significant observable inputs Level 2 31/12/2024 LKR '000 | Significant unobservable inputs Level 3 31/12/2024 LKR '000 | Total 31/12/2024 LKR '000 | |
Financial Assets Derivative Financial Instruments Financial assets recognized through profit or loss measured at fair value Financial assets measured at fair value through other comprehensive income | -15,691,533 77,554,292 | 930,637 -4,119,911 | -551,889 167,713 | 930,637 16,243,422 81,841,916 | -9,353,282 89,856,944 | 1,146,236 -5,381,379 | -464,042 167,713 | 1,146,236 9,905,171 94,659,106 |
Total Financial Assets | 93,245,825 | 5,050,548 | 719,602 | 99,015,975 | 99,210,226 | 5,942,173 | 631,755 | 105,710,513 |
Financial Liabilities Derivative Financial Instruments | - | 68,032 | - | 68,032 | - | 344,586 | - | 344,586 |
Total Financial Liabilities | - | 68,032 | - | 68,032 | - | 344,586 | - | 344,586 |
SHARE INFORMATION
SHARE PRICE
As at | 30/06/2025 | 31/12/2024 |
Number of shares | 426,728,096 | 415,513,426 |
Last traded price (LKR) | 120.25 | 113.25 |
For the quarter ended | 30/06/2025 | 31/12/2024 |
Highest price per share (LKR) | 123.25 | 114.00 |
Lowest price per share (LKR) | 94.00 | 76.00 |
TOP 20 REGISTERED SHAREHOLDERS OF NATIONAL DEVELOPMENT BANK PLC AS AT 30.06.2025
Name | Number of Shares | % | |
1 | STANDARD CHARTERED BANK MAURITIUS S/A NORFUND | 42,448,674 | 9.95 |
2 | EMPLOYEE'S PROVIDENT FUND | 40,384,935 | 9.46 |
3 | BANK OF CEYLON NO. 1 ACCOUNT | 33,772,098 | 7.91 |
4 | RICHARD PIERIS AND CO LTD A/C NO.01 | 26,362,399 | 6.18 |
5 | SRI LANKA INSURANCE CORPORATION LTD-GENERAL FUND | 25,823,505 | 6.05 |
6 | SRI LANKA INSURANCE CORPORATION LTD-LIFE FUND | 21,469,210 | 5.03 |
7 | SOFTLOGIC LIFE INSURANCE PLC ACCOUNT NUMBER 03/LIFE SHAREHOLDERS FUND | 20,607,541 | 4.83 |
8 | EMPLOYEES TRUST FUND BOARD | 14,412,776 | 3.38 |
9 | BNYM RE-TERRA GLOBAL OPPORTUNITY FUND, L.P | 13,615,405 | 3.19 |
10 | DR. S. YADDEHIGE | 11,974,368 | 2.81 |
11 | HATTON NATIONAL BANK PLC A/C NO 1 | 11,778,400 | 2.76 |
12 | PERPETUAL TREASURIES LIMITED | 10,395,291 | 2.44 |
13 | SBI VEN HOLDINGS PTE LTD | 10,314,556 | 2.42 |
14 | COMMERCIAL BANK OF CEYLON PLC/METROCORP (PVT) LTD | 9,036,816 | 2.12 |
15 | SOFTLOGIC LIFE INSURANCE PLC-A/C NO. 05 (NON-PARTICIPATING FUND) | 7,492,490 | 1.76 |
16 | AKBAR BROTHERS PVT LTD A/C NO 1 | 5,920,204 | 1.39 |
17 | HNB INVESTMENT BANK (PVT) LTD/ MR. ELAYATHAMBY THAVAGNANASOORIYAM & MR. ELAYATHAMBY THAVAGNANA SUNDRAM | 5,110,252 | 1.20 |
18 | ARPICO INSURANCE PLC-SHARE HOLDERS | 4,039,426 | 0.95 |
19 | SOFTLOGIC LIFE INSURANCE PLC-A/C NO. 04 (PARTICIPATING FUND) | 3,611,014 | 0.85 |
20 | PEOPLE'S LEASING & FINANCE PLC/MR. D. SCHAFFTER | 3,429,114 | 0.8 |
PUBLIC HOLDING PERCENTAGE
As at 30/06/2025 | |
Float adjusted Market Capitalization in LKR ('000) | 41,944,107 |
Percentage of shares held by the public | 81.74% |
Number of public shareholders | 13,066 |
Option under which the Bank complies with the minimum Public Holding requirement | Option 1 |
DIRECTORS' INTEREST IN SHARES OF NDB AS AT 30.06.2025
Name | No. of shares |
MR. SRIYAN COORAY | - |
MR. BERNARD SINNIAH | - |
MR. SUJEEWA MUDALIGE | - |
MR. KUSHAN D'ALWIS, PC | - |
MS. KASTURI CHELLARAJA | - |
MS. SHWETA PANDEY | - |
MR. HASITHA PREMARATNE | - |
MR. KELUM EDIRISINGHE | - |
MR. SANJAYA MOHOTTALA | - |
Rated unsecured subordinated redeemable debentures
INFORMATION ON DEBENTURES- BANK | |||||||||||
Type of Debenture | CSE Listing | Interest payable frequency | Balance as at 30 June 2025 LKR mn | Market Value | Interest Rate | of comparable Govt. Security % | Other ratios as at last trade | ||||
Highest LKR | Lowest LKR | Period end LKR | Coupon Rate % | Effective Annual Yield % | Interest Yield % | Yield To Maturity % | |||||
Fixed rate - Debenture December 2024 A- Dec 2024/Dec 2029 B- Dec 2024/Dec 2029 | Listed | Annually Quarterly | 4,853 468 | Not traded during the quarter Not traded during the quarter | 13.00 12.41 | 12.30 12.31 | 10.75 | Not traded during the quarter Not traded during the quarter | |||
Fixed rate - Debenture September 2024 A- Sep 2024/Sep 2029 B- Sep 2024/Sep 2029 C- Sep 2024/Sep 2029 | Listed | Annually Semi-annually Quarterly | 4,315 848 268 | Not traded during the quarter Not traded during the quarter Not traded during the quarter | 13.25 12.84 12.64 | 12.52 12.52 12.53 | 12.98 | Not traded during the quarter Not traded during the quarter Not traded during the quarter | |||
Fixed rate - Debenture December 2023 A- Dec 2023/Dec 2028 B - Dec 2023/Dec 2028 | Listed Listed | Annually Quarterly | 3,596 1,675 | Not traded during the quarter Not traded during the quarter | 15.00 14.22 | 14.05 14.05 | 14.52 | ||||
Not traded during the quarter Not traded during the quarter | |||||||||||
Fixed rate - Debenture November 2021 A- Nov 2021/Nov 2026 B- Nov 2021/Nov 2028 | Listed | Semi-annually Semi-annually | 7,970 117 | Not traded during the quarter Not traded during the quarter | 11.90 12.00 | 11.66 11.73 | 11.14 11.61 | ||||
Not traded during the quarter Not traded during the quarter | |||||||||||
Fixed rate - Debenture September 2020 Sep 2020/ Sep 2025 | Listed | Annually | 6,965 | Not traded during the quarter | 9.50 | 9.16 | 6.57 | Not traded during the quarter | |||
Fixed rate - Debenture December 2013 D - Dec 2013/Dec 2025 | Listed | Annually | 3,830 | Not traded during the quarter | 14.00 | 13.26 | 12.09 | ||||
Not traded during the quarter | |||||||||||
Total Debentures | |||||||||||
34,905 | |||||||||||
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