* Profit before Income Tax – LKR 9.3 Bn up by 10.10%
* Profit after Tax – LKR 6.1 Bn up by 10.78%
* Total Assets reach LKR976 Bn
The Bank recorded a Profit Before Income Tax (PBT) of LKR 9,298Mn duringH1 2026, compared to LKR8,444 Mn reflecting a year-on-year growth of 10.10%.
For the 6months ended 30thJune 2026, the Bank recorded a Profit after Tax of LKR 6,080 Mn representing a growth of 10.78% compared to LKR5,489 Mn recorded in the corresponding period of 2025. Net interest income increased toLKR19,560 Mn fromLKR 17,762 Mn, an increase of 10.12% over the comparative period mainly due to the significant growth in bank’s total assets over the last 12 months from LKR 812 Bn as end of H1 2025 to LKR 976 Bn as at 30thJune 2026. The Bank’s Net Interest Margin (NIM) moderated from 4.50% in 2025 to 4.16% duringH1 2026.
Meanwhile, the Bank’s net fee-based income recorded a growth of 20.85%, increasing from LKR 3,847Mn to LKR 4,650Mn, primarily driven by fee income from Cards, Remittances, Trade, Loans and other financial services. The Bank’s total operating income was recorded as LKR 25,542 Mn, an increase of 13.34% compared to LKR 22,536Mn recorded in the corresponding period of 2025. Total operating expenses increased by 14.23%, rising from LKR 10,753Mn in H1 2025 to LKR 12,282 Mn in H1 2026. Personnel expenses grew by 12.96%, from LKR 5,801Mn to LKR 6,553 Mn, primarily due to annual salary revisions. Other operating expenses, including depreciation and amortization, increased by 15.72%, reflecting higher prices of consumables and other related cost of services over the period. The Bank continues to implement targeted cost optimization initiatives to manage overhead costs efficiently.
The Bank recorded an impairment charge of LKR 733Mn in H1 2026, higher than LKR 419Mn inH1 2025 with an increase of 74.98%. The Bank’s asset quality ratios demonstrated continued strength, with the Impaired Loans (Stage 3) Ratio at 1.03% (2025: 1.03%)and the Stage 3 Provision Cover Ratio at 85.26% as at 30th June 2026, one of the highest in the banking industry.
Income tax expenses for H1 2026 amounted to LKR 3,218Mn, compared to LKR 2,956 Mn reported for H1 2025. Value Added Tax (VAT) on Financial Services increased from LKR 2,564 Mn to LKR 2,833 Mn and Social Security Contribution Levy (SSCL) increased from LKR 356 Mn to LKR 396 Mn. The Bank’s total assets increased from LKR 921Bn to LKR 976 BnduringH1 2026, demonstrating a strong growth over the last six months. The Bank actively pursued new-to-bank loans and deposits while retaining its existing customer base during 1H 2026.Loans and Advances grew from LKR 600 Bn to LKR 650Bn while deposits increase from LKR 733 Bn to LKR 771Bn. The Bank’s CASA ratio stood at 27%. As of 30thJune 2026, Bank remained well-capitalized, with capital adequacy ratios comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 10.91%, while the Total Capital Ratio stood at 15.56%, reflecting a strong capital base.
The Bank maintained the Liquidity Coverage Ratio (LCR)well above the statutory requirement. All Currency LCR Ratio and the Rupee LCR Ratio were maintained at 187.03% and 175.88% respectively. The Return on Equity (ROE) stood at 14.74% (2025 – 15.89%) and Return on Average Assets (profit before tax) stood at 1.98% (2025 – 2.31%) for the period under review.
The Bank’s Earnings per Share stood at LKR 9.57 in H1 2026 compared to LKR 8.63 reported in the comparative period. The Bank’s Net Assets Value per Share stood at LKR 132.87as at30thJune 2026(Group – LKR 136.24).
Source: Daily News
Recent Comments