Business
‘NSB continued to prove its resiliency within economic shudder’
Rs. 1.7 Tn Asset base
Rs. 1 Tn investment base
Rs. 1.5 Tn Deposit base
Impaired Loans (Stage 3) Ratio 2.41% (net of stage 3 impairment)
Gross Income raised by 33% YoY
The year 2023 was another challenging year for almost all the sectors of the economy specially the banking sector. Grappling with aftermath of pandemic followed by largest economic crisis in post-independence history, and socio-political uncertainties and monetary tightening, National Savings Bank including all the other banks faced their toughest financial year.
Being a licensed specialized bank with limited financial market opportunities, NSB demonstrated its mettle by recording a Profit after Tax (PAT) of Rs. 7.2 billion for the fiscal year ended December 31, 2023, a testament to its adept management and highly skilled workforce.
The Banks’ achievement of Rs. 7.2Bn PAT was mainly surged by 31% increment of Interest Income. The Bank strategically allocated more than 60% of its customer deposits investing in Government Debt Securities capitalizing on the higher interest rates prevalent in 2022. This prudent investment strategy yielded a substantial interest income of Rs. 137.7Bn which was an upswing of 36%. Interest received through Loans and Advances also grew by 36.3%, an increment of Rs. 23.4 Bn.
Net Gain from trading rose up to Rs. 3.7Bn at the group level which was a 206% increase from last year where we recorded a loss from trading. However, NSB was able to turn around the situation with professional due care and commitment, underscoring NSB’s adeptness in capitalizing on market opportunities.
The Bank however, encountered challenges in net fee and commission income, witnessing a 34% decline due to subdued demand for loans and advances amid higher interest rates then prevailed. Fee and Commission Income was mostly contributed from Retail Loans and Corporate Banking. Both lines of business were clogged due to unwholesome micro financial conditions.
Exceeding the growth rate of Interest Income, the Interest Expense of the Bank also increased by 41% year-over-year (YoY). This rise in the cost of funds, particularly from Fixed Deposits which represent the largest portion (81%) of NSB’s deposit base, contributed to a congestion in the positive growth of Net Interest Income due to the lag effect of liability repricing.
Impairment charges of the Bank decreased by 12% on 2023 compared to the same period last year. The Bank closely monitors and considers the impact of economy to business operations and performance.
In terms of Asset Quality, with all the obstacles, NSB has one of the lowest Impaired Loans (Stage 3) Ratio 2.41% (net of stage 3 impairment) compared to the industry rate of 7% at the end of year fiscal year 2023. Further, the Bank maintains above industry impairment coverage ratio of 53.3%.
Personnel and other expenses were increased by 17% and 16% respectively being in consistent with inflationary situations globally. The Bank recorded a PBT of Rs. 4.3 Bn which was a 5% decrease from the last year. Recording deductible temporary difference of Differed Tax there was a credit of Rs. 2.5 Bn to Income Tax Reversal and created differed tax asset. Accordingly, the Bank was able to spot Rs. 7.2 Bn PAT.
Despite the challenges posted by micro financial conditions and moving to low-interest-rate set-up, the Bank was able to grow its deposit base by Rs. 5.8Bn. On the back of 100% ownership of Government of Sri Lanka (GoSL) and the 100% explicit guarantee provided by the GoSL for the money deposited with the Bank and the interest thereof through the National Savings Bank Act, NSB continued to assure the customer confidence on their deposits.
The Bank’s investment portfolio grew by Rs 62.4Bn amidst the low demand for loans and receivables and the Bank’s strategic move to flow its interest earning assets to a most profitable alternative available. As perfectly described earlier these investments in Government Securities could earn Rs. 137.7Bn Interest Income. Surpassing the industry average of Investment to Total Asset Ratio of 35.8%, NSB recorded 62.4% in 2023.
Total Asset base remarked to Rs. 1.7Tn on 2023 showing a markup of 4% compared to last year. The Bank generated 9.36% of ROE and 0.26% of ROA (Before Tax) in 2023.
The Bank maintained highly liquid asset portfolio when compared with the banking industry. Surpassing the minimum requirement of 20%, NSB has 55% of Statutory Liquid Asset Ratio where the industry average is 44.9% at the end of the year 2023. Liquidity Coverage Ratio (All currency) of NSB is 293.7% which is far more than the minimum requirement of 100% at the end of the year 2023.
The Bank is cushioned adequately to cover potential losses to protect the interests of the Bank’s depositors and other lenders. Accordingly, NSB marked well above regulatory minimum in terms of Capital Adequacy Ratios. The Banks’ Common Equity Tire 1 Capital Ratio was 15.3% at the end of 2023 (minimum requirement -7%) where industry score was 13.4%. Tier 1 Capital Ratio of NSB was 16.9% (minimum requirement – 8.5%) where industry score was 13.8% at the end of 2023. Total Capital Adequacy Ratio of NSB at the end of 2023 was 19.3% where the industry marked it to 16.9%.
As such, NSB continued to stamp its position as “Safest Bank in Sri Lanka” in every aspect such as liquidity, balance sheet management, performance and credit and market risk management. The Lanka Rating Agency (LRA) has assigned the Bank with the issuer rating of [SL] AAA with Stable Outlook. The Bank has been awarded the 6th most valuable brand in Sri Lanka by the Brand Finance Lanka Ltd on 2023. NSB also ranked among the Top 10 Women Friendly Workplaces in Sri Lanka for third consecutive year on 2023.
(NSB)
Sri Lanka’s Ministry of Industries and Entrepreneurship Development Secretary Thilaka Jayasundara voiced confidence yesterday that warming U.S.-Russia relations could catalyse economic opportunities for Sri Lanka, during a forum hosted by the National Chamber of Commerce.
Speaking at the ‘Russia-Sri Lanka Development of Trade, Economic, and Banking Cooperation’ event, Jayasundara, a seasoned official with experience across multiple political administrations highlighted that eased secondary sanctions resulting from improved Moscow-Washington dialogue could unlock favorable trade conditions for Sri Lanka. Her remarks drew visible approval from Russian Ambassador Levan Dzhagryan, seated nearby.
“Sri Lanka’s balanced, neutral foreign policy positions us to benefit from any collaborative outcomes of U.S.-Russia talks,” she asserted, underscoring the nation’s potential to leverage evolving geopolitics for trade and investment gains.
Jayasundara didn’t miss the opportunity to urge Sri Lankan trade chambers to collaborate with the Export Development Board (EDB) to diversify exports and maximise foreign exchange earnings.
“Businesses and banks present here should explore to forge stronger B2B linkages for mutual benefit at the breakout sessions,” she added, referencing discussions at the forum that connected SMEs and large firms in agriculture, fintech, pharmaceuticals, industrial manufacturing among other sectors.
The secretary’s optimism aligns with Sri Lanka’s broader strategy to navigate global economic headwinds by capitalising on diplomatic shifts and expanding its export portfolio.
According to the EDB, the total export value from Sri Lanka to Russia was USD 144.25 Mn in 2023 and total imports from Russia to Sri Lanka for the same period were USD 393.55 Mn. Official data for 2024 remains pending.
The Russian delegation that took part in the B2B meetings was headed by Dr. Alexander Rybas, Trade Commissioner of the Russian Federation.
By Sanath Nanayakkare
Hemas Hospitals has proudly partnered with the JOE-PETE Big Match 2025 as the official healthcare provider, continuing its strong tradition of supporting community events and ensuring the safety and well-being of all participants and spectators.
As one of Sri Lanka’s most anticipated annual school cricket encounters, the JOE-PETE Big Match brings together passionate fans, students, and alumni from St. Joseph’s College and St. Peter’s College. With thousands expected to attend, Hemas Hospitals steps in once again, marking its fifth consecutive year of involvement, to provide expert medical support on-site.
“As a leading private hospital network, we’re proud to be a part of this iconic event. Our partnership reflects our commitment to community health and to being there where it matters most,” said Dr. Pradeep Edward, Director General Manager, Hemas Hospital Thalawathugoda. “We want all attendees to enjoy the event with peace of mind, knowing that their health and safety are in good hands.”
During the match days, Hemas Hospitals will deploy on-site medical teams, ambulances, and a qualified sports medicine medical officer to respond to any health emergencies or injuries. From first aid to injury management, the team is equipped to handle a wide range of situations with the efficiency and professionalism that Hemas is known for.
“Our practice of having highly trained medical staff and emergency support continues,” said Anjana Cramer, Business Development Manager. “Our aim is to be proactive, responsive, and accessible throughout the event.”
In addition to healthcare support, Hemas Hospitals will have a strong brand presence at the event, with Hemas flags, A-boards, a branded ambulance, and the medical team visibly positioned throughout the grounds.
“We want this partnership to not only represent medical readiness but also our larger message of promoting health and unity through sport,” said Duwayne Rozario, Executive – Business Development. “It’s about more than just treatment, it’s about being an active part of the community.”
Weddings on the beach, an aqua platform to be served dinner in the sea; four ocean pavilions, informal camaraderie, more so, come as you are atmosphere for informality and bonhomie unmatched in any resort.
What are we talking about? Just a cautious; yet unavoidable blend for a holiday; and an atmosphere of ‘let your self go’, experience unmatched in a resort hotel.
Where are these ‘happenings’? At the Sunsiyam Pasicuda.
Just so, assuming you’ve been to the Maldives, and factually, it’s a demand driven destination, to the US, so too, we assume, Sunsiyam Pasicuda, is a growing destination for holidays in the warm waters of the Indian Ocean surrounding the East coast of this island.
Why surrounding? Simple; just that Sunsiyam Pasicuda perched by the sea, apart from the warm waters bordering the resort; we are also of the positive atmosphere of the shallow sea abutting the picturesque appeal viewed from the sea. Appealing to tourists already enjoying the numerous attractions of this resort facility.
Our observations were French, Germans and other Europeans were already enjoying the facilities of Sunsiyam Pasicuda.
General Manager Arshed Refai was on hand to give us detailed explanation on facilities guests could expect and enjoy and numerous offerings that appeal for long stays. Quite regularly, he said, guests are quite reluctant to depart. Particularly Europeans who we observed enjoying the sun and more so walks along the beach.
Two flights each week bring tourists from Colombo who prefer the resort atmosphere of the East coast, more so attractions of Sunsiyam Pasecuda. Additionally, Ministry of Tourism provided train services as well to encourage tourist traffic to the East to enjoy the growing popularity of this resort and other resorts we observed in the area.
GM Refai further said the dining experience, and varied choice of cuisine catered to each national from West to East; which, he said, was quite in order to cater to choices in food and individual taste desires.
Formal opening of the hotel was in 2014 and was classified a Luxury Boutique Hotel. ‘Was it popular among local tourists’? He responded positively that its appeal was growing, related to the chain of other destinations in the East. Additionally, its popularity and appeal, particularly to its chalets and Five Star luxury was in reality not an available concept elsewhere.
Chef Dilan Jayasundera, explained varied cuisine and food flavours he was adept in producing to ensure guests were not in need, food vice.
He further said a broad cross section of tastes was catered to.
Asst General Manager Keerthi expanding on additional facilities said 34 rooms were villa style accommodation spread over the land. Four ocean pavilions complemented a formal atmosphere.
GM Refai further said 90 guests at peak accommodation enjoyed international cuisine.
Excursions, to the fish market, sea observations in glass bottom boats to observe fauna and flora under water, including the varied amphibian fish population were of great appeal.
Questioned on any Maldivian influence, he said, Sunsiyam was not influenced by the Maldives, but its style was of broad appeal.
By Steve A. Morrell
-
Sports4 days agoSri Lanka’s eternal search for the elusive all-rounder
-
News3 days agoBid to include genocide allegation against Sri Lanka in Canada’s school curriculum thwarted
-
News5 days agoGnanasara Thera urged to reveal masterminds behind Easter Sunday terror attacks
-
Business6 days agoAIA Higher Education Scholarships Programme celebrating 30-year journey
-
News4 days agoComBank crowned Global Finance Best SME Bank in Sri Lanka for 3rd successive year
-
Features4 days agoSanctions by The Unpunished
-
Latest News2 days agoIPL 2025: Rookies Ashwani and Rickelton lead Mumbai Indians to first win
-
Features4 days agoMore parliamentary giants I was privileged to know