NDB Reports Rs. 7.7 Billion Nine-Month Profit After Fraud Charges; Q3 Earnings Reach Rs. 2.9 Billion
COLOMBO, October 22, 2026 — National Development Bank PLC (NDB) reported a post-tax profit of Rs. 7.7 billion for the nine months ended September 30, 2026, compared with a restated Rs. 5.1 billion a year earlier, after accounting for fraud-related losses attributable to both periods.
The bank recorded a third-quarter post-tax profit of Rs. 2.9 billion, against Rs. 3.0 billion in the second quarter. Its results were released to the Colombo Stock Exchange on October 21.
The nine-month performance included a Rs. 2.6 billion gross charge relating to the fraud identified in April 2026. The charge was attributable entirely to the first quarter, while the comparative nine-month results for 2025 were restated to incorporate a Rs. 4.5 billion fraud impact.
According to the bank, the final forensic report placed the total fraud amount at approximately Rs. 13.64 billion, slightly above the Rs. 13.58 billion disclosed following the interim report in June.
Excluding the fraud’s financial impact, nine-month post-tax profit would have reached Rs. 9.1 billion, compared with Rs. 7.5 billion in the corresponding period of 2025.
Gross income increased by 10.6% year-on-year to Rs. 80.6 billion. However, net interest income declined by 2.2% to Rs. 25.4 billion, with the bank citing the low-interest-rate environment and deposit repricing dynamics. Net interest margin stood at 3.6%, compared with 4.1% for the full year of 2025.
Net fee and commission income rose by 14.1% to Rs. 6.6 billion, supported by credit, card-related and other services. Other non-fund-based income increased to Rs. 3.7 billion from Rs. 2.6 billion, including foreign reserve revaluation gains of Rs. 953 million.
Lower impairment charges also supported earnings. Charges on loans and other investments fell by 48.4% to Rs. 3.0 billion, which the bank attributed to improved credit assessment, monitoring and recovery efforts.
The net Stage 3 impaired loans ratio improved to 3.0% at September 30 from 3.8% at the end of 2025. Stage 3 provision coverage increased to 65.4% from 59.1%.
Total operating expenses amounted to Rs. 17.5 billion, including the Rs. 2.6 billion fraud-related charge, compared with restated expenses of Rs. 18.3 billion a year earlier.
NDB’s total assets increased by 5.3% to Rs. 975.4 billion from a restated Rs. 926.1 billion at December 31, 2025. Net loans rose to Rs. 599.7 billion from Rs. 593.6 billion, while deposits increased to Rs. 717.5 billion from Rs. 707.2 billion.
Lending to small and medium-sized enterprises expanded by 7.1%, or Rs. 8.9 billion, taking the SME portfolio to Rs. 133.5 billion.
The bank’s current and savings account ratio declined to 20.7% from 23.9% at the end of 2025, reflecting pressure on low-cost deposits.
Capital and liquidity ratios remained above applicable regulatory requirements. The Common Equity Tier 1/Tier I capital ratio stood at 9.5%, while the total capital adequacy ratio was 14.8%.
Rupee and all-currency liquidity coverage ratios reached 199.0% and 161.8%, respectively. The net stable funding ratio stood at 126.8%, with all three liquidity measures exceeding the 100% regulatory minimum.
NDB Director and Chief Executive Officer Kelum Edirisinghe said the bank remained focused on measured growth, balance sheet management and stronger governance following the fraud incident.
He said NDB continued to pursue recovery avenues and appropriate legal and internal action, while strengthening controls, technology and governance arrangements and keeping the Central Bank informed of its progress.
