Sri Lanka’s listed banks reported a slight quarter-on-quarter decline in capital buffers in the third quarter of 2025 though most remain above regulatory minimums,a report by CT Smith Securities Ltd shows.
As of 30 September 2025, HNB, NTB, and PABC held the strongest capital buffers, while COMB, DFCC, and NDB were at the lower end of the spectrum, the report noted.
Banks continued to maintain resilient Current Account and Savings Account (CASA) balances, highlighting their ability to attract and retain low-cost deposits.
Net Interest Income (NII) saw marginal QoQ growth, with stronger year-on-year expansion driven by robust loan growth, while non-interest income averaged around 38% of net interest income across the sector.
Net Interest Margins (NIMs) remained broadly stable compared with the previous quarter, and are expected to show only slight softening through the end of 2025 as market interest rates remain steady.
On a quarterly basis, NDB recorded the strongest earnings growth, followed by NTB and HNB, while SAMP and PABC posted declines.
NTB led in loan growth on both quarterly and year-to-date bases, with COMB seeing the largest absolute increase due to its larger scale.
Credit to the private sector grew 22% YoY and 17% YTD as of 30 September 2025, underscoring continued lending momentum despite market uncertainties.
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