NDB 4Q earnings slide on base effect from 2024 ISB gains

• Full-year profit up 21%

National Development Bank PLC (NDB) reported subdued financial performance for the quarter ended in December 2025, on the back of largely the massive provision reversals attributed to the International Sovereign Bond (ISB) restructuring in 2024, which lifted the December quarter profits in 2024 substantially. 

The bank reported earnings of Rs.8.82 a share or Rs.3.76 billion for the October-December quarter, down 23 percent from the same period in 2024.

In the corresponding period in 2024, the bank had provision reversals worth of Rs.21.09 billion, largely attributed to the aforesaid ISBs. In the same quarter in 2025, the bank provided Rs.28.55 million.

In what is referred to as the Day-1 loss from those derecognised ISBs, the bank reported Rs.14.34 billion in the 2024 December quarter.

In 2025, the bank gave loans worth of Rs.134.08 billion, growing its loan book by a robust 26.3 percent.

However, as seen in many banks, the final quarter loan growth slowed to just Rs.6.92 billion. The bank raised deposits worth of Rs.75.48 billion at a 11.9 percent growth.

The asset quality improved as the Stage 3 loans ratio came down to 3.75 percent, from 5.18 percent at the start of 2025. The bank reported a net interest income of Rs.9.08 billion for the quarter, down 8.0 percent.

This is amid the bank’s net interest margin falling to 4.04 percent, from 4.34 percent at the start of the year, in line with the decline in the interest rates.

“Despite the pressure on the interest-earning assets, arising from the lower interest rate environment, the bank’s disciplined margin management helped stabilise the net interest margin at 4.0 percent for the year,” the bank said in an earnings release.

The fee incomes too fell by 4.4 percent to Rs.3.11 billion.  

“Key growth drivers for the current year were trade finance, credit and lending, digital banking and credit and debit cards,” the bank said.

Meanwhile, for the full year, the bank reported earnings of Rs.27.83 a share or Rs.11.86 billion, up 21 percent.

Norfund, the Norwegian investment fund for developing countries, held a 9.94 percent stake in NDB, while the government in concert held roughly 32 percent in the bank as of end-December 2025.