National Development Bank PLC (NDB) reported a post-tax profit of LKR 7.7 billion for the nine months ended September 30, 2026, despite the financial impact of the fraud incident identified in April.
The results, released to the Colombo Stock Exchange (CSE) on October 21, show continued strength in the Bank’s core banking operations.
Operating profit before tax on financial services reached LKR 15.1 billion for 9M 2026. This was after recognising LKR 2.6 billion as the gross financial impact of the fraud for the period.
For comparison, NDB reported a restated post-tax profit of LKR 5.1 billion for 9M 2025. The 2025 figure includes a restated fraud impact of LKR 4.5 billion.
Without the fraud impact, NDB’s post-tax profit for 9M 2026 would have been LKR 9.1 billion, compared with LKR 7.5 billion for the same period in 2025.
Final Fraud Impact Confirmed at LKR 13.64 Billion
NDB said the final forensic report confirmed the total fraud at around LKR 13.64 billion. This compares with the earlier figure of around LKR 13.58 billion announced after the interim forensic report.
The additional amount has been recognised under the applicable Accounting Standards.
Of the total impact, LKR 2.6 billion relates to 9M 2026. The Bank said this amount related entirely to the quarter ended March 31, 2026. The applicable impact for 9M 2025 was LKR 4.5 billion.
NDB’s post-tax profit for Q3 2026 was LKR 2.9 billion. This compares with LKR 3.0 billion in Q2 and LKR 1.8 billion in Q1. Excluding the fraud loss, Q1 2026 post-tax profit would have been LKR 3.2 billion.
The Bank said it continues to pursue available recovery options while taking legal and internal action and strengthening controls, technology and governance.
Net Banking Revenue Grows 14.8%
NDB recorded net banking revenue of LKR 32.6 billion, up 14.8% from the comparative period. The figure was reported before any financial impact from the fraud.
Total revenue increased 10.6% year on year to LKR 80.6 billion.
Net interest income was LKR 25.4 billion, down 2.2%. NDB said the decline was linked to the low interest rate environment and faster deposit repricing.
The Bank managed these pressures through balance sheet management, pricing and asset and liability management. Net interest margin stood at 3.6%, compared with 4.1% for FY 2025.
Net fee and commission income increased 14.1% to LKR 6.6 billion. Credit and cards, along with related services, were key contributors.
Other non-fund-based income reached LKR 3.7 billion, compared with LKR 2.6 billion in 9M 2025. This included foreign reserve revaluation gains of LKR 953 million, up from LKR 396.8 million.
Asset quality also improved. Impairment charges on loans and other investments fell 48.4% year on year to LKR 3.0 billion.
The Stage 3 loans to total loans ratio, on a net basis, improved to 3.0% at September 30 from 3.8% at the end of 2025. Stage 3 provision coverage also improved to 65.4% from 59.1%.
Loans, Deposits and Capital Remain Strong
NDB’s total assets stood at LKR 975.4 billion at September 30, 2026, up 5.3% from the restated LKR 926.1 billion at the end of 2025.
Net loans increased to LKR 599.7 billion from LKR 593.6 billion. Total deposits also grew to LKR 717.5 billion from LKR 707.2 billion.
The Bank’s CASA ratio was 20.7%, compared with 23.9% at the end of 2025.
Liquidity remained above regulatory requirements. The rupee and all-currency Liquidity Coverage Ratios were 199.0% and 161.8%. The Net Stable Funding Ratio was 126.8%. All three ratios were above the 100% regulatory minimum.
NDB’s Common Equity Tier 1/Tier I Capital ratio was 9.5%, while its Total Capital Adequacy Ratio was 14.8%.
Return on Average Equity improved to 12.9% for 9M 2026. Annualised earnings per share increased to LKR 24.23 from the restated LKR 13.83 for FY 2025.
CEO Says Bank Remains Focused on Sustainable Growth
Commenting on the results, NDB Director/Chief Executive Officer Kelum Edirisinghe said the Bank had continued to show strength despite the circumstances it faced.
“Despite the extraordinary circumstances faced, the Bank continues to demonstrate strength and resilience. Our Q3 2026 performance reflects the disciplined execution of our strategy to recalibrate the balance sheet and pursue measured and sustainable growth in line with our strategic priorities.”
On the fraud, Edirisinghe said the final forensic report was generally consistent with the Bank’s internal investigations.
“The Bank continues to pursue all available avenues for recovery, appropriate legal and internal action, and implement relevant controls, technology and governance enhancements, while keeping the CBSL updated on the measures being taken.”
Looking ahead, he said the Bank remains optimistic about its prospects, supported by its capital and liquidity position, workforce, technology and governance frameworks.
“We will remain disciplined in managing risk, capital, liquidity and costs to support measured, responsible and sustainable growth, while deepening customer relationships, and leveraging technology to further enhance customer experience and operating efficiency.”
He added that NDB believes it is well positioned to support customers and contribute to economic progress while turning the strength of its core franchise into sustainable growth.
Banking & Finance Financial Performance
Last modified: October 23, 2026
