Sri Lanka’s publicly listed lender, Nations Trust Bank, reported a 6 percent decline in group profits for the fourth quarter ending December 2025, reaching 4.35 billion rupees compared to the same period the previous year. This decrease is attributed to an exceptional gain recorded in the prior year following the derecognition of losses from the country’s International Sovereign Bonds due to debt restructuring.
Despite the quarterly decline, the bank’s profits for the financial year ending December 31 rose by 15 percent, totaling 19.3 billion rupees. This growth was driven by “healthy asset growth, resilient net income margins (NIMs), and disciplined risk management,” according to the bank. Earnings per share stood at 13.04 rupees for the quarter and 57.76 rupees for the full year.
During the quarter, gross income surged by 39 percent to 22.6 billion rupees, while net interest income increased by 7 percent to 9.95 billion rupees. Income expenses also rose by 30 percent, amounting to 8.64 billion rupees. Notably, the group reported a 50 percent growth in its loan book.
Hemantha Gunathilleke, Director and Chief Executive Officer of Nations Trust Bank, highlighted the significant growth in the loan book as a reflection of the bank’s commitment to supporting the growth of consumers, small and medium enterprises (SMEs), and corporates, as well as the broader Sri Lankan economy.
Nations Trust Bank’s capital base remained stable, with a return on equity (ROE) growth of 21.86 percent. Additionally, the bank received approval from the Central Bank of Sri Lanka to acquire the retail banking operations of Hongkong and Shanghai Banking Corporation Sri Lanka (HSBC). This follows a purchase and sale agreement between the banks in September 2025.
The transaction is expected to conclude in the second quarter of 2026 and will integrate approximately 200,000 customer accounts, including premium banking clients, credit cards, and retail loans, into Nations Trust Bank’s portfolio. This acquisition is set to significantly expand the bank’s presence in the premium retail segment, thereby enhancing its future readiness and driving long-term growth.
At the close of trading on Tuesday, Nations Trust Bank’s shares fell by 2.3 percent, closing at 337 rupees. (Colombo/February 25/2026)
