📈 NDB Reports LKR 1.75 Bn PAT for 1Q26 Amid Fraud Recognition

National Development Bank PLC (NDB) has released its 1Q 2026 results, fully accounting for the financial impact of a previously disclosed fraud. The bank remains focused on core stability and SME sector support despite the LKR 13.20 Bn total estimated impact of the fraud. • Core Financial Performance (1Q 2026): - Gross Income: LKR 26.50 Bn (↑ 15.3% YoY). - Net Interest Income (NII): LKR 9.05 Bn (↑ 13.5% YoY). - Net Fee & Commission Income: LKR 2.19 Bn (↑ 24.9% YoY). - Net Interest Margin (NIM): Stabilized at 3.9%. - Post-Tax Profit (PAT): LKR 1.75 Bn (restated 1Q25: LKR 37.58 Mn). • Fraud Impact & Restatements: - Total fraud impact of LKR 13.20 Bn recognized across FY24, FY25, and 1Q26. - 1Q 2026 specific impact: LKR 2.67 Bn (recorded under operating expenses). - Without fraud impact, 1Q26 PAT would have been LKR 3.20 Bn. • Balance Sheet & Asset Quality: - Total Assets: LKR 977.20 Bn (restated). - Net Loans: LKR 623.11 Bn (↑ 5.0% from end-2025). - SME Loans: LKR 131.74 Bn (↑ LKR 7.09 Bn growth). - Stage 3 Loan Ratio: Improved to 3.2% (from 3.8% in 2025). - Impairment Charges: LKR 1.75 Bn (↓ 33.4% YoY). • Solvency & Liquidity: - Total Capital Adequacy Ratio (CAR): 15.4% (well above regulatory minimum). - Liquidity Coverage Ratio (Rupee): 177.5%. The Bank has commissioned Deloitte for a forensic review to evaluate control lapses and ensure future resilience. Based on provisional restated data.