State-owned National Savings Bank (NSB) Profit After Tax (PAT) for the first half of this year (1H16) stood at Rs. 4.78 billion up from Rs.3.86 billion during the same period last year. 

The bank said this 24 percent increase in profits is most noteworthy considering several challenges the bank had to face during this period under review. 

These challenges included a weak equities market environment and mark to market losses on account of increases in interest rates on investments in government securities.
Total assets of the bank reached Rs. 875 billion fuelled by a satisfactory growth in both retail and corporate lending.

The total lending portfolio grew 10.6 percent for the first half of 2016.
In another positive development the bank improved its asset quality considerably with a decrease in NPL ratio to 2 percent by June 2016 from 3.5 percent reported end last year. 

Lower impairment provisioning assisted in enhancing profitability during this first half of the year.Net interest margins declined marginally on account of changes to deposit mix, resulting in a higher cost of funds.
The bank’s Tier 1 capital adequacy ratio stood at 15.94 percent while the total capital adequacy for the reviewed quarter was 14.97 percent. These ratios remain well above the regulatory standards for well capitalized banks. Liquidity ratio of the bank stood at 75.19 percent by the end of June 2016, which is well above the regulatory requirement of 20 percent.
By the end of June 2016, the branch network of the bank reached to 250 branches and the bank has added 5 new branches during the period under review.
AAA rating of the Bank was reaffirmed for the 14th consecutive year by the Fitch Ratings Lanka. 
NSB is the only local bank to receive AAA rating from Fitch Ratings and maintain the same for 14 years.