Demonstrating resilience amid a dynamic operating environment, the Bank reported a Profit After Tax (PAT) of Rs. 254 million as at the end of Q3 2025, supported by strategic optimization of yields and funding costs.
The quarter was marked by renewed credit growth, as loan disbursements accelerated across key sectors, underscoring confidence in the Bank’s lending strategy and its strong customer relationships. Loans and advances to customers expanded by Rs. 9.7 billion on a year-to-date basis, while the Non-Performing Loan (NPL) balance declined, signaling improvements in asset quality and the effectiveness of the Bank’s risk management framework.
Correspondingly, the Stage 3 loan coverage ratio improved to 52.28%, up from 47.78% in 2024, reflecting prudent provisioning and sustained collection efforts.
Net Fee Income increased by 33% year-on-year, driven by the Bank’s continued expansion of fee-based services and customer engagement initiatives.
This performance underscores SDB bank’s commitment to diversifying income sources beyond traditional lending and enhancing the value proposition offered to customers.
While overhead expenses increased modestly by 6% year-on-year reflecting targeted investments in human capital and service innovation, impairment charges declined by 11%, further supporting profitability.
The Bank maintained a strong Total Capital Ratio of 14.90% and a Liquidity Coverage Ratio (LCR) of 148.65%, comfortably exceeding regulatory requirements, which underscores its robust liquidity position and balance sheet stability.
During the quarter, SDB bank continued to optimise its funding structure, focusing on reducing high-cost borrowings while strengthening its low-cost deposit base.
Although overall assets contracted slightly by 1%, primarily due to the repayment of short-term liabilities and the appreciation of the Sri Lankan rupee, the Bank maintained a stable financial position with a healthy liquidity buffer to support continued credit expansion.
Reflecting on the performance, Kapila Ariyaratne, Executive Director and CEO of SDB bank, stated:
“Our Q3 results demonstrate the Bank’s continued ability to navigate evolving market conditions with prudence and purpose.
The consistent improvement in revenue streams and asset quality validates our long-term strategy of balancing growth with sustainability while remaining committed to our core purpose of empowering communities, supporting MSMEs, and strengthening the cooperative sector.
We also continued to invest in human capital and our digital and ESG-led transformation.”
Sri Lanka’s economy maintained its recovery momentum during the quarter, underpinned by fiscal consolidation, structural reforms, and rising investor confidence.
In this favorable backdrop, SDB bank continues to reinforce its role as a catalyst for inclusive growth, advancing sustainable finance, expanding digital accessibility, and fostering resilience within communities across the island.
About SDB Bank
A future-ready bank, dedicated to offering customer-centric and comprehensive support tailored to each individual's needs, SDB bank is a licensed specialized bank regulated by the Central Bank of Sri Lanka, with a listing on the Main Board of the Colombo Stock Exchange and a Fitch Rating of BB +(lka).
Through the network of 94 branches island-wide, the bank provides a comprehensive range of financial services to its Retail, SME, Co-operative, and Business Banking clients across the country.
Environmental, Social, and Governance (ESG) principles are deeply ingrained in SDB bank's ethos, with a steadfast focus on uplifting local communities and businesses through sustainable practices.
The bank is particularly committed to promoting women's empowerment, sustainable development of SMEs, and digital inclusion, aiming to propel Sri Lanka to new heights.