SDB Bank reported a steady financial performance for the first quarter ending on March 31, 2026, showcasing its commitment to disciplined financial management, careful risk oversight, and sustainable growth in its primary business areas.
The bank achieved a Profit After Tax of Rs. 60 million for the first quarter of 2026, which indicates a 7% increase compared to the same period in 2025. This growth can be attributed to enhanced operational efficiency, effective strategic implementation, and an increase in customer loans across crucial sectors such as agriculture, small and medium enterprises (SMEs), cooperatives, and retail.
Net fee and commission income surged by 29% to reach Rs. 152 million during the quarter, reflecting SDB Bank’s ongoing commitment to bolstering its non-funded income streams. This rise demonstrates the bank’s efforts to diversify its revenue sources through improved service capabilities, greater digital integration, and customer-centric financial solutions.
Throughout the quarter, SDB Bank maintained a robust capital and liquidity position. The Total Capital Ratio was recorded at 15.15%, significantly exceeding the regulatory minimum requirement, while the Liquidity Coverage Ratio was upheld at 145.08%. Additionally, the Net Stable Funding Ratio was noted at 136.97%, further indicating the bank’s capacity to maintain balance sheet resilience while facilitating future growth.
Kapila Ariyaratne, the Executive Director and CEO of SDB Bank, remarked, “Our results for the first quarter of 2026 illustrate the effectiveness of our disciplined banking approach, supported by robust risk management, operational diligence, and a strong commitment to customer value. We are heartened by the sustained growth in fee-based income and the strength of our capital and liquidity. Moving forward, SDB Bank will continue to focus on aiding SMEs, cooperatives, the agricultural sector, retail clients, and underserved communities while striving to build a more resilient, inclusive, and future-oriented institution.”
In this quarter, SDB Bank also made strides in advancing its sustainability initiatives, prioritizing environmentally conscious financing, inclusive banking practices, support for women-led businesses, and rural development. With a network of 94 branches across the country, the bank remains dedicated to providing financial solutions that contribute to Sri Lanka’s long-term economic progress.
