Sector PATMI reached LKR 47.3bn in 1Q 2026, supported by strong credit growth and resilient core income despite higher impairments. 🔑 Key Highlights • Strong NII growth across the sector driven by healthy lending growth • Higher impairment provisions amid US-Iran conflict uncertainties • BOC led sector earnings with PATMI of LKR 18.8bn • Strong earnings momentum from COMB & NTB 📈 Credit & Deposits • SAMP led sector credit growth • COMB led deposit inflows • Strong loan growth from PABC, NTB & HNB 📉 Asset Quality Improves • Stage 3 ratios continued to decline • Lowest Stage 3 ratios: SEYB, NTB & HNB • Highest provision cover: SEYB (86%) & COMB (75%) 💡 Profitability & Valuations • Highest NIM: NTB • Strongest ROEs: COMB, BOC & NTB • Sector trades at attractive 5.5x PER & 0.8x PBV