Banks Close 2025 on a Strong Note! 🏦📊 Sector PATMI hits LKR 53.3bn in 4Q 2025 — the second-highest quarterly profit on record. 🔑 What Drove Earnings • Stable NII supported by strong credit growth • Strong non-fund income • Broad-based lower QoQ impairments (COMB the exception) 🏆 Key Performers • BOC led the sector with PATMI of LKR 20.7bn • Banks with strong credit growth & earnings momentum: NTB, COMB, HNB & SAMP • QoQ PATMI growth across most banks 📉 Asset Quality Improves Further • Stage 3 ratios continued to decline • NTB recorded the lowest Stage 3 ratio • Highest provision cover: SEYB (86%) & HNB (76%) 💡 Efficiency & Profitability • Best C/I ratios: BOC, SEYB, COMB & NTB • ROEs above 18% delivered by BOC, NTB, COMB & HNB 💹 Credit & Deposits (FY 2025) • Strong sector-wide credit expansion • Fastest credit growth: NTB (+46%) • Strong deposit momentum led by NTB & DFCC 💰 Capital Position Remains Strong • Sector comfortably capitalized • Strongest buffers: NTB, PABC & HNB 💹 Valuations Still Attractive • Sector trades at 5.8x PER (below 10-year avg) • PBV at 0.9x, despite 16%+ sector ROE • Most banks trading below justified PBVs