1、JULY 2025Sri Lanka Banking Sector Roundup Q1 CY20251Government Banks(3 banks)Large Private Banks(3 banks)Mid-sized Private Banks(4 banks)Glossary:Classification of Sri Lankan banks used in this documentNote:Sri Lanka has 12 Licensed Commercial Banks and 6 Licensed Specialized Banks(includes public a

2、nd private banks;excluding the foreign banks).The 10 banks benchmarked collectively account for approximately 95%of the total banking industry by size.21.6%73 bps YoYQ1CY25 results:Banking industry snapshotLKR 16,826.9 Bn13%YoYTotal Deposits LKR 11,584.5 Bn12%YoYTerm DepositsLKR 5,216.8 Bn15%YoYCASA

3、 DepositsLKR 9,342.8 Bn7%YoYTotal Net Advances 31.0%52 bps YoYCASA Ratio34.6%1040 bps YoYCost-IncomeLKR 268.1 Bn45%YoYTotal Income1 LKR 214.1 Bn38%YoYNet Interest IncomeLKR 54.0 Bn82%YoYNon-Interest Income1 LKR 80.2 Bn106%YoYPATBusinessKey RatiosProfitability4.3%81 bps YoYNIM(%)1.Calculated as Net T

4、otal income and Net Non-Interest IncomeAnalysis has been made based on 3 Government Banks,3 Large Private Banks and 4 Mid-Sized Private BanksSource:Financial Results,Investor Presentation;BCG analysisROA3 Profitability:Banking industry reported 106%YoY growth in Net Profit(298%YoY for Govt.banks and

5、 49%YoY for Private banks),driven by improved NII and other income and decline in provisionsoGrowth in profits of private bank is due to reversal in provisioning for most of the large private banks and decline in provisions for mid-sized private banksoPre Provisioning Operating Profits(PPoP)of Govt.

6、banks registered a tremendous growth of 227%;while Private banks observed 25%YoY growthoOperational efficiency:CIR improved by 1040 bps to 34.6%for the industryMacro TrendsSummary Snapshot(I/II)Key Performance Indicators Economic growth:Real GDP growth for Q1 CY25 at 4.8%,driven by key industries an