15/03/2026
SMIB’s Remarkable Turnaround in 2025
A Year of Transformation, Growth, and Renewed Confidence
Overview
In 2025, SMIB recorded one of its strongest financial and operational performances, supported by favorable macroeconomic conditions and the successful ex*****on of structural reforms. The Bank enhanced profitability, asset quality, and capital strength while reinforcing its commitment to innovation, operational efficiency, and responsible lending. This progress positioned SMIB firmly on a sustainable growth trajectory aligned with national development objectives.
The Bank’s upgraded core banking system, implemented in late 2024, served as a catalyst for operational improvements, significantly enhancing customer service delivery, streamlining business processes, and improving overall efficiency.
Financial Performance:
SMIB achieved an exceptional turnaround, posting a Profit After Tax (PAT) of Rs. 362 million, compared to Rs. 32 million in 2024. Profit Before Tax (PBT) increased by 367%, reflecting the Bank’s strengthened revenue base and disciplined cost management. Net interest income increased by 47% due to competitive loan pricing and optimized funding costs. A strategic reduction in interest-bearing liabilities and improved management of the deposit base resulted in a 28% reduction in interest expenses.
Asset Growth & Lending:
Total assets grew by 3% to Rs. 57.3 billion, driven primarily by loans and advances, which expanded by 8% as private sector credit demand improved. The EPF-backed loan segment grew by an impressive 33%, while mortgage loans remained steady, and personal loans declined due to conservative underwriting practices. The Bank maintained strict cost discipline while continuing to invest in technology, contributing to a 170% increase in operating profit before VAT and SSCL.
Deposit Base & Balance Sheet Stability:
Customer deposits grew modestly by 1.45% to Rs. 48.9 billion, with fixed deposits driving growth, reflecting continued public confidence in the Bank. Savings deposits remained stable, supporting a healthy mix of low-cost funding. The Bank’s liability structure remained robust, with customer deposits forming the core funding source.
Liquidity & Capital Strength:
As of December 31, 2025, the Liquidity Coverage Ratio (LCR) stood at 102%, exceeding regulatory requirements. SMIB further demonstrated strong capital resilience with Tier I and Tier II capital ratios of 19.1% and 19.23%, respectively, surpassing both the regulatory minimums and industry averages. The Net Stable Funding Ratio (NSFR) reached 110%, confirming strong access to stable long-term funds.
Diversified Income & Operational Excellence:
Non-interest income rose significantly, supported by a 120% increase in fee and commission income following updated fee structures and enhanced transactional activity. Other income categories, including dividends and sundry income, also expanded, reinforcing the Bank’s diversified revenue model.
Financial Coaching for a Stronger Future:
Our recent achievements are the result of true unity and teamwork. This progress was made possible through the collective commitment of our entire team — strengthened by the strategic guidance of our Board of Directors, the dedication and experience of our staff, and the valuable expertise of our professional partners.
Together, these combined strengths have driven our financial performance forward and paved the way for continued success.
Strategic Direction & Future Outlook:
Looking ahead, SMIB will continue to focus on sustainable growth, digital innovation, customer-centricity, and operational efficiency. The Bank will enhance its digital platforms, promote green lending, and expand strategic SME-focused financial solutions. Market diversification, strategic partnerships, and responsible finance will remain core pillars supporting future growth.
SMIB’s commitment to contributing meaningfully to national economic development, strengthening communities, and supporting environmentally responsible initiatives will continue to drive its long-term vision.
