The Public Ledger

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Bank soundness

How safe and profitable the banking system is, published statistics from MMA. Well-capitalised banks with contained bad loans keep the system stable.

Capital adequacy i
41.5%
May 2026
Non-performing loans i
5.4%
May 2026
NPL provision cover i
55.4%
May 2026
Liquid asset ratio i
21.0%
May 2026
Private credit growth i
14.2%
May 2026
Lending–deposit spread i
7.5 pp
May 2026
Return on assets
4.9%
May 2026
Return on equity
15.8%
May 2026

Asset quality & capital over time

Percent. A rising non-performing-loan ratio signals stress in the loan book; the capital-adequacy ratio is the buffer that absorbs it.

0.0%14.2%28.4%42.6%56.8%202420252026
Capital adequacy ratioNon-performing loan ratio

How banks make money

The banking system's income statement (table 9.2). Banks earn a spread on lending plus fees, pay staff and set aside provisions for bad loans, and what's left is profit.

Net income (after tax)
MVR 3.92 bn
2025
Gross income
MVR 8.25 bn
2025
Cost-to-income i
38%
2025

Where the income comes from

2025, millions of MVR. Net interest income (the margin between lending and deposit rates) is the core; fees and other non-interest income make up the rest.

Net interest income MVR 5.08 bn · 62%
Non-interest income (fees etc.) MVR 3.18 bn · 38%

Net income, annual

Millions of MVR, after tax.

0 m1.03 bn2.06 bn3.09 bn4.11 bn202020212022202320242025
Net income after taxes

The wider financial system

Soundness beyond the banks (table 9.3): how indebted households are, how large the pension fund looms, and how exposed lending is to property.

Household debt i
16.5%
of GDP
Pension fund assets i
22.8%
of GDP
Pension fund
18.3%
of the financial system
Real-estate loans i
20%
of all bank loans, Mar 2026

Household debt & the pension fund, over time

Percent of GDP, quarterly. Both have been shrinking relative to a growing economy, but for different reasons: household borrowing cooling, pension assets growing more slowly than GDP.

0.0%7.2%14.3%21.5%28.6%2020202120222023202420252026
Household debtPension fund assets

Real-estate lending: residential vs. commercial

Percent of all bank loans, quarterly. Residential exposure has fallen by roughly a third since 2020 while commercial property lending has nearly doubled. Banks' property risk is shifting from homes to businesses, not shrinking overall.

0.0%5.7%11.4%17.2%22.9%2020202120222023202420252026
Residential real estateCommercial real estate