Profit up 16%. Flat on the quarter.
Net Interest Income rose 44.1% from a year ago to LKR 2.48 Bn, and Profit Attributable rose 15.9% to LKR 464 Mn. On the quarter, profit was flat (−0.3%) as impairment charges rose to LKR 321 Mn from LKR 144 Mn.
Share price
- Close, 27 October 2026
- LKR 39.90
- Results declared
- 27 October 2026
Jul–Sep 2026 results, line by line
| LKR Mn | Jul–Sep 2026 | YoY | QoQ |
|---|---|---|---|
| Net Interest Income | 2,476 | +44.1% | +8.7% |
| Fee Income | 296 | +1.6% | +1.8% |
| Total Operating Income | 2,812 | +38.4% | +8.2% |
| Impairment Charges | 321 | +403.9% | +122.5% |
| Operating Expenses | 1,407 | +33.5% | +2.9% |
| Cost to Income | 50.0% | −1.8 pts | −2.6 pts |
| Profit Before Income Tax | 788 | +17.6% | +0.2% |
| Profit Attributable | 464 | +15.9% | −0.3% |
YoY against the same quarter a year ago. QoQ against the previous quarter.
What drove it
- 01Interest costs outpaced interest income
Interest Expenses rose 72.0% YoY against 57.1% for Interest Income, so the share of interest income kept as Net Interest Income fell to 48.9% from 53.4% a year ago. Since March, loans and leases grew 10.6% to LKR 97.4 Bn and deposits 26.7% to LKR 52.3 Bn.
- 02Where operating profit went
Higher Net Interest Income added LKR 758 Mn and fees and other income LKR 22 Mn. Higher impairment charges (LKR 257 Mn) and operating expenses (LKR 353 Mn) took away LKR 610 Mn, leaving LKR 1,084 Mn against LKR 914 Mn a year ago.
- 03Flat on the quarter
Impairment charges rose to LKR 321 Mn from LKR 144 Mn last quarter, holding Profit Attributable at LKR 464 Mn against LKR 466 Mn, even as Net Interest Income grew 8.7%.
- 04Capital has tightened
The Tier 1 ratio was 8.87%, from 10.60% in March and 9.50% a year ago, and Total Capital 12.68%, from 12.74% and 13.30%. Shareholders approved a rights issue on 15 October 2026: 76.6 Mn shares at LKR 39.20, about LKR 3.0 Bn, to improve capital adequacy.
Valuation at LKR 39.90
On 277.85 Mn shares in issue. The rights issue will add 76.65 Mn shares. Singer Finance has no subsidiaries, so profit attributable equals profit after tax.
Three things to watch next quarter
- Impairment charges. Do they settle, after rising to LKR 321 Mn from LKR 144 Mn last quarter?
- Capital. Does the LKR 3.0 Bn rights issue rebuild the Tier 1 ratio from 8.87%?
- Profit growth. Can profit grow again on the quarter, after a flat second quarter?
The company
Capital Trust Securities. For information only. Not investment advice. Source: Singer Finance (Lanka) PLC interim financial statements to 30 September 2026 (unaudited). Singer Finance has no subsidiaries.