Record year for Sarvodaya Development Finance as profits and assets soar

Chairman Channa de Silva

 CEO Nilantha Jayanetti

Sarvodaya Development Finance PLC has achieved a record-breaking year in terms of financial performance, marking financial year 2023/24 as one of unprecedented growth and resilience.

Accordingly, the company reported its highest-ever profits, underpinned by a robust 43.5% growth in net interest income and a 45.7% increase in total operating income. Despite challenges amidst a dynamic economic environment, Profit Before Tax surged by 36.4%, while Profit After Tax rose by 12.6% to Rs. 249.5 million, demonstrating the company’s strategic acuity and operational efficiency.

The company’s performance in the Non-Banking Financial Institutions (NBFI) sector was particularly noteworthy. Sarvodaya Development Finance PLC achieved a growth in total assets of 27.7%, significantly outpacing the industry average of 7.7%. Meanwhile, the lending portfolio grew by 29.5% compared to the industry average of 4.5%, and deposits rose by 21%, well above the industry’s 8.8%. 

The financial robustness of Sarvodaya Development Finance PLC is evidenced by improvements recorded across several other key metrics, including Net Asset Value Per Share, which increased to Rs. 23.87 from Rs. 23.06 in the previous year. Meanwhile, Return on Equity (ROE) increased to 7.1% from 6.6%, while Return on Assets (ROA) stood steadily at the 1.9% level consecutively in current and previous financial periods. The cost to income ratio reduced to 53.9% from 63.0%, highlighting the company’s success in managing costs amidst high price levels. 

The company’s liquidity position and capital adequacy ratios also remained robust, meeting and exceeding all regulatory minima, further reflecting its financial stability. This solid financial foundation thus places Sarvodaya Development Finance PLC in an ideal position to harness emerging opportunities amidst Sri Lanka’s economic recovery.

Discussing the company’s financial performance and growth trajectory Sarvodaya Development Finance PLC CEO Nilantha Jayanetti said: “We are immensely proud of our financial performances during 2023/24, which attest to our strategic focus and the dedication of our team. Our record-breaking growth in profitability and asset expansion reflects our commitment to delivering sustainable value to our diverse stakeholders. As we look to the future, we are well-positioned to leverage the emergent economic recovery and sustain our direction towards strong performance.”

Beyond financial metrics, Sarvodaya Development Finance PLC has also made significant strides across several strategic initiatives. The company expanded its branch network, opening five new branches and extended its ATM network to six locations. Sarvodaya Development Finance PLC also joined the LankaPay Network, allowing customers to access its services from any ATM in Sri Lanka. This expansion has vastly improved customer access to services, reinforcing the company’s commitment to financial inclusion. 

Sarvodaya Development Finance PLC Chairman Channa de Silva also commented, saying: “Our broader strategic initiatives underscore our commitment to sustainable development and social responsibility. By focusing on partnerships and innovative practices, we are enhancing both operational efficiency and contributing to our broader goals of financial inclusion and community development. Looking ahead, we aim to further expand our reach and support for community-level businesses and entrepreneurs, which will drive the aspects of our growth and impact in the medium to long term.” 

As Sarvodaya Development Finance PLC looks to the future, the company’s objectives include enhancing financial support for farmers, expanding financial access through a broader branch and virtual/digital network, and attracting low-cost funds from overseas. These efforts align with the company’s focus on Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) criteria, ensuring that the growth is sustainable and impactful.