SDB bank’s 2020 biz strategy firmly on track despite COVID-19 setbacks

Monday, 17 August 2020 00:00 - - {{hitsCtrl.values.hits}}

SDB bank has continued its strong showing in the year 2020, displaying great resilience in countering the challenges resulting from the COVID-19 pandemic, and is well on course to meet its business goals for 2020 and beyond.

A transformational SDB bank was able to record a threefold increase in profit year-over-year, with year-to-date net profit totalling Rs. 329 million at the end of 2020 Quarter 2, compared to its performance of Rs. 109 million for the same period last year. This growth in profitability was ably supported by an 18% year-over-year growth recorded in its total asset base, which stood at Rs. 115 billion at the end of June 2020. This is particularly heartening considering a large part of it ran parallel to the COVID-19-impacted stretch.

The bank managed to strengthen its position as a leading bank in the MSME segment, uplifting its significant MSME customer base through novel savings and wealth creation efforts right through the pandemic-affected period.

SDB bank’s MSME-majority shareholder base, composed primarily of the country’s sizable rural and cooperative populations, renders the consistent increase in growth rate for the period all the more noteworthy. A major portion of SDB bank’s paid-in capital contributions come from individuals belonging to this vital segment, and therefore all profits received go right back to them.

Additionally, SDB bank continues to enjoy strong brand and customer confidence across segments, further buoyed by their recent valuation of Rs. 2 billion from global brand valuation consultancy Brand Finance, with a Top 50 listing in their ‘Sri Lanka’s 100 most valuable brands’ annual list.

SDB bank’s profitability increase, high growth rate, and brand value enhancement in spite of the market issues experienced on account of COVID-19, places the bank strongly to make a similarly strong showing in the last two quarters of 2020.

CEO Thilak Piyadigama added, “The bank recently offered a rights issue to fuel SDB bank’s growth plans for 2020 and beyond, and I’m confident our existing shareholders will realise substantial benefits in the coming quarters from this fresh capital raise.”