SDB bank’s 2024 financials highlight resilience and growth

Wednesday, 12 March 2025 05:12 - - {{hitsCtrl.values.hits}}

SDB bank CEO Kapila Ariyaratne

SDB bank, the only private development Bank in Sri Lanka, has demonstrated remarkable resilience and financial strength at the end of 2024 financial year, achieving a Profit After Tax of Rs. 410 million.

This impressive performance emphasises the bank’s robust strategies and commitment to sustainable growth. The bank’s net fee income saw a significant increase of 36%, reaching Rs. 584 million reflecting its ability to adapt and thrive amid volatile interest rates and rising inflation while gaining the Net Interest Margin (NIM) of 5.18% for the year 2024 demonstrating the effective interest rate management.The operating income remained stable, even as the bank provided concessions to customers to ensure their retention and sustainability in the market. Notably, impairment charges for Q4 2024 dropped by an impressive 69% compared to the same period in 2023, showcasing the bank’s effective collection and remediation efforts. The impairment coverage ratio for Stage 3 loans improved significantly, rising from 39.70% at the end of 2023 to 48.33% in 2024, reinforcing the bank’s prudent risk management approach.

The bank prudently managed its loan portfolio and borrowings, ensuring financial stability and efficiency with a strategic focus on optimising its balance sheet. Deposits remained resilient, reflecting the bank’s commitment to adapting to evolving market conditions and customer needs. Additionally, the bank’s strong Liquidity Coverage Ratio (LCR) of 279.65% underscores its ability to meet short-term financial obligations, positioning it well to navigate market dynamics while maintaining long-term growth and stability.

SDB bank CEO Kapila Ariyaratne said: “We are proud of our resilient performance in 2024, which reflects our commitment to prudent risk management and customer-centric strategies. Our focus on optimising the balance sheet and maintaining strong liquidity has positioned us well to navigate the dynamic economic environment. As we move into 2025, we remain dedicated to supporting Sri Lanka’s economic recovery and driving sustainable development. Our efforts to foster sustainable financing and build resilient communities are central to our mission of empowering local economies and contributing to a more inclusive financial landscape.”

Sri Lanka’s economic recovery, marked by a 5% GDP growth and a significant drop in inflation to -1.7%, has created a favourable environment for financial institutions like SDB bank. Benefiting from these positive economic reforms, the bank has shown remarkable resilience and strategic foresight. With a strong liquidity position, prudent risk management, and a focus on customer retention, SDB bank is well-positioned to navigate market dynamics and support the country’s economic recovery. As Sri Lanka continues to implement structural reforms and stabilise inflation, SDB bank remains committed to driving sustainable development and empowering local communities, ensuring long-term financial stability and growth.

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