SDB gathers momentum

Thursday, 16 October 2014 00:34 - - {{hitsCtrl.values.hits}}

SANASA Development Bank PLC (SDB) recorded a healthy performance during the first half of 2014, with a profit after tax of Rs. 227 million as against Rs. 210 million in the corresponding period in 2013. Despite lackluster demand for credit amidst relatively low interest rate regime prevailed across the banking industry, performance for the quarter was up by 134% in terms of post-tax profit. Interest income for the first six months of 2014 grew by 7% to reach Rs. 2.33 billion while maintaining the interest expense at the same level as recorded over the corresponding period of the previous year. Consequently, net interest income for the period reached to Rs. 1 billion mark, reflecting an improvement of 17% over the first half of 2013.

Abeykoon Paiyadasa and G. Ruparatne, ‘Upahara’ customers of Anuradhapura and Kandy branches accepting their loans from Minister of Economic Development, Basil Rajapaksa at the grand launching ceremony held at The Kingsbury Hotel on 29 September 2014. Galle District MP Manusha Nanyakkara, the founder of Sanasa Movement Dr. P.A. Kiriwandeniya, Chairperson Sanasa Development Bank Samadani Kiriwandeniya, Director General of Pensions Sunil Hettiarachchi, General Manager Sanasa Development Bank Nimal C. Hapuarachchi, Country Manager, Adam Sack of IFC and other distinguished guests graced the occasion Net fees and commission income recorded a growth of 8% mainly attributable to the improved performance demonstrated by fee based income services. Predominantly fee income generating products and services have been added to bank’s portfolio in the recent past. The impairment provision for the period recorded a significant improvement over the corresponding period of the previous year, driven by the aggressive recovery efforts of the bank. Retail loan book have shown a significant improvement in portfolio quality whilst leasing book impairment has remained at levels reported in the previous period. The trend in impairment of pawning portfolio has also shown improvement during the period under review and it is expected to improve further during the second half of 2014. Operating expenses recorded an increase of 22% over the previous period mainly on account of revision of personal cost. Head count increase of 93 during the year has been mostly deployed at branches and recoveries areas whilst the increase in support functions has been minimal. The Bank’s total assets reached Rs. 32.7 billion as at 30 June 2014, a 10% growth since 31 December 2013. Loans and receivables stood at Rs. 23.5 billion, a growth of 7% since 31 December 2013. Total deposits grew by Rs. 3.23 billion over six month period to reach Rs. 26.83 billion as at 30 June 2014. The core capital remaining at Rs. 3.0 billion with tier 1 ratio of 12.66% and total capital adequacy ratio of 12.77% at 30 June 2014, despite a drop over December 2013, levels were maintained above specified minimum levels. The drop is mainly attributable to the dividend pay-out impacting retained earnings. The liquidity ratio of the bank stood at 27.81% at 30 June 2014, which is well above the regulatory limit of 20%. Sanasa Development Bank’s General Manager/CEO Nimal C. Hapuarachchi said that, “The strong foundation laid during the first quarter of 2014 led SDB’s success in first half of 2014 and the same strength will undoubtedly enable SDB to reach greater heights during the second half of 2014.”