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SDB Chairman Lakshman Abeysekera[/caption]
Maintaining the growth trajectory displayed in 2020 with a 279% annual profit rise in comparison to 2019, Sanasa Development Bank (SDB) registered an almost threefold increase in profit for the three months ended 31 March 2021, the bank noted issuing a statement.
Equaling Rs. 302 million, this represents a 190% increase in profit from the corresponding quarter last year. For the quarter under review, earnings per share on profit rose to Rs. 3.3 from Rs. 1.9 per share in Q1 2020.
In the first quarter this year, the bank grew the volume of loans (net) amounting to Rs. 5.5 billion, up 5.2%, from the end of 2020. This was reflected in the bank’s fee income as well, closely linked to its loans, up by a considerable 139%. The bank’s asset or loan quality also improved, with a gross non-performing advances ratio of 4.47% for the quarter, a small but significant reduction from 4.54% in 2020.
[caption id="attachment_142096" align="alignright" width="316"]
SDB CEO Thilak Piyadigama[/caption]
Parallelly, the bank maintained healthy Tier 1 and total capital adequacy ratios of 9.44% and 12.71%, respectively, by the end of March 2021, above the regulatory requirements. The bank stated Rs. 9.3 billion in core capital by end-March, having raised Rs. 1.53 billion in their rights issue in November 2020, with another Rs. 4 billion raised in fresh deposits in the period under review, supporting its liquidity further. SDB’s liquidity assets ratio stood above the statutory requirement, at 20.7%.
Perhaps most notably, the bank registered net interest income of Rs. 1.63 billion in Q1 2021, a significant 11% rise from the same period in the previous year. Equally, the bank only had to provide Rs. 156.1 million in possible bad loans during this period, representing a drastic drop from Rs. 413.8 million in the same period in 2020.
SDB’s sustained high performance in Q1 2021 and its loan portfolio growth plus loan quality for the period can be attributed to the bank’s initiatives involving SME development, a nationally critical sector amounting to 52% of national GDP. Together with reputed organisations such as the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), MILCO, and DIMO, SDB bank has offered both one-on-one expert mentorship and technical knowledge plus specialised loans as well as leasing promotions to develop SMEs islandwide.
SDB Chairman Lakshman Abeysekera[/caption]
Maintaining the growth trajectory displayed in 2020 with a 279% annual profit rise in comparison to 2019, Sanasa Development Bank (SDB) registered an almost threefold increase in profit for the three months ended 31 March 2021, the bank noted issuing a statement.
Equaling Rs. 302 million, this represents a 190% increase in profit from the corresponding quarter last year. For the quarter under review, earnings per share on profit rose to Rs. 3.3 from Rs. 1.9 per share in Q1 2020.
In the first quarter this year, the bank grew the volume of loans (net) amounting to Rs. 5.5 billion, up 5.2%, from the end of 2020. This was reflected in the bank’s fee income as well, closely linked to its loans, up by a considerable 139%. The bank’s asset or loan quality also improved, with a gross non-performing advances ratio of 4.47% for the quarter, a small but significant reduction from 4.54% in 2020.
[caption id="attachment_142096" align="alignright" width="316"] SDB CEO Thilak Piyadigama[/caption]
Parallelly, the bank maintained healthy Tier 1 and total capital adequacy ratios of 9.44% and 12.71%, respectively, by the end of March 2021, above the regulatory requirements. The bank stated Rs. 9.3 billion in core capital by end-March, having raised Rs. 1.53 billion in their rights issue in November 2020, with another Rs. 4 billion raised in fresh deposits in the period under review, supporting its liquidity further. SDB’s liquidity assets ratio stood above the statutory requirement, at 20.7%.
Perhaps most notably, the bank registered net interest income of Rs. 1.63 billion in Q1 2021, a significant 11% rise from the same period in the previous year. Equally, the bank only had to provide Rs. 156.1 million in possible bad loans during this period, representing a drastic drop from Rs. 413.8 million in the same period in 2020.
SDB’s sustained high performance in Q1 2021 and its loan portfolio growth plus loan quality for the period can be attributed to the bank’s initiatives involving SME development, a nationally critical sector amounting to 52% of national GDP. Together with reputed organisations such as the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), MILCO, and DIMO, SDB bank has offered both one-on-one expert mentorship and technical knowledge plus specialised loans as well as leasing promotions to develop SMEs islandwide.