SDB Q3 profit after tax up by 167%

SANASA Development Bank PLC (SDB) closed the nine months as at September 30, 2017 with a pre-tax profit of Rs.526 million, up by 16% over the corresponding period in the previous year. The bank’s quarterly profit after tax (PAT) for 3Q 2017 reported a significant 167% increase against the 3Q 2016.

With these growth rates, SDB recorded a PAT of Rs 331 million, up by 35% on year on year (YoY) basis. The net interest income (NII) increased by24% on YoY basis. When compared to

the 3Q2016, the NII growth was 29% during 3Q2017, which was driven by the growth in business volumes. The faster increase in deposit rates which mirrored market trends due to tight liquidity, resulted in interest expenses increasing by 41% whilst the corresponding increase in interest

income marked a lower rate of 34%.

Impairment charges recorded a 53% increase mainly due to the increase in collective impairment under the retail, SME and leasing portfolios. The individual impairment charges which saw an increase in the same period in the previous year due to fall back in recovery targets on retail,while

leasing portfolios have been fully arrested in 3Q-2017. Expenses recorded a growth of 17% with personnel and other operating expenses contributing towards this increase. The other expense growth of 26% is owing to the increase in business volumes, branding and marketing cost and ongoing business transformation program activities.

Total assets growth of the bank for 9MCY17 is 20%, driven by loan book growth of 19%. The loan book growth in 9MCY17 has been largely driven bythe SME and higher margin retail segments, which now account for roughly 23% and 70% of the loan book respectively.

Commenting on the success in 9-MCY-2017, the Chief Executive Officer of SDB, Nimal C. Hapuarachchi added, “With the recently concluded capital infusion, bank is now poised to grow its loan book with micro, small and medium (MSME) financial products, which is part of the backbone of the economy.”

Speaking on the success, M. S. Kiriwandeniya, Chairperson of SANASA Development Bank PLC stated, “The support received from our shareholders has been immense and I am pleased to see the faith shown by them at this crucial juncture in the bank’s progress.”