would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
Sanasa Development Bank PLC (SDB) recorded a 261% increase in its Profit Before Tax (PBT) for Q1 2015 over the same period during the previous year, closing the quarter with Rs. 205.45 million.
Sanasa Development Bank CEO, Nimal C. Hapuarachchi said, “We have increased our focus on our core cliental, improving our service offer and reach to serve them better. This approach is reflected in the positive results we have recorded in the first quarter of 2015. We expect this momentum to continue through the remaining three quarters as well.”
The Q1 performance builds on the momentum created in Q4 2014, which recorded a 450 percent increase in PBT. Interest income for the quarter rose 27 percent to Rs. 1.47 billion year-on-year (YoY). Net Interest Income rose to Rs. 814.54 million on YoY, up by 57%. The increasing demand for credit, contributing to the positive increase in interest income, while interest expenses only rose 3 percent to Rs. 660.82 million.
The Banking segment of SDB’s business made up the bulk of the income, with the segment contributing Rs. 1.18 billion in interest income for the quarter, up from Rs. 807.96 million in Q12014.
Meanwhile, loan impairment provisions dropped 25 percent in Q1 to Rs. 79.43 million. The decline in loan loss impairment is largely attributed to impairment reversals done in 1Q2015 on the recovery of long outstanding non-performing assets.
The Bank was successful in growing its loan book to Rs. 37.69 billion in Q1 2015, an 18 percent increase over 4Q2014. The growth in loans also helped increase the Bank’s total assets to Rs. 46.36 billion, up 14 percent over the 4Q2014. A noteworthy fact is that from the total asset base, 95% are income generating assets.
The Banking segment accounted for a significant part of the assets with Rs. 32.85 billion in Q12015, up from Rs. 18.24 billion in Q12014.
On the liabilities side, deposits grew 16 percent to Rs. 35.16 billion in the quarter, reflecting the increased confidence placed by customers with the Bank and the management’s continued efforts to spread its reach to all segments, while also improving the services offered to its customers. Total liabilities for Q12015 increased 16 percent to Rs. 41.5 billion Quarter-on-Quarter (QoQ).
The savings to deposit ratio was sustained at 22% throughout the period under review. The cost to income ratio improved to 48.01% in 1Q2015 from 62.05% in 4Q2014 resulting in its 2015 cost to income ratio improving to 22.6% on QoQ basis as at 31st March 2015.
Chairperson M. S. Kiriwandeniya stated, “Our longstanding commitment to our customers is reflected in the increase in the overall business. We have a civic responsibility to not only offer banking services to everyone, but also to support them with livelihood opportunities. We have done this since our inception and those customers today are in the SME category. This has given us the opportunity to grow with them and contribute positively to the national economy.”
The bank’s Tier 1 core capital ratio was at a healthy 13.46 percent, well above the minimum requirement at 5 percent. The total capital adequacy ratio was at 13.94 percent, above the statutory requirement of 10 percent.
The liquidity ratio of the bank improved from 21.61 percent as at December 2014 to 22.49 percent at the end of Q12015 and is well above the regulatory limit of 20 percent.
The Return on Equity (ROE after taxes) as a percentage rode to 16.73 percent in the quarter, up from 12.01 percent in the 4Q2014.
The SDB, commenced operations in 1997, and now has a network of 83 branches. The Bank is now moving onto the next level of banking, which entails expanding services to gear itself to cater to the lower end of the SME sector.
Sanasa Development Bank CEO, Nimal C. Hapuarachchi said, “We have increased our focus on our core cliental, improving our service offer and reach to serve them better. This approach is reflected in the positive results we have recorded in the first quarter of 2015. We expect this momentum to continue through the remaining three quarters as well.”
The Q1 performance builds on the momentum created in Q4 2014, which recorded a 450 percent increase in PBT. Interest income for the quarter rose 27 percent to Rs. 1.47 billion year-on-year (YoY). Net Interest Income rose to Rs. 814.54 million on YoY, up by 57%. The increasing demand for credit, contributing to the positive increase in interest income, while interest expenses only rose 3 percent to Rs. 660.82 million.
The Banking segment of SDB’s business made up the bulk of the income, with the segment contributing Rs. 1.18 billion in interest income for the quarter, up from Rs. 807.96 million in Q12014.
Meanwhile, loan impairment provisions dropped 25 percent in Q1 to Rs. 79.43 million. The decline in loan loss impairment is largely attributed to impairment reversals done in 1Q2015 on the recovery of long outstanding non-performing assets.
The Bank was successful in growing its loan book to Rs. 37.69 billion in Q1 2015, an 18 percent increase over 4Q2014. The growth in loans also helped increase the Bank’s total assets to Rs. 46.36 billion, up 14 percent over the 4Q2014. A noteworthy fact is that from the total asset base, 95% are income generating assets.
The Banking segment accounted for a significant part of the assets with Rs. 32.85 billion in Q12015, up from Rs. 18.24 billion in Q12014.
On the liabilities side, deposits grew 16 percent to Rs. 35.16 billion in the quarter, reflecting the increased confidence placed by customers with the Bank and the management’s continued efforts to spread its reach to all segments, while also improving the services offered to its customers. Total liabilities for Q12015 increased 16 percent to Rs. 41.5 billion Quarter-on-Quarter (QoQ).
The savings to deposit ratio was sustained at 22% throughout the period under review. The cost to income ratio improved to 48.01% in 1Q2015 from 62.05% in 4Q2014 resulting in its 2015 cost to income ratio improving to 22.6% on QoQ basis as at 31st March 2015.
Chairperson M. S. Kiriwandeniya stated, “Our longstanding commitment to our customers is reflected in the increase in the overall business. We have a civic responsibility to not only offer banking services to everyone, but also to support them with livelihood opportunities. We have done this since our inception and those customers today are in the SME category. This has given us the opportunity to grow with them and contribute positively to the national economy.”
The bank’s Tier 1 core capital ratio was at a healthy 13.46 percent, well above the minimum requirement at 5 percent. The total capital adequacy ratio was at 13.94 percent, above the statutory requirement of 10 percent.
The liquidity ratio of the bank improved from 21.61 percent as at December 2014 to 22.49 percent at the end of Q12015 and is well above the regulatory limit of 20 percent.
The Return on Equity (ROE after taxes) as a percentage rode to 16.73 percent in the quarter, up from 12.01 percent in the 4Q2014.
The SDB, commenced operations in 1997, and now has a network of 83 branches. The Bank is now moving onto the next level of banking, which entails expanding services to gear itself to cater to the lower end of the SME sector.
