COLOMBO: SANASA Development Bank PLC (SDB) recorded an outstanding performance for the financial year ending December 2014, with a 103% increase in their profitability for the year on top of a 450% increase in profits after tax in the last quarter, as against the corresponding period in 2013. With these growth rates, SDB recorded a profit after tax of Rs. 504 million during 2014.
Other performance indicators also reflected significant increases indicating a definite growth trend in the bank’s performance in the year ending 2014.
The Total Interest Income grew by 10% on YOY basis. When comparing with the corresponding period in 2013, a quarterly growth rate of 21% can be seen in bank’s interest income.
In keeping abreast with the market interest rate fluctuations, SDB managed to control its borrowing rates effectively.
This has led to a reduction in interest cost by 5% in 2014, which also led to a surge in the lending portfolio.
The impairment provision for loans and advances for the year ended 31 December 2014 was Rs. 204.389 million as against Rs. 324.620 million provisions made in 2013.
The 58% significant decline in the impairment charge in last quarter of 2014 over the comparative period was primarily due to one-off provision made against pawning advances made during last quarter of 2013.
Total operating expenses recorded an increase of 20% over the previous year mainly on account of revision of personal cost and the new recruitments made in preparation for the expansion of branch network in 2015.
The Bank’s total assets reached to landmark amount of Rs.40.5 billion in December 2014, a 36% growth since 31st December 2013.
Both lending portfolios and deposits bases grew; lending from LKR 22 billion in 2013 to LKR 32 billon by 2014. Similarly deposits grew from LKR 23 billion in 2013 to LKR 30billion in 2014 reflecting a 28% increase in business over the previous year.
At the end of 2014, the bank’s Tier 1 core capital ratios were also at healthy levels with 14.89% whereas the minimum requirement is at 5%. The total capital adequacy ratios was 15.3% whereas the statutory requirement is 10 per cent.
The liquidity ratio of the bank stood at 21.61% at December 2014, which is well above the regulatory limit of 20%.
Commenting on the success in 2014, the Chief Executive Officer of SDB, Nimal C. Hapuarachchi added, “Over the years, we have been able to support a large number of individuals, households and communities across the country, to empower themselves from the grassroots level to a sustainable level of growth in the medium and long term through responsible financing,” Hapuarachchi said.
Speaking on the success, Mrs. 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 showed by them in the Rights issue at this crucial juncture in the bank’s progress, the Chairperson said.
