Outstanding performance by Sanasa Development Bank

Sanasa Development Bank PLC (SDB) recorded an outstanding performance for the financial year ending December 2014, with a 103% increase in profitability on top of a 450% increase in profits after tax in the last quarter, as against the corresponding period in 2013.

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 compared to the corresponding period in 2013, a quarterly growth rate of 21% can be seen in the bank's interest income.

In keeping abreast with the market interest rate fluctuations, SDB controlled its borrowing rates effectively. This led to a reduction in interest cost by 5% in 2014, which also led to a surge in the lending portfolio. The bank also earns fees and commission income from lending, card services and other support services provided to clients.

The Bank's net fee and commission income grew by 35% from Rs. 120 million in 2013 to Rs. 162 million in 2014.

This growth was primarily due to the increase in the overall asset base of the bank. Particularly exploiting opportunities for cross selling products and services. As a strategic move, the bank divested its equity investment in Peoples Leasing and Finance PLC in 2014.

The one-off capital gain earned on this has led to an increase in other operating income by 166% in 2014.