SANASA Development Bank takes Q1, 2015 results to a new high

SANASA Development Bank PLC (SDB) recorded a 261% increase in its Profit Before Tax (PBT) for Q1 2015 over the corresponding period in 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 clients, 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.

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 QoQ. Chairperson of SANASA Development Bank, Mrs. M. S. Kiriwandeniya said, "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 service to everyone, but also to support them with livelihood opportunities."

The bank's Tier 1 core capital ratio was at a healthy 13.46 percent, well above the minimum five percent. The total capital adequacy ratio was at 13.94 percent, above the statutory requirement of 10 percent.