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| Sunday, 02 April 2006 |
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Wayamba Development Bank pre tax profit up 46% to Rs. 253 million Wayamba Development Bank recorded a healthy pre tax profit of Rs.253 million in 2005, reflecting a growth of 46% over the pre tax profit of Rs. 172 million recorded for the previous year. Despite a very competitive environment the bank was able to increase its operating income by Rs.113 million in 2005 over the previous year. Total operating costs also increased during the year by Rs.40 million due to increased personal cost, provisioning for bad and doubtful debts. According to the Fitch rating Wayamba Development Bank has the largest asset base among the other Regional Development Banks and the Bank's ROA in 2004 was on the high side among Regional Development Banks. Earning per share had gone up from Rs. 5.37 in 2004 to Rs. 7.25 in 2005. The total deposits of the bank have grown by 226% over the last five years. As at December 31, 2005 total deposits increased by Rs.1,557 million over the previous year, recording a growth of 59% despite the aggressive competition in the market. This growth is on a far high side among the Regional Development Banks and other banks. Total loan portfolio has grown by 238.1% over the last six years ended December 31, 2005. Most of the bank's loans were extended to develop small scale projects, small industries and small scale agriculture and fisheries sector activities. Such loans accounted for 68% of total loans. Total advances inclusive of pawning increased by 24% from Rs.3385 million in 2004 to Rs.4186 million in 2005. The bank continues to play a dominant role in the contribution towards developing the social economic infrastructure of the region, and has focused mainly on promoting micro enterprises development in its attempt to find innovative credit delivery methods. Interest rates for priority sector lending were reduced and more credit schemes were implemented covering a wide range of activities. These schemes were primarily aimed at uplifting the living standards of the weaker section of the society, contributing to government initiatives in socio economic progress. Credit disbursement on various development schemes under the cottage industry for the purpose of poverty alleviation totalling Rs.1142.24 million was made during the year for 28,686 beneficiaries. Wayamba Development Bank was set up as a licensed specialised bank in January 1999 under the Regional Development Bank act of 1997, with the amalgamation of three Regional Rural Development Banks, namely Kurunegala, Gampaha and Puttalam. The Bank is primarily involved in micro lending. On completion of six years of operation, it is now highly recognised and trusted by people of the area coming under the purview of the bank. Today the bank extends its services through a total network of 36 branches administered by three zonal offices and has total permanent work force of 387 employees. Empowering the micro, small medium enterprises and upgrading the living standard of salaried employees as the main objective, not only from the financial assistance but also from developing management capability, the bank has made a notable contribution for the development of the region. The annual working and budgetary targets for the year 2005 has been far exceeded with significant achievements and with assets of the bank growing above Rs. 5.8 billion to date. |
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