Sanasa Development Bank make record Q1 profits

Sanasa Development Bank PLC (SDB) recorded a 261% increase in its Profit Before Tax (PBT) for Q1 2015 over the same period in the previous year, closing the quarter with Rs. 205.45 million.

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 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 March 31, 2015.

The bank's Tier 1 core capital ratio was at a healthy 13.46 percent, well above the minimum of 5 percent. The total capital adequacy ratio was at 13.94 percent, above the statutory need of 10 percent.