Sanasa Bank records impressive 3Q performance

Sanasa Development Bank has grown tremendously over the past ten years. SDBL General Manager/CEO Nimal J.B. Mamaduwa said the bank's third-quarter performance this year has been outstanding with net interest income as at the end of September having grown by 57% as against the corresponding period last year.

The bank's profit before tax has increased by 30% compared to last year, having made Rs. 120 million this year compared to last years Rs. 92 million before tax.

The bank has also recorded a 35% growth in profit after income after tax with the bank earning Rs. 96 million this year compared to last year's profit of Rs. 71 million. The bank's balance sheet has also seen a healthy growth, achieving a 41% growth in assets this year.

The advance portfolios have increased by 42%, deposits by 41%.

The assets quality of the bank has also improved registering its gross non performing advances ratio at 4.5% this year compared to 4.8% last year, and net non performing advances ratio stands at 3.3% as against 3.6% for the corresponding period last year.

The return on assets ratio stands at 2.4% while the return on equity stands at 20.1%. The bank's equity capital and reserves has shown 47% growth while registering the Tier I and Tier II capital at 11.99% and 11.43% respectively compared with the regulatory minimum of 5% (Tier I) and 10% (Tier II). The operating expenses have shown an increase of 54% mainly due to expenditure incurred in connection with branch expansion.

Despite the high cost of funds and the high operational expenditure the bank's cost income ratio is maintained at 68%.

The bank has at the moment 32 branches islandwide with seven new branches opened this year, three sub branches being upgraded to fully fledged branches and a further 18 branches to be opened up next year with the focus being on rural areas.

Mamaduwa added that the bank hopes to play an active role in development projects in the eastern province as well as the development of sectors like fisheries, agriculture, livestock, textiles and local milk production.