Sarvodaya Development Finance’s profits and assets soar

Sarvodaya Development Finance PLC has achieved a record-breaking year in terms of financial performance, marking the financial year 2023/24 as one of unprecedented growth and resilience. 

Accordingly, the company reported its highest-ever profits, underpinned by a robust 43.5 percent growth in net interest income and a 45.7 percent increase in total operating income. Despite the challenges amidst a dynamic economic environment, profit before tax surged by 36.4 percent, while profit after tax rose by 12.6 percent to Rs.249.5 million, demonstrating the company’s strategic acuity and operational efficiency.

Sarvodaya Development Finance PLC achieved a growth in total assets of 27.7 percent, significantly outpacing the industry average of 7.7 percent. Meanwhile, the lending portfolio grew by 29.5 percent, compared to the industry average of 4.5 percent and deposits rose by 21 percent, well above the industry’s 8.8 percent. 

The financial robustness of Sarvodaya Development Finance PLC is evidenced by improvements recorded across several other key metrics, including net asset value per share, which increased to Rs.23.87 from Rs.23.06 in the previous year. Meanwhile, return on equity increased to 7.1 percent, from 6.6 percent, while return on assets stood steadily at 1.9 percent level consecutively in current and previous financial periods. The cost to income ratio reduced to 53.9 percent from 63.0 percent, highlighting the company’s success in managing costs amidst high price levels. The company’s liquidity position and capital adequacy ratios also remained robust, meeting and exceeding all regulatory minima, further reflecting its financial stability. 

CEO Nilantha Jayanetti said, “We are immensely proud of our financial performances during 2023/24, which attests to our strategic focus and the dedication of our team. Our record-breaking growth in profitability and asset expansion reflects our commitment to delivering sustainable value to our diverse stakeholders.”
Chairman Channa de Silva also commented saying, “Our broader strategic initiatives underscore our commitment to sustainable development and social responsibility. By focusing on partnerships and innovative practices, we are enhancing both operational efficiency and contributing to our broader goals of financial inclusion and community development.”