SDB bank records 53% profit increase in the first half despite pandemic

SDB bank is renowned for its dedication to be a leading partner of national development. 

This commitment has paid off for the bank which recorded a 53 percent increase in its profit for the six months ended 30 June, compared to the same period last year. 

A leading financial value creator in Sri Lanka, devoted to fulfilling its promise to multi-stakeholder groups, including the country’s rural sector, small and medium (SME) enterprises and women entrepreneurs, recorded an exceptional Rs. 502 million in profits from total comprehensive income from January to June this year. 

This achievement rides on the bank’s positive growth trajectory displayed in 2020, where it recorded a whopping 279 percent annual profit rise compared to 2019, further complemented by its strong performance in the first quarter of 2021.

The bank’s Net Interest Income amounted to Rs. 3,169 million for the first six months of this year – a 9 percent year on year growth, while its Net Fee and Commission Income grew up 52 percent compared to last year. Total operating income grew by 10 percent year on year for the period, reaching Rs. 3.5 billion.

“SDB bank has been steadfast in its growth and performance throughout the pandemic that has crippled many organisations, and the reason lies in the bank’s commitment to its long term objectives and its innovative mindset which is translated into a range of new products we’ve launched to cater to the needs of our customers during these trying times,” said SDB bank CEO Thilak Piyadigama. 

“Our positive performance in the first six months of the year is very encouraging and we are thankful to all our customers and stakeholders across the island for placing their trust in us,” he averred, adding that the bank is propelled to fuel an ambitious growth drive in the next half of the year.  SDB bank increased its impairment cost in the second quarter considering the increased risks and uncertainties prevailing due to COVID 19 and in compliance with the stringent controls over NPL and Bucket movements which resulted in reducing the bank’s impairment cost by 24 percent year on year.

The bank recorded Rs. 108.6 billion net in its loan book as of 30 June 2021, at a growth rate of 6 percent for the first half of the year, with its loan portfolio growing by 18 percent year on year. While the NPL ratio was controlled at 4.77 percent, the net non-performing advance ratio slightly deteriorated to 1.87 percent in Jun 2021 from 1.79 percent in Dec 2020 due to prudent provisioning. SDB bank’s deposit portfolio reached to Rs. 98.9 billion (net) as at 30 June 2021, at a growth rate of 6 percent for the first half of year (Dec 2020 to Jun 2021), with the deposit portfolio growing by 22 percent year on year. By the end of June, the bank’s total assets increased to Rs.137.42 billion at a growth rate of 6 percent, whereas the year on year growth of total assets increased to 20 percent.

The bank’s strong performance in the first half of the year is encouraging and testament to its growth-centric operating philosophy. In addition, its recently ended Secondary Public Offering (SPO), which was successfully completed with a significant oversubscription, will fuel the SDB bank’s future growth momentum.