SDB on the move sharp rise in quarterly profits
View(s):A surge in profits in the last quarter (ending September 2017) at SANASA Development Bank PLC (SDB) comes just as the bank prepares to roll out by December 31, 2017 its business transformation programme project “Quantum Leap”.
Quarterly post-tax earnings rose by a significant 167 per cent against the 3Q2016. With these growth rates, SDB recorded a post-tax profit of Rs. 331 million for the nine months ending September, up by 35 per cent on a year-on-year basis.
In a media statement, the bank said the new project envisages encompassing large revenue generating pillars. “First being the customer value proposition (CVP) development to enhance the apex banking role for SDB for their specialised market niche of cooperative sector and diversifying into expanding apex as well as building new propositions to target specific retail and SME banking. Second being the branch Optimisation Programme (BOP) – with a focus upon enhancing the role of the branch in sales productivity as well as establishing lean operations environment,” it said.
SDB CEO Nimal C. Hapuarachchi said, “Over the years, we have been able to support a large number of individuals, households and communities across the country, to empower themselves from the grassroots level to a sustainable level of growth in the medium and long term through responsible financing”.
Speaking on the success of the bank, Ms. M.S. Kiriwandeniya, SDB Chairperson said, “While we are gearing ourselves to step into the next level of service in the SME sector, we are also constantly keeping our pulse on the needs of our core clientele and improvising products to suit their needs and demands. In fact this key factor has been SDB’s core strength in the past and SDB will continue to serve our existing customer base to the fullest,” she added.
The retail and SME loan book have shown an improvement in portfolio quality whilst leasing book impairment has remained at levels reported in the previous years.
Under the ongoing business transformation programme the bank has been repositioning itself in order to increase its exposure to the MSME segment as its core micro customer base is ready to graduate as MSMEs.