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.
Commenting on the results for the first quarter 2015, SANASA Development Bank CEO, Nimal C. Hapuarachchi said, “We have increased our focus on our core cliental, improving our service offer and reach to serve them better. This approach is reflected in the positive results we have recorded in the first quarter of 2015. We expect this momentum to continue through the remaining three quarters as well.”
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.
Meanwhile, loan impairment provisions dropped 25 percent in Q1 to Rs.79.43 million. The decline in loan loss impairment is largely attributed to impairment reversals done in 1Q2015 on the recovery of long outstanding non-performing assets.