SDB bank records outstanding performance in 1H, 2021 | Sunday Observer

SDB bank records outstanding performance in 1H, 2021

5 September, 2021

SDB recorded a 53% increase in profits for the six months ended June 30, 2021 compared to the corresponding period last year. 

The bank recorded 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% 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% year on year growth, while its Net Fee and Commission Income grew up 52% compared to last year. Total operating income grew by 10% 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 said.

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% 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% for the first half of the year, with its loan portfolio growing by 18% year on year. While the NPL ratio was controlled at 4.77%, the net non-performing advance ratio slightly deteriorated to 1.87% in Jun 2021 from 1.79% 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% for the first half of year (Dec 2020 to Jun 2021), with the deposit portfolio growing by 22% 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%, whereas the year on year growth of total assets increased to 20%.