SDB bank reported a resilient performance in the first quarter of 2025, underscoring the Bank’s commitment to steady progress, stakeholder value, and long-term sustainability. Despite industry-wide challenges and an ongoing recalibration of funding structures, the Bank remained firmly focused on financial stability, operational efficiency, and inclusive banking solutions.
The Bank recorded a Profit After Tax of Rs. 56 million for the quarter ending March 31, 2025. A key contributor to this result was the 42-basis-point improvement in Net Interest Margin (NIM), which rose to 5.60%, reflecting strategic adjustments to lending rates and an optimised funding mix.
While net interest income dipped slightly year-on-year, the Bank’s fee-based income streams showed strong momentum as Net Fee and Commission Income rose by 53%, reflecting the growing impact of digital adoption and enhanced customer offerings.
In a positive development, impairment charges reduced by 31% compared to Q1 2024, aided by proactive recoveries, risk model refinements, and continued traction in customer remediation efforts.
The Bank’s coverage ratio for Stage 3 loans improved from 47.78% at year-end 2024 to 49.72% as of March 31, 2025, a testament to strengthened credit risk management.
Although the Bank’s total asset base saw a marginal 2% contraction, primarily due to the settlement of high-cost borrowing and currency appreciation, customer loans and advances rose by Rs. 2 billion over the quarter, pointing to gradual credit demand recovery. Simultaneously, SDB bank’s Liquidity Coverage Ratio remained robust at 234.15%, well above regulatory minimums, ensuring confidence across market cycles.
The quarter also recorded administrative expenses increase by 10% year-on-year, mainly due to inflationary pressures and staff cost adjustments. However, the Bank continues to exercise prudent cost controls to maintain overall efficiency.
