SDB Bank, the only private development bank in Sri Lanka, has demonstrated remarkable resilience and financial strength in its 2024 financial year, achieving a Profit After Tax of Rs. 410 million.
This impressive performance highlights the bank’s robust strategies and commitment to sustainable growth. Net fee income increased by 36% to Rs. 584 million, reflecting the bank’s adaptability amid volatile interest rates and rising inflation. The Net Interest Margin (NIM) stood at 5.18%, demonstrating effective interest rate management. Despite market challenges, operating income remained stable, supported by strategic customer concessions to ensure retention and sustainability. A key highlight was the 69% drop in Q4 2024 impairment charges compared to the same period in 2023, showcasing effective collection and remediation efforts. Additionally, the impairment coverage ratio for Stage 3 loans improved from 39.70% in 2023 to 48.33% in 2024, reinforcing prudent risk management.
The bank’s strong financial positioning was further reflected in its well-managed loan portfolio and borrowings, ensuring stability and efficiency. Deposits remained resilient, adapting to evolving market conditions and customer needs. With a robust Liquidity Coverage Ratio (LCR) of 279.65%, SDB Bank is well-equipped to meet short-term financial obligations while maintaining long-term growth.
SDB Bank CEO Kapila Ariyaratne commented: “We are proud of our resilient performance in 2024, which reflects our commitment to prudent risk management and customer-centric strategies. Our strong liquidity and balance sheet optimization have positioned us well to navigate the dynamic economic environment. Moving into 2025, we remain dedicated to supporting Sri Lanka’s economic recovery and fostering sustainable development.”
Sri Lanka’s economic recovery, marked by 5% GDP growth and a significant drop in inflation to -1.7%, has created a favorable environment for financial institutions. Benefiting from these reforms, SDB Bank has shown resilience and strategic foresight. With strong liquidity, prudent risk management, and a focus on customer retention, the bank is well-positioned to support the country’s economic recovery and drive sustainable development.