Sanasa Development Bank PLC, a micro financier based on co-operative model, saw its net profit for the quarter ended March 31, 2015 (1Q15) surging as much as 226 percent year-on-year (yoy) to Rs.200 million amid better interest margins.
As a result, the basic earnings per share improved to Rs.5.44 from Rs.2.26 reported in the corresponding quarter of the previous year.
The net interest income rose 57 percent yoy to Rs.814.5 million amid a 27 percent yoy to Rs.1.47 billion growth in interest income. Interest expenses increased at a much slower pace of 3 percent yoy to Rs.660.8 million.
The net fee and commission income also rose 55 percent yoy to Rs.66.3 million.
Impairments on bad loans reduced 25 percent yoy to Rs.79.5 million.
Personal expenses were up 24 percent yoy to Rs.217.4 million.
The bank’s loan book grew 18 percent in the first three months to Rs.37.6 billion.
This significant expansion of the loan book was funded by a 16 percent increase to Rs.35.1 billion in customer deposits.
The bank’s Core Capital Adequacy Ratio fell to 13.46 percent from 14.89 percent with Total Capital Adequacy Ratio falling from 15.33 percent to 13.94 percent.
However, both remain well above the regulatory requirements.
The total assets of the bank improved 14 percent in the three months to Rs.46.3 billion.
The return on equity stood at 16.73 percent, up 12.01 percent.
The asset quality of the bank improved with gross non performing advances ratio improving to 3.48 percent from 3.76 percent. The net non-performing advances ratio also improved to 1.61 percent 1.73 percent.