SDB bank’s 2024 financials highlight resilience and growth

SDB bank, the only private development bank in Sri Lanka, has demonstrated remarkable resilience and financial strength at the end of 2024 financial year, achieving a profit after tax of Rs.410 million. 

This impressive performance emphasises the bank’s robust strategies and commitment to sustainable growth. The bank’s net fee income saw a significant increase of 36 percent, reaching Rs.584 million, reflecting its ability to adapt and thrive amid volatile interest rates and rising inflation while gaining the net interest margin (NIM) of 5.18 percent for the year 2024, demonstrating the effective interest rate management.

The operating income remained stable, even as the bank provided concessions to customers to ensure their retention and sustainability in the market. Notably, impairment charges for 4Q 2024 dropped by an impressive 69 percent compared to the same period in 2023, showcasing the bank’s effective collection and remediation efforts. The impairment coverage ratio for stage three loans improved significantly, rising from 39.70 percent at end-2023 to 48.33 percent in 2024.

The bank prudently managed its loan portfolio and borrowings, ensuring financial stability and efficiency with a strategic focus on optimising its balance sheet. Deposits remained resilient, reflecting the bank’s commitment to adapting to evolving market conditions and customer needs. Additionally, the bank’s strong liquidity coverage ratio of 279.65 percent underscores its ability to meet short-term financial obligations, positioning it well to navigate market dynamics while maintaining long-term growth and stability.

SDB bank CEO Kapila Ariyaratne stated, “We are proud of our resilient performance in 2024, which reflects our commitment to prudent risk management and customer-centric strategies. Our focus on optimising the balance sheet and maintaining strong liquidity has positioned us well to navigate the dynamic economic environment. As we move into 2025, we remain dedicated to supporting Sri Lanka’s economic recovery and driving sustainable development. Our efforts to foster sustainable financing and build resilient communities are central to our mission of empowering local economies and contributing to a more inclusive financial landscape.”

Sri Lanka’s economic recovery, marked by a 5 percent GDP growth and a significant drop in inflation to -1.7 percent has created a favourable environment for financial institutions like SDB bank. Benefiting from these positive economic reforms, the bank has shown remarkable resilience and strategic foresight.