SDB bank records strong Q3 performance; set to end year on a high

Tuesday, 27 October 2020 01:56 - - {{hitsCtrl.values.hits}}

SDB bank said in a statement yesterday it was able to extend its strong showing from the first half of the year 2020, maintaining financial momentum in quarter 3 while even recording a considerable profit.

With the resurgence in COVID-19 cases towards the latter part of September, and the resultant stifled economic climate, the bank’s performance is indicative of the adaptable and innovative nature of their setup.

A resilient SDB bank displayed a considerable rise in profit year-over-year, with year-to-date net profit equalling Rs. 603 million by the end of the third quarter in 2020, as opposed to its performance of Rs. 50.9 million for the same period the previous year. Despite the challenges to economic growth experienced, the bank almost met its profit target of Rs. 628 million for the period ending September.

The profitability growth recorded was also complemented by a 15% year-over-year increase in SDB bank’s total asset base, standing at Rs. 123,600 million at the end of September 2020. The significance of their quarter 3 financials are rendered more meritable considering much of it ran alongside the COVID-19-affected stretch in the country, and with the MSME-majority shareholder portfolio they maintain.

The bank said it continued its heavy focus on offering unique savings and wealth creation initiatives to its sizeable MSME customer base, allowing for their continued well-being right through the pandemic-affected period. As a large percentage of SDB bank’s shareholder makeup is composed of the island’s significant rural and cooperative populations, all the profit earned goes right back to this vital segment of the national economy.

“With SDB bank further cementing its standing as the market leader in the all-important MSME segment, while recording a profitability increase and a high growth rate, the bank is well-placed to finish the year on a high with an equally strong display in the final quarter of 2020,” the bank said in its statement.