The Investor Sentiment - Equity and investments forum for Sri Lankans

Display results as :

Rechercher Advanced Search

Latest topics
» Dividend Announcement
Today at 10:06 pm by nihal123

Today at 7:48 pm by smallville

» රෝගීන් වෙනුවෙන් කැප වන සෞඛ්‍ය සේවාවක් වෙනුවෙන්.....
Today at 9:34 am by AjithR

Today at 9:22 am by කිත්සිරි ද සිල්වා

» අනං මනං! #/+?.<>
Today at 7:51 am by ruwan326

» How Small We are in the universe
Today at 7:29 am by nihal123

» Thread for News on CSE and SL Economy
Yesterday at 8:54 pm by nihal123

» ඉස්සරහට අපි පරදින එකනම් ෂුවර් – ධම්මික ක්‍රිකට් ගැන කතා කරයි
Fri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
Thu Mar 14, 2019 2:46 pm by yellow knife

» Happy Birthday
Thu Mar 14, 2019 1:44 pm by Backstage

Thu Mar 14, 2019 10:57 am by slstock

» HNB.N0000 ( Hatton National Bank PLC)
Thu Mar 14, 2019 10:43 am by gTrade

Wed Mar 13, 2019 6:44 pm by serene

Mon Mar 11, 2019 10:52 am by yellow knife

Sun Mar 10, 2019 8:36 pm by NIRMALSG

Sun Mar 10, 2019 6:40 am by ruwan326

» Mobile Trading: the new BUZZ word in Capital Markets Industry!
Thu Mar 07, 2019 5:58 pm by Brenda John

» MGT.N0000
Sun Mar 03, 2019 2:48 pm by Hawk Eye

Sun Mar 03, 2019 8:57 am by Jana1

» Should such people be trusted and help anymore?
Sun Mar 03, 2019 4:42 am by pjrngroup

» The messenger who couldn't deliver a message
Wed Feb 27, 2019 5:56 pm by Backstage

» SHL.N0000 (Softlogic Holdings PLC)
Wed Feb 20, 2019 8:23 am by ruwan326

» Importance of 2019 government budget
Tue Feb 19, 2019 12:13 pm by කිත්සිරි ද සිල්වා

» Emir of Qatar on a private visit to Sri Lanka till February 22
Tue Feb 19, 2019 11:19 am by Backstage

» දේවදත්තගෙන් අපායේ සිට මෛත්‍රී බුදුන් වහන්සේට එවන ලද ලිපිය...~~~
Fri Feb 15, 2019 8:24 am by ruwan326

» CONN.N0000
Wed Feb 13, 2019 8:09 pm by ruwan326

» SERV - The Kingsbury
Wed Feb 13, 2019 8:08 pm by ruwan326

Wed Feb 13, 2019 7:53 pm by ruwan326

» KVAL.N0000
Wed Feb 13, 2019 7:36 pm by ruwan326

» HAYC - Haycarb
Wed Feb 13, 2019 7:24 pm by ruwan326

» DIPD.N0000 (Dipped Products)
Wed Feb 13, 2019 7:22 pm by ruwan326

» මහජනතාව බල ගැන්වෙම්න් සිටී…
Tue Feb 12, 2019 8:23 pm by ruwan326

» VFIN - where the journey leads it?
Mon Feb 11, 2019 7:35 pm by ruwan326

» PLC.N0000 ( People's Leasing and Fiance PLC)
Mon Feb 11, 2019 7:31 pm by ruwan326

» LFIN - LB Finance
Mon Feb 11, 2019 7:25 pm by ruwan326

» Sri Lanka urged to develop own narrative of China’s BRI
Mon Feb 11, 2019 2:50 pm by Backstage

» Wonder why men send photos of their genitals? Here are some theories
Mon Feb 11, 2019 11:01 am by Backstage

» Flying is the Safest mode of Transport
Sat Feb 09, 2019 8:12 am by කිත්සිරි ද සිල්වා

Thu Feb 07, 2019 2:24 pm by Ethical Trader

» Lanka named top tourist destination for 2016
Wed Feb 06, 2019 2:29 pm by කිත්සිරි ද සිල්වා

» A Bit of History
Wed Feb 06, 2019 2:18 pm by ruwan326

» AMF.N0000
Thu Jan 31, 2019 6:56 am by serene

» IOC Sri Lanka unit December quarter loss widens to Rs987mn
Mon Jan 28, 2019 11:02 am by ruwan326

» මූර්ත පොළියෙන් ශ්‍රී ලංකාව අංක 1ට – බ්ලූම්බර්ග් අනාවරණය කරයි
Mon Jan 21, 2019 7:18 pm by nihal123

» Obituary Notice.
Mon Jan 21, 2019 7:14 am by කිත්සිරි ද සිල්වා

» Trading Journal
Sun Jan 20, 2019 5:53 am by serene

» LDEV - Lankem Developments
Fri Jan 18, 2019 2:11 pm by ruwan326

» විශිෂ්ඨ සිල්ලර වෙළෙන්දෙකුගේ ජීවිත කතාව
Thu Jan 17, 2019 12:15 pm by Ethical Trader

» AAIC.N0000
Wed Jan 16, 2019 9:50 pm by serene

» இனிய பொங்கல்
Tue Jan 15, 2019 9:15 pm by nihal123

March 2019

Calendar Calendar


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

SANASA DEVELOPMENT BANK PLC (SDB.N : LKR.156.1)------Softlogic Equity Research

Go down

SANASA DEVELOPMENT BANK PLC (SDB.N : LKR.156.1)------Softlogic Equity Research

Post by CSE.SAS on Fri Nov 06, 2015 8:26 pm

Click the below link to download the Report of SANASA DEVELOPMENT BANK PLC (SDB.N : LKR.156.1)------Softlogic Equity Research

[You must be registered and logged in to see this link.]

SANASA Development Bank (SDB) is a licensed specialized bank in Sri Lanka with a competitive advantage of lending to high risk, yet high return - informal and ‘non-bankable’ sectors through their unique wholesale lending franchise. SDB lends to the SANASA Societies which ultimately lends / distribute the funds to the end customers, thereby reducing the overall risk exposure and allowing SDB to maintain NPL’s below 3.5% since 2015, with NIMs above 7%. Accounting for a total asset base of LKR52.7 bn (USD373.4 mn) and a branch network of 85. SDB primarily caters to a separate niche market, the rural micro and SME sectors of the country. Currently, the bank is well capitalized with a Tier I CAR at 11.9% and Tier II CAR at 12.4% strengthened by a healthy loan book and deposit growth.

Net earnings grew 59.3% YoY to LKR166.2 mn in 3Q15. SDB’s net earnings for 3Q15 grew by c.59% YoY backed by the strong performance in core banking operations and Leasing & HP segments. NII increased by 32.2% YoY though net fee & commission income dipped by 6.1% YoY to LKR61.2 mn. Moreover, total impairments saw a notable decrease of c.110% YoY due to the recoveries made during the quarter. Thus, total operating income inclined by 26.3% YoY despite total operating expenses growing by 40.8% to LKR580.1 mn and caused the bank’s cost to income ratio (excluding prov.) increase to 63.1% cf. 56.6% in 3Q14. Meanwhile, SDB’s aggregate net earnings stood at LKR580.0 mn (+84% YTD) with NII at LKR2.5 bn (+46% YTD) and net fee & commission income at LKR188.7 mn (+30% YTD).

Net Interest Income (NII) growth of 32.2% YoY to LKR841.0 mn was backed by the interest income rising c.41% YoY to LKR1.7 bn as SDB’s net loan book grew 70.2% YoY (+35% YTD) to LKR43.2 bn. Also a c.741.1% YTD increase to LKR2.5 bn was recorded from investments held-to maturity. However, SDB’s interest expense also witnessed an increase of c.52% YoY) to LKR876.3 mn in 3Q15 contributed by the bank’s deposit growth of 43.2% YoY (+30% YTD) to LKR39.4 bn and other borrowings increasing by c.48% YTD to LKR6.8 bn. Further NII grew by c.46% YTD to LKR2.5 bn backed by the bank’s strong performance in core banking operations whilst Net Interest Margins (NIMs) were sustained at 7.3% as at 3Q15.

Non-interest income dipped c.6% YoY to LKR61.2 mn backed by the c.6% YoY decrease in fee & commission income to LKR61.8 mn and an increase in fee & commission expenses by c.15% YoY to LKR0.5 mn. Non-interest income grew by c.30% YTD to LKR188.7 mn backed by the c.29% YTD growth in fee & commission income mainly from core banking operations with expenses declining by c.10% YTD to LKR1.7 mn.
Gross NPL’s improved to 3.0% in 3Q15 from 5.0% in 3Q14 backed by SDB’s unique wholesale lending franchise through the SANASA societies, lower exposure to pawning and efficient credit disbursement processes. Further net NPLs of the bank also improved to 0.4% in 3Q15 from 2.8% in 3Q14.
The voting share offers good value. Stock is attractive at the current price as it trades on 1.2x PBV and 8.1x four quarter trailing PE (both at a discount to the banking sector by c.14% to the sector PBV of 1.4x and c.16% to the sector PE of 9.7x). Further SDB also had an increase in ROE, dividend per share and dividend yield in 2014, mainly due to the healthy turnaround in performance from 2013. Therefore, with the expected growth in the SME sector of the country and SDB’s unique wholesale lending franchise, the growth trajectory would boost SDB’s performance in the coming months.


Posts : 263
Join date : 2014-02-23

Back to top Go down

Back to top

Permissions in this forum:
You cannot reply to topics in this forum