The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to if you face any technical difficulties when posting
Display results as :
Advanced Search
Latest topics
CCS.N0000 ( Ceylon Cold Stores)Wed Mar 20, 2024 11:31 amHawk Eye
When Will It Be Safe To Invest In The Stock Market Again?Wed Apr 19, 2023 6:41 amකිත්සිරි ද සිල්වා
Dividend AnnouncementsWed Apr 12, 2023 5:41 pmකිත්සිරි ද සිල්වා
MAINTENANCE NOTICE / නඩත්තු දැනුම්දීමThu Apr 06, 2023 3:18 pmකිත්සිරි ද සිල්වා
SEYB.N0000 (Seylan Bank PLC)Thu Mar 30, 2023 9:25 amyellow knife
The Korean Way !Wed Mar 29, 2023 7:09 amකිත්සිරි ද සිල්වා
In the Meantime Within Our Shores! Mon Mar 27, 2023 5:51 pmකිත්සිරි ද සිල්වා
What is Known as Dementia?Fri Mar 24, 2023 10:09 amකිත්සිරි ද සිල්වා
SRI LANKA TELECOM PLC (SLTL.N0000)Mon Mar 20, 2023 5:18 pmකිත්සිරි ද සිල්වා
THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)Mon Mar 20, 2023 5:10 pmකිත්සිරි ද සිල්වා
Equinox ( වසන්ත විෂුවය ) !Mon Mar 20, 2023 4:28 pmකිත්සිරි ද සිල්වා
COMB.N0000 (Commercial Bank of Ceylon PLC)Sun Mar 19, 2023 4:11 pmකිත්සිරි ද සිල්වා
REXP.N0000 (Richard Pieris Exports PLC)Sun Mar 19, 2023 4:02 pmකිත්සිරි ද සිල්වා
RICH.N0000 (Richard Pieris and Company PLC)Sun Mar 19, 2023 3:53 pmකිත්සිරි ද සිල්වා
Do You Have Computer Vision Syndrome?Sat Mar 18, 2023 7:36 amකිත්සිරි ද සිල්වා
LAXAPANA BATTERIES PLC (LITE.N0000)Thu Mar 16, 2023 11:23 amකිත්සිරි ද සිල්වා
What a Bank Run ?Wed Mar 15, 2023 5:33 pmකිත්සිරි ද සිල්වා
104 Technical trading experiments by HUNTERWed Mar 15, 2023 4:27 pmkatesmith1304
GLAS.N0000 (Piramal Glass Ceylon PLC)Wed Mar 15, 2023 7:45 amකිත්සිරි ද සිල්වා
Cboe Volatility Index Tue Mar 14, 2023 5:32 pmකිත්සිරි ද සිල්වා
AHPL.N0000Sun Mar 12, 2023 4:46 pmකිත්සිරි ද සිල්වා
TJL.N0000 (Tee Jey Lanka PLC.)Sun Mar 12, 2023 4:43 pmකිත්සිරි ද සිල්වා
CTBL.N0000 ( CEYLON TEA BROKERS PLC)Sun Mar 12, 2023 4:41 pmකිත්සිරි ද සිල්වා
COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))Fri Mar 10, 2023 4:43 pmyellow knife
Bitcoin and Cryptocurrency Fri Mar 10, 2023 1:47 pmකිත්සිරි ද සිල්වා
CSD.N0000 (Seylan Developments PLC)Fri Mar 10, 2023 10:38 amyellow knife
PLC.N0000 (People's Leasing and Finance PLC) Thu Mar 09, 2023 8:02 amකිත්සිරි ද සිල්වා
Bakery Products ?Wed Mar 08, 2023 5:30 pmකිත්සිරි ද සිල්වා
NTB.N0000 (Nations Trust Bank PLC)Sun Mar 05, 2023 7:24 amකිත්සිරි ද සිල්වා
Going South Sat Mar 04, 2023 10:47 amකිත්සිරි ද සිල්වා
When Seagulls Follow the TrawlerThu Mar 02, 2023 10:22 amකිත්සිරි ද සිල්වා
Re-activatingSat Feb 25, 2023 5:12 pmකිත්සිරි ද සිල්වා
SAMP.N0000 (Sampath Bank PLC)Wed Nov 30, 2022 8:24 amකිත්සිරි ද සිල්වා
APLA.N0000 (ACL Plastics PLC)Fri Nov 18, 2022 7:49 amකිත්සිරි ද සිල්වා
Banks, Finance & Insurance Sector ChartTue Nov 15, 2022 5:26 pmකිත්සිරි ද සිල්වා
VPEL.N0000 (Vallibel Power Erathna PLC)Sun Nov 13, 2022 12:15 pmකිත්සිරි ද සිල්වා
WATA - WatawalaSat Nov 05, 2022 8:44 amකිත්සිරි ද සිල්වා
KFP.N0000(Keels Food Products PLC)Sat Nov 05, 2022 8:42 amකිත්සිරි ද සිල්වා
Capital Trust Broker in difficulty?Fri Oct 21, 2022 5:25 pmකිත්සිරි ද සිල්වා
IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?Thu Oct 20, 2022 10:13 amකිත්සිරි ද සිල්වා
What Industry Would You Choose to Focus?Tue Oct 11, 2022 6:39 pmකිත්සිරි ද සිල්වා
Should I Stick Around, or Should I Follow Others' Lead?Tue Oct 11, 2022 9:07 amකිත්සිරි ද සිල්වා
DV-2024 Program: Online RegistrationThu Oct 06, 2022 11:26 amකිත්සිරි ද සිල්වා

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

Go down
Posts : 263
Join date : 2014-02-23

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

Fri Nov 06, 2015 8:26 pm
Message reputation : 100% (2 votes)
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.
Back to top
Permissions in this forum:
You cannot reply to topics in this forum