Latest news with #RM878
Daily Express
01-07-2025
- Business
- Daily Express
Sabah Development Bank Berhad slashes pre-tax losses to RM86 million from RM878 million
Published on: Wednesday, July 02, 2025 Published on: Wed, Jul 02, 2025 Text Size: The bank approved RM1.763 billion in loans within its development mandate between January 2024 and June 2025, while rejecting RM9.646 billion in applications that fell outside its scope. Kota Kinabalu: Sabah Development Bank Berhad (SDB) recorded a dramatic financial recovery, slashing its pre-tax losses by 90 per cent to RM86 million in 2024, down from RM878 million the previous year. In a statement Tuesday, the state-owned bank attributed the improvement to its ongoing transformation programme launched in late 2023 under a new leadership. The bank expects to return to profitability in FY2025. 'This progress reflects positive momentum in SDB's ongoing 3-Year Transformation Journey,' SDB said, in a statement, noting that extensive provisions for bad loans and asset write-downs had contributed to the heavy losses in 2023. The bank's financial health has strengthened considerably, with its capital ratio recovering from 7.9 per cent at end-2023 to 20.71 per cent by December 2024, supported by the Sabah Government. RAM Rating Services Berhad (RAM) affirmed SDB's strong AA1 credit rating in June, citing high payment safety and stable outlook. The SDB has refocused its operations on financing Sabah's development projects, particularly in infrastructure, power and water sectors. The bank approved RM1.763 billion in loans within its development mandate between January 2024 and June 2025, while rejecting RM9.646 billion in applications that fell outside its scope. The bank has also made progress tackling non-performing loans through a dedicated recovery team, with RM965 million in settlement proposals approved and RM2 billion in pledged securities under receivership. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
01-07-2025
- Business
- Borneo Post
Sabah Development Bank's losses drop significantly
— Photo from Sabah Development Bank website KOTA KINABALU (July 1): Sabah Development Bank Berhad (SDB) on Tuesday announced a significantly reduced pretax loss of RM86 million (net loss of RM82 million) for the financial year ended 2024. This marks a notable improvement from the substantial pretax loss of RM878 million (net loss of RM684 million) recorded in the previous year, primarily due to extensive provisions for Non-Performing Loans (NPLs) and diminished asset values accumulated over the past years. SDB expects to report a modest profit in FY2025. This progress reflects positive momentum in SDB's ongoing 3-Year Transformation Journey, which commenced in the second half of 2023 under a new board and management. Following a rigorous restructuring exercise, the Bank's total capital ratio had dropped to 7.9% by end 2023. However, as of end-2024, the capital ratio has rebounded to a strong 20.71%, backed by strong support from the Sabah State Government. On 4 June 2025, RAM Rating Services Berhad (RAM) affirmed SDB's debt instrument ratings at AA1/Stable/P1. The AA1 rating indicates a high safety for payment of financial obligations, while the 'Stable' outlook reflects RAM's expectations that the long-term rating will be unchanged over the intermediate term. The Bank's Commercial Papers were also affirmed at P1, the highest short-term rating assigned by RAM, reflecting high safety for payment of short-term obligations. In alignment with its mandate from the State Government, SDB is now focused on financing development projects in Sabah, predominantly in the infrastructure, power and water sectors. The State has positioned SDB as the lead lender for local-content in major investment projects, reinforcing its pivotal role in driving Sabah's economic growth. Between January 2024 to June 2025, SDB approved RM1.763 billion loan applications within its developmental mandate. During the same period, the Bank turned down RM9.646 billion in loan applications that either fell outside its mandate or did not meet its enhanced credit standards. Since the setup of an independent professional recovery team in September 2023, notable progress has been made in addressing the NPLs. The Bank's Board has approved RM965 million in settlement proposals. This is in addition to RM2 billion in pledged securities currently placed under receivership.
