Latest news with #SabahDevelopmentBankBerhad
Daily Express
4 days ago
- 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
The Star
5 days ago
- Business
- The Star
SDB reduces annual loss to RM86mil, targets profit in FY2025
KOTA KINABALU: Sabah Development Bank Berhad (SDB) has significantly reduced its annual pretax loss to RM86mil, down from RM878mil the previous year. In a statement on Tuesday (July 1), the bank reported a net loss for the financial year ending 2024 of RM82mil, marking a substantial improvement from RM684mil previously. This recovery is attributed to earlier provisions for non-performing loans (NPLs) and impaired assets. SDB announced that it is now on track to post a modest profit for the financial year 2025. This turnaround is part of a three-year transformation plan initiated in the second half of 2023 under a new board and management. The bank's total capital ratio, which had dropped to 7.9% by the end of 2023, has since rebounded to 20.71% as of the end of 2024 with support from the Sabah state government. On June 4, RAM Rating Services Berhad reaffirmed SDB's debt instrument ratings at AA1/Stable/P1. According to the statement, the ratings indicate a high level of safety for financial obligations and strong short-term payment capacity. SDB also highlighted a shift in lending focus towards Sabah-based development projects, particularly in infrastructure, water, and power. From January 2024 to June 2025, the bank approved RM1.763bil in financing under this mandate, while rejecting RM9.646bil worth of applications that did not meet its tightened credit standards. To address legacy debts, the bank established an independent recovery team in September 2023. As of June this year, the board has approved RM965mil in settlement proposals, with another RM2bil in pledged securities placed under receivership. The statement comes as SDB continues to rebuild investor confidence following disclosures last year about its financial position. In July 2024, the new board lodged a report with the Malaysian Anti-Corruption Commission (MACC) after discovering that nearly RM5bil — around 75% of its RM6.6bil loan portfolio — were non-performing. The bank also replaced its external auditor in September 2024, appointing Forvis Mazars PLT to succeed Ernst & Young after reporting an RM878mil pretax loss in FY2023. Since then, SDB has launched legal recovery proceedings and placed several delinquent borrowers under receivership.
