Financial Performance Summary
Sampath Bank reported a profit before tax (PBT) of Rs 29.9 Bn and a profit after tax (PAT) of Rs 17.8 Bn for the nine months ending 30th September 2024, despite an exchange loss of Rs 3.6 Bn due to the LKR’s appreciation. This reflects a year-on-year growth of 36% in PBT and 44% in PAT, underscoring strong performance. Sampath Group achieved a PBT of Rs 31.9 Bn and PAT of Rs 19.1 Bn, with respective growth rates of 40% and 50%.
Key Financial Metrics for the period ended 30th September 2024
- Net Interest Income (NII) increased by 14.1%.
- Net fee and commission income decreased by 11.4%, primarily due to a decline in income from trade-related operations.
- An exchange loss of Rs 3.6 Bn was incurred due to the LKR appreciation against the USD by Rs 27.75.
- The total impairment charge decreased by 62.6%.
- The LKR loan book grew by Rs 38 Bn.
- The LKR deposit portfolio saw robust growth, reaching Rs 140 Bn.
- The Tier 1 and Total Capital Adequacy Ratios stood at 16.72% and 19.54%, respectively, comfortably exceeding the regulatory minimum requirements.
Income and Expense Overview
Total interest income declined by 9.6% to Rs 139 Bn, mainly due to lower interest rates, while interest expenses fell by 22.2%, resulting in a 14.1% increase in NII. The Net Interest Margin (NIM) was slightly reduced to 5.01%, driven by lower yields on interest-earning assets. Non-fund-based income also declined, with net fee and commission income at Rs 13.0 Bn, impacted by reduced income from trade transactions.
Impairments and Provisions
The total impairment charge dropped by 63% to Rs 5.4 Bn, with Rs 3.1 Bn allocated to loans and advances. This improvement is due to prudent provisioning and stronger economic activity, bolstering repayment abilities. Additionally, Rs 1.2 Bn was set aside for financial instruments, covering anticipated losses from restructured Sri Lanka International Sovereign Bonds (SLISB).
Operational Expenses and Tax
Operating expenses rose by 15.5%, largely due to salary increments, with personnel costs up by 20.5%. This led to a cost-to-income ratio (CIR) of 38.9%. The tax charge increased to Rs 20.9 Bn, though the effective tax rate decreased to 54%.
Asset and Liability Growth
As of 30th September 2024, total assets reached Rs 1.68 Tn, driven by a Rs 38 Bn increase in LKR loans. Total liabilities increased by 9.6%, with deposits rising to Rs 1,393.8 Bn, contributing to a CASA ratio of 33.9%.
Commitment to Corporate Responsibility
Sampath Bank continues to support Sri Lanka’s socio-economic development through initiatives like ‘Wewata Jeewayak’ for irrigation, ‘A Breath to the Ocean’ for ocean ecosystem preservation, and ‘Sampath Saviya’ for MSME support. Recognised as ‘Asia’s Best Bank for Corporate Responsibility’ by Euromoney in 2024, the Bank’s sustained commitment to impactful community projects underscores its role in building a resilient, sustainable future for all Sri Lankans.
