Sampath Bank seventh in Business Today Top 25 2012-13
Thursday, 14 November 2013 00:00
-
- {{hitsCtrl.values.hits}}
Sampath Bank has moved up to the seventh position in the Business Today Top 25 2012-13, based on its financial performance during the financial year ending 31 December 2012. In the previous year, Sampath Bank was in the 12th position.
With a profit after tax of Rs. 5.1 billion, Sampath Bank recorded an increase of 51.6%. The year 2012 was a year of consolidation with branch expansion and rapid business growth in an environment where the country’s monetary policy was directed at reducing credit expansion and stabilising the banking sector. Loans and advances grew by 23%, while the total assets of the bank grew by 25%.
Supporting regional economic development
The growth over the previous year was due to the bank seeking greater exposure beyond Western Province, in an effort to support regional economic development. Deposits grew by 24% during the year with the maturity of the branch network resulting in better performance. The bank followed a strategy to finance its portfolio through foreign borrowing, by which it was able to raise US$ 62.5 million prior to the imposition of the credit ceiling.
Aligning itself with national priorities, the bank expanded in the north and east, increased exposure to priority areas such as SMEs and, supported the e-Government initiatives as well as foreign currency ATMs to promote tourism.
Greater activity in financial services sector
The Business Today Top 25 2012-13 essentially reflects that the corporates that have always been key players have remained so. This meant that the Sri Lankan corporate sector has the resilience and the acumen to adapt to any environment.
Interpreting the selections, Business Today said that the entry of three finance companies and five banks in the Top 25 indicates that there is greater activity in the financial services sector, where products and services are sought to a much larger extent than previously.
It further commented that the results show that the private sector has recognised the importance of aligning themselves with the national development agenda.
“While the economic environment during the said financial year was somewhat challenging, the corporates looked at ways of increasing productivity while reducing costs. Furthermore, they looked at opportunities not only in Sri Lanka, but also targeted new markets. Innovation, diversification, consolidation and sustainability as well as expansion are areas in which the Top 25 companies have strategised in, thereby ensuring increased revenue though at times profit may have been less than expected.”
The Business Today Top Twenty Five is strictly based on the published information of companies listed in the Colombo Stock Exchange.
Financial criteria considered include share turnover, revenue, profit after tax, growth in sales turnover, growth in profit, return on equity, growth in earnings per share, market capitalisation, value of shares transacted and value addition. Furthermore, weights are assigned to the criteria uniformly without any prejudice.
These are not disclosed due to proprietary reasons.
The Business Today Top 25 have been selected on the basis of their financial performance during the financial year ending 31 December 2012 and 31 March 2013 with the assistance of KPMG Ford Rhodes, Thornton & Co.
