Sampath Bank to pay Rs. 4.60 dividend solely from 2022 profit

Sampath Bank on Friday clarified that it will pay the proposed dividend solely out of profits of 2022 instead of an earlier plan to partly fund it from current year’s profits.

In its original decision announced on 17 February 2023, Sampath Bank said the Board resolved a cash and scrip dividend on the basis of first and final dividend of Rs. 4.60 per share. This will consist of Rs. 3.45 in the form of cash dividend and the balance Rs. 1.15 in the form of scrip dividend. The proportion of scrip dividend shares will be 1 share for approximately 40.398 shares.

On this basis, the total dividend will cost Rs. 5.26 billion (Rs. 3.95 billion in cash and Rs. 1.3 billion in scrip).

It was to meet the cost on the basis of Rs. 561.3 million out of dividend received and Rs. 4.7 billion out of current year’s profits.

“The bank wishes to state that it has now determined that the dividend shall be funded solely out of the profits for the year 2022,” Sampath Bank said in its filing to the CSE on Friday 24 March 2023.

It also said this computation does not have any impact on the solvency position, dividend payable or to the other applicable regulatory requirements met by the bank for the payment of the dividend.

Sampath Bank registered a Profit Before Tax (PBT) of Rs. 15 billion and a Profit After Tax (PAT) of Rs. 13.1 billion for the year ended 31 December 2022.