Sampath Bank ups Profit After Tax by 44% to Rs. 17.8 b

Friday, 15 November 2024 00:32 - - {{hitsCtrl.values.hits}}

Chairman Harsha Amarasekera

Managing Director Ayodhya Iddawela Perera

Sampath Bank PLC yesterday reported a profit before tax (PBT) of Rs. 29.9 billion and a profit after tax (PAT) of Rs. 17.8 billion for the nine months ending 30 September 2024, despite an exchange loss of Rs. 3.6 billion due to the LKR’s appreciation.

The bank said 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 billion and PAT of Rs. 19.1 billion, with respective growth rates of 40% and 50%.

Key Financial Metrics for the period ended 30 September 2024 were: 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 billion was incurred due to the LKR appreciation against the USD by Rs. 27.75.

The total impairment charge decreased by 62.6% and LKR loan book grew by Rs. 38 billion.

The LKR deposit portfolio saw robust growth, reaching Rs. 140 billion.

The Tier 1 and Total Capital Adequacy Ratios stood at 16.72% and 19.54%, respectively, comfortably exceeding the regulatory minimum requirements.

Total interest income declined by 9.6% to Rs. 139 billion, 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 billion, impacted by reduced income from trade transactions.

The total impairment charge dropped by 63% to Rs. 5.4 billion, with Rs. 3.1 billion allocated to loans and advances. This improvement is due to prudent provisioning and stronger economic activity, bolstering repayment abilities. Additionally, Rs. 1.2 billion was set aside for financial instruments, covering anticipated losses from restructured Sri Lanka International Sovereign Bonds (SLISB).

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 billion, though the effective tax rate decreased to 54%.

As of 30 September 2024, total assets reached Rs. 1.68 trillion, driven by a Rs. 38 billion increase in LKR loans. Total liabilities increased by 9.6%, with deposits rising to Rs. 1,393.8 billion, contributing to a CASA ratio of 33.9%.