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Monday, 14 February 2011 00:39 - - {{hitsCtrl.values.hits}}
Sampath Bank on Friday hinted that it was the best performer in the industry in 2010, especially in comparison to two other major players, on business growth amidst stiff competition.
Having the advantage of coming out first with provisional results for 2010, Sampath Bank said that its deposits topped the Rs. 150 billion mark with a 19.4% growth (or Rs. 24.4 billion) to finish the year at Rs. 150.5 billion as opposed to the industry average of 15.6%.
Its advances grew by 30.3% or Rs. 30 billion to Rs. 128.6 billion whilst the industry growth was 26%. Sampath Bank’s assets rose by 18.5% or Rs. 28.9 billion to Rs. 185 billion, above the industry average of 16.2%.
Sampath Bank’s major competitors, the industry’s biggest private sector player Commercial Bank and the second largest HNB, are yet to release 2010 results.
As per end third quarter results, Sampath Bank ranked first in terms of growth on deposits and advances, whilst on the assets race Commercial Bank was number one.
The Non Performing Loans ratio of Sampath Bank was 3.95% lower in comparison to 5.3% of the industry whilst the bank has a provision cover of 88.9%, up by 34.5% from 2009. Its quest for loan growth was without comprising quality, officials said.
Sampath Bank also announced a hefty 57% increase in its net profit to Rs. 3.3 billion, which was thrice the value of net profit achieved in 2007.
Managing Director Harris Premaratne said key features of impressive results in 2010 were a strong balance sheet, equally strong profits, unparalleled value to shareholders and a record 40 units expansion in branch network, in addition to having the largest private sector bank presence in the north and east.
Post-tax profit growth rates of the bank and group were much higher than those at the -tax figure (Rs. 4.5 billion up by 13.2%), mainly due to three tax free income accrued to the bank in the first half of 2010. They were realised capital gain of Rs. 655 million through the sale of LankaBangla bonus shares; reversal of impairment provision of Rs. 1.3 billion upon recovery a foreign currency bond; and market to market gains of Rs. 333 million as against Rs. 152 million realised in 2009. These three totalled Rs. 2.3 billion, which is 70% of Sampath Bank’s bottom line.
Executive Director and Group CFO Ranjith Samaranayake said growth in balance sheet and profit and loss account were achieved without compromising each other.
“Sampath Bank is a stable, fast growing, dynamic and profitable bank which is creating substantial value for all stakeholders,” he added.
The bank also said that the growth momentum achieved in 2010 would be maintained in 2011.
