Sampath Bank announced a significant financial performance for the first half of 2024, with a 45% increase in profit after tax (PAT) to Rs. 11.1 billion, up from Rs. 7.7 billion in the same period last year. The profit before tax (PBT) also saw a notable rise, reaching Rs. 18.5 billion, a 40% increase compared to the previous year.
Key Financial Highlights:
- Net Interest Income (NII): Increased by 20.3% to Rs. 41 billion, driven by a substantial decrease in interest expenses despite a 5.7% drop in total interest income.
- Net Fee and Commission Income: Fell by 11% to Rs. 8.7 billion, primarily due to reduced trade-related income and the appreciation of the LKR.
- Impairment Charges: Reduced by 14.6% to Rs. 6.2 billion, with a significant 58% decrease in impairment charges on loans and advances.
- Operating Expenses: Increased by 11.2%, but the cost-to-income ratio improved to 37.5% from 39.8% in 2023.
- Tax Rate: The effective tax rate decreased to 53.8% from 55.9% in the previous period.
Capital and Liquidity Ratios:
- Tier 1 and Total Capital Adequacy Ratios: Improved to 16.98% and 19.96%, respectively.
- Liquidity Ratios: All currency Liquidity Coverage Ratio at 299.48% and Net Stable Funding Ratio at 195.48%.
Assets and Liabilities:
- Total Assets: Increased by 6.4% to Rs. 1.64 trillion, with significant growth in investments and loan portfolio.
- Total Liabilities: Rose by 6.7% to Rs. 1,353.2 billion, driven by an expansion in the deposit portfolio.
External Rating:
Fitch Ratings Lanka Ltd. affirmed Sampath Bank’s National Long-Term Rating at “A(lka)” with a Stable outlook.
Sampath Bank’s impressive financial results highlight its robust performance and strategic management, positioning it well for continued growth.