Sampath Bank posts Rs 7.1 bn PAT, Rs. 9 bn PBT
Despite the prevailing economic turmoil, Sampath Bank posted a commendable PAT of Rs 7.1 billion and PBT of Rs. 9 billion for the period ended 30th June 2022, reflecting a minor increase of 0.3% and slight decrease of 5.5% respectively compared to the figures declared in 1H 2021.
In the meantime, the Group declared a PAT of Rs 7.4 billion and PBT of Rs 9.6 billion, denoting a decline of 2% and 5.5% respectively over the first half of 2021. Total interest income increased by 41.1 % year on year to Rs 59.2 bn in the first half of 2022, compared to Rs 41.9 bn in the same period of the previous year. This significant increase in interest income is due to the upward trend in interest rates in the first half of 2022. The AWPLR at the end of the reporting period reached 22.62%, which is 1,711 bps higher than the rate reported on 30th June 2021.
Interest expenses increased by 22.6 % compared to the corresponding period of last year due to the rising interest trend. The Bank’s total interest expense was Rs 27.8 bn at the end of the current reporting period compared to Rs 22.7 bn reported in 1H 2021. The Bank recorded a significant increase of 69.9% in its net fee and commission income (NFCI) in 1H 2022 compared to the same period of the previous year. During the first half of 2022, net other operating income increased to Rs 16 bn, an unprecedented 378% increase compared to Rs 3.4 bn recorded in the corresponding period of the previous year. This was mainly due to the 80% depreciation of the rupee against the US Dollar. Continuing to act prudently, the Bank recognised a total impairment charge of Rs 28.2 bn for 1H 2022 compared to Rs 5 bn reported in the corresponding period of last year, representing a 464% increase. In order to absorb the possible losses, the Bank decided to increase the allowance for overlay against the tourism sector customers. The Bank provided Rs7 bn against SLISBs and Rs 11.8 bn against SLDBs as at June 30, 2022.
Operating expenses for the first half of 2022 amounted to Rs 13.7 bn, a 24.3% increase from the Rs 11 Bn recorded for the first half of 2021. The primary reason for the increase in operating expenses was an increase in the inflation rate, which rose significantly during the first six month of 2022. The Return on Average Shareholders’ Equity (after tax) increased to 12.06% as of 30th June 2022 compared to 11.05% reported at the end of the year 2021.
Throughout 1H 2022, the Bank maintained all of its capital ratios well above the regulatory minimum requirements. The Bank maintained a strong position with regard to its capital ratios with sufficient buffers to absorb any shocks that may result from economic uncertainties. At the end of June 2022, Sampath Bank’s total assets surpassed Rs. 1.3 tn, denoting an increase of Rs. 122 bn (annualized growth of 20.2%) from Rs 1.2 tn as of December 31, 2021.
Total advances grew by 29.7% (annualized) in 1H2022 to reach Rs 933 bn as at June 30, 2022, up from Rs 813 bn at the end of December 2021.