Sampath Bank reported a profit before tax (PBT) of Rs 29.9 Bn and a profit after tax (PAT) of Rs 17.8 billion for the nine months ending 30th September 2024, despite an exchange loss of Rs 3.6 billion due to the LKR’s appreciation.
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 Bn and PAT of Rs 19.1 Bn, with respective growth rates of 40% and 50%.
Total interest income declined by 9.6% to Rs 139 Bn, 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 Bn, impacted by reduced income from trade transactions.
The total impairment charge dropped by 63% to Rs 5.4 Bn, with Rs 3.1 Bn allocated to loans and advances. This improvement is due to prudent provisioning and stronger economic activity, bolstering repayment abilities.
Additionally, Rs 1.2 Bn 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 Bn, though the effective tax rate decreased to 54%.
As of 30 September 2024, total assets reached Rs 1.68 Tn, driven by an Rs 38 Bn increase in LKR loans. Total liabilities increased by 9.6%, with deposits rising to Rs 1,393.8 Bn, contributing to a CASA ratio of 33.9%.
The post Sampath Bank posts PAT of Rs. 17.8 Bn, YOY increase of 44% appeared first on DailyNews.