Sampath Bank Group posts Rs 4.9 bn PAT for 1Q 2022

Notwithstanding the extremely challenging economic conditions which prevailed, Sampath Bank registered a profit before tax (PBT) of Rs 6.5 bn and a profit after tax (PAT) of Rs 4.7 bn for the three months ended March 31, 2022, indicating marginal growth of 5.3% and 2.9% respectively from the figures reported in Q1 2021 despite having taken in a substantial impairment provision on loans and investments.

Sampath Bank recorded a total interest income of Rs 24.9 bn in Q1 2022 compared to Rs 20.7 bn for the corresponding period in the previous year, reflecting a 20% growth year-on-year. The increase is attributed to the higher interest income from loans and investments resulting from the upward trend in interest rates in Q1 2022 compared to the corresponding period in the previous year.

AWPLR increased by 396 bps from 5.75% reported March 31, 2021 to 9.71% reported at the end of the reporting period. Meanwhile, the one year treasury bill rate increased by 717 bps from 5.11% reported at the end of the corresponding period.

Despite the interest rate hikes observed in recent months, Sampath Bank was able to benefit from lower cost of funds thanks to the higher concentration of CASA in its deposit portfolio.