Sampath Bank posts steady results for 1Q, recording PAT of Rs. 3.4 Bn.
Sampath Bank posted a profit before tax (PBT) of Rs 6.2 billion and a profit after tax (PAT) of Rs 3.4 billion for the three months ended March 31, 2024 notwithstanding an exchange loss of Rs 4.3 billion due to the appreciation of the LKR against the USD by Rs 23.70.
These figures signify growth rates of 39.1% and 27.8% respectively, in comparison to the financial results reported in the first quarter of 2023. The Sampath Group also reported PBT and PAT figures of Rs 6.9 billion and Rs 3.8 billion respectively, reflecting growth rates of 38.0% and 26.0%.
During the period, Net Interest Income (NII) reached Rs 20.5 billion, marking a growth of 12.7% compared to Rs 18.1 billion recorded in the corresponding period of the previous year. In 1Q 2024, the Bank experienced a significant 75.3% decrease in its total non-fund-based income, declining from Rs 2.8 billion reported in the corresponding period of last year to Rs 0.7 billion in the current period. The decline was driven by several factors including lower commission rates for import-related transactions, decreased trade volumes, and the appreciation of LKR against the USD.
The Bank reported a net trading loss of Rs 4.5 billion in 1Q 2024 whereas there was a gain of Rs 1.7 billion recognised in the previous period. In the first quarter of 2024, the Bank reported a total impairment charge of Rs 4.4 billion, a 36.8% decrease compared to the charge for the comparative period in the previous year. The Bank witnessed a 61.5% reduction in the impairment charge against loans and advances. The Bank recorded a net impairment charge of Rs 0.9 billion against other financial instruments during 1Q 2024 primarily due to the recognition of an additional charge against Sri Lanka International Sovereign Bonds (SLISB).
In the reporting period, operating expenses saw a 7.0% increase compared to the first quarter of 2023. The increase in personnel costs by 16.4% was primarily driven by the annual salary increments. The Bank’s total effective tax rate rose to 59.7% in the first quarter of 2024 from 57.0% reported in the corresponding period in 2023.
Throughout the review period, Sampath Bank maintained all its capital ratios comfortably above regulatory minimum requirements. The Bank’s asset base grew by 5.8% (annualised growth of 23.3%) from Rs 1.54 trillion as of 31st December 2023 to Rs 1.63 trillion as of 31st March 2024. Total liabilities grew by 6.5% (annualised growth of 26.1%), primarily driven by the expansion of the Bank’s deposit base, which increased from Rs 1,264.5 billion at the end of 2023 to Rs 1,331.2 billion.
The post Sampath Bank posts steady results for 1Q, recording PAT of Rs. 3.4 Bn. appeared first on DailyNews.