Sampath Bank reports PAT of Rs 7.2 Bn
The Sampath Bank reported a PAT of Rs 7.2 Bn and PBT of Rs 9.3 Bn for the period ended 30th September 2022, reflecting a decline of 19.8% and 24.4% respectively, from the figures reported for the corresponding period in 2021 which is a reflection of the current economic turmoil in the Country.
As of 30th September 2022, the Group reported PAT and PBT of Rs 7.7 Bn and Rs 10.2 Bn, a drop of 21.6% and 24.3% respectively compared to the corresponding period 2021.
Total interest income increased by 67.7% YoY during the nine months ended 30th September 2022, reaching Rs 106 Bn from the Rs 63 Bn reported in the corresponding period of the previous year. This was primarily due to the hike in interest rates reported in 2022, which saw the AWPLR reaching 25.95% as of 30th September 2022, denoting a 1,953 bps increase from the 30th September 2021 and 1,734 bps increase compared to the year-end 2021.
The one-year T Bill coupon rate also rose to 29.85% as of 30th September 2022, an increase of 2,284 bps against 30th September 2021.
Driven by the rising market interest rates, the Bank’s interest expense increased by 57.3% compared to the corresponding period of the last year to reach Rs 52.8 Bn for the reporting period. Prudent asset and liability management ensured that net interest income increased by 79.4%
During the reporting period, the Bank’s Net Fee and Commission Income (NFCI) increased substantially by 69.5%.
The net other operating income for the nine months ended 30th September 2022 was Rs 18 Bn. This 320% YoY increase was attributed to the Rs 164.75 drop in the value of the LKR against the USD.
The Bank has recognised a total impairment charge of Rs 48.8 Bn for the nine months ended 30th September 2022. This is a 396% increase from the Rs 9.8 Bn charge reported in the previous year.
The Bank provided Rs 9,040 Mn against SLISBs and Rs 935 Mn against SLDBs as of 30th September 2022.
Total operating income for the period increased by Rs 40 Bn. However, the impairment charge too increased by Rs 39 Bn, restricting the growth of net operating income to 3.7%.
Operating expenses during the reporting period amounted to Rs 20.5 Bn, a 23.6% increase from Rs 16.6 Bn recorded during the corresponding period of last year.
Despite the 17.6% drop in profit before VAT, the VAT on Financial Services increased by 9.3% owing to the upward movement in the VAT rate from 15% to 18%.
The Return on Average Shareholders’ Equity (after tax) dropped to 8.08% as of 30th September 2022 compared to 11.05% reported at the end of the year 2021.
As of 30th September 2022, the Bank maintained all its capital ratios well above the regulatory minimum requirements. Bank’s CET 1, Tier 1 and total capital ratios on September 30, were 11.31%, 11.31%, and 13.72% respectively.
Sampath Bank’s total assets exceeded Rs 1.3 Tn by end of September 2022, an increase of Rs 113 Bn (annualised growth of 12.6%) from the 31st December 2021 position of Rs 1.2 Tn. Total advances increased by 22.6% (annualised) over the reporting period, from Rs 813 Bn at the end of December 2021 to Rs 951 Bn as of 30th September 2022. During the 3Q22, the LKR deposit base grew by Rs 44.4 Bn due to deposit mobilisation initiatives promoted by the Bank.