Sampath Bank geared to provide uninterrupted services | Sunday Observer

Sampath Bank geared to provide uninterrupted services

Sampath Bank will adopt a broad-based approach that includes sound strategic planning coupled with effective management decisions to overcome the prevailing challenges.

The management team of the Bank will remain vigilant in managing assets and liabilities and meeting all contractual obligations of the Bank while ensuring delivery of all concessions to customers and other stakeholders. All ongoing projects and recent proposals will be re-evaluated to redirect expenditure only to essential core business requirements.

The Bank will cautiously explore new business opportunities that may present itself from time to time. In this regard the Bank will seek to upgrade the skills of employees and invest in technology where necessary in order to leverage on such opportunities successfully.

It is expected that Sampath Bank’s solid fundamentals including a strong capital base, expertise in IT and the capacity of Team Sampath will help strengthen resilience and support the Bank to perform consistently in the medium to long-run despite the current economic distress.

The challenges brought by the pandemic and the recession brought on by the terrorist attack in April 2019 has led the period under review to be pressurised by some unique challenges that were not seen in Q1 2019. Therefore, it is important to note that comparing the results of Q1 2020 with the corresponding period in 2019 may not be realistic.

Operating profit before all taxes, which is the real return generated by using the assets and liabilities of the Bank, declined by 10.8%.

 This decline was due to the reasons mentioned above. Sampath Bank recorded a Profit before tax (PBT) of Rs. 3 bn for the quarter ending March 31, 2020.

The Bank reported Profit after tax (PAT) of Rs. 2.5 bn for the three months ended March 31, 2020, reflecting a growth of 15.7% over the corresponding period in 2019. PAT growth was attributed to two factors; (1) the higher exchange income due to depreciation of the Sri Lankan rupee against the US dollar by Rs.7.90 during the quarter and (2) tax concessions received owing to the abolition of Debt Repayment Levy and NBT on financial services.

Sampath Bank’s total asset base grew by 2.2% (annualised 8.7%) during the period under review to reach Rs. 983 bn as at March 31, 2020. In comparison, the total asset position as at December 31, 2019 stood at Rs. 962 bn. Gross loans and advances grew by 3.4% (annualised 13.9%) to reach Rs. 744 bn as at March 31, 2020, recording a growth of Rs. 24.8 bn. The total deposit base increased by Rs. 31.1 bn to reach Rs.749 bn as at the reporting date, a growth of 4.3% (annualised 17.4%). Meanwhile, the CASA ratio stood at 35.6% at the end of the reporting period.