Sampath Bank continued to grow in 2020 with the Bank’s asset base expanding by 15.4% to cross the historical Rs. 1 trillion mark to reach Rs. 1.1 tn as at December 31, 2020, from Rs. 962 bn reported as at end December 2019.
Sampath Bank recorded a decline in Profit After Tax (PAT), from Rs. 11.1 bn in 2019 to Rs. 8 bn for 2020. The Bank registered a Profit Before Tax (PBT) of Rs. 11.2 bn compared to Rs. 15.5 bn recorded in 2019, a decline of 27.9%.
The PBT and PAT of the Group for the year ended December 31, 2020 stood at Rs. 11.9 bn and Rs. 8.4 bn respectively, denoting a decline of 27.2% and 27.6% respectively.
With the government-led economic stimulus package and interest caps introduced by the regulator bringing pressure on the Bank’s Net Interest Margins (NIM), in 2020 the Bank registered a NIM of 3.3% which was 116 basis points lower than the year 2019.
Total Interest Income for the year 2020 decreased by Rs. 14.9 bn to Rs. 88.6 bn compared to Rs. 103.5 bn registered in the previous year, reflecting a dip of 14.4%. Total Interest Expenses too reported a decline of 11.6% to Rs. 54.8 bn in 2020 from the Rs. 61.9 bn recorded in 2019.
The combined impact of the lower interest regime and the concessionary interest rates charged during debt moratorium phase I, drove down the Bank’s NII by 18.6% from Rs. 41.6 bn in the previous year to Rs. 33.8 bn in 2020.
Sampath Bank reported net fee and commission income of Rs. 8.5 bn in 2020, a decline of 15.7% against the previous year.
The main contributor to the Bank’s asset growth during this year was not loans and advances, the reason being the sluggish credit demand from the private sector and the selective lending approach adopted by the Bank amid the elevated credit risk prevalent in the market throughout the year. As a result, the net loan book of the Bank, which stood at Rs. 689.4 bn as at December 31, 2019 expanded marginally by 4.5%, to reach Rs. 720.2 bn as at December 31, 2020. The debt and other instruments portfolio recorded a growth of 76% or Rs. 118.8 bn in the year under review.
Sampath Bank’s deposit base expanded by Rs. 168.6 bn or 23.5% during the year, to reach Rs. 886.9 bn as at December 31, 2020.