Sampath Bank surpasses Rs.14 billion mark in Pre-Tax Profit
Sampath Bank achieved Rs.14.2 billion in Profit Before Tax (PBT) within the first 3 quarters of 2018, 20.3% higher than the PBT of Rs.11.8 billion recorded in the corresponding period in the previous year. This is a significant achievement particularly given the challenging macroeconomic conditions that were seen throughout this period. Profit After Tax (PAT) too grew by 13.6% YoY to reach Rs.9.6 billion for the nine months ended 30th September 2018, as against the Rs.8.5 billion reported for the corresponding period in the previous year.
Meanwhile the Sampath Bank Group, which comprises of the Bank and four fully owned subsidiary companies, also posted strong results, with Group PBT and PAT for the nine months ended 30th September 2018 growing by 19.8% and 13.2% respectively over the results reported for the corresponding period in the previous year.
Net Interest Income (NII), the main source of income of the Bank which accounts for more than 71% of the total operating income, recorded an increase of Rs.6.7 billion (32.8%) over the corresponding period in 2017. Accordingly, NII for the first 3 quarters of 2018 amounted to Rs.27.2 billion, as against Rs.20.5 billion recorded for the corresponding period in the previous year.
This achievement was made possible thanks to a steady 13.1% (annualized 17.4%) growth in the Bank’s advance base, being the result of timely re-pricing of asset and liability products and other fund management strategies adopted by the Bank throughout 2018.
Net fee and commission income, which largely comprises of credit, trade, card and electronic channel related fees increased to Rs.7.3 billion during the period under review, as opposed to Rs.5.9 billion recorded during the corresponding period in 2017. The notable YoY growth of 24.0% is largely due to the steady growth in advances, expansion of credit card operations and the success of innovative value additions.
Other operating income too recorded a YoY increase of 124% for the period under review, led mainly by an increase in realized exchange income. Consequently, other operating income and net gain from financial investments for the first 9 months of 2018 stood at Rs.5.4 billion, compared to Rs.2.5 billion reported for the corresponding period.
Notably however, the Bank recorded a net trading loss of Rs.1.4 billion during the 9 months ended 30th September 2018 in contrast to the gain of Rs.291 million recorded in corresponding period (decline of 593%).