Banks strategies should boost depositors’ confidence - Sampath
Bank CEO
Private sector banks need to map their strategies to strengthen the
confidence of depositors, said Executive Director/Chief Executive
Officer Sampath Bank Harris Premaratne.
He was speaking at the investor forum and media briefing on Monday to
unveil the company’s financial results for last year.
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Harris Premaratne, Chairman, Sampath Bank I.W. Senanayake,
Executive Director/COO Sampath Bank Aravinda Perera and
Executive Director/Chief Financial Officer, Sampath Bank,
Ranjith Samaranayake at the press conference.
Picture by Sumanachandra Ariyawansa |
He said customers earlier went to state banks for deposits but
private banks were able to instil confidence in customers. However, with
the recent incidents in the local financial industry it is important to
strengthen the confidence of the customers.
Despite the challenging environment Sampath Bank performed well last
year. The Bank is confident of maintaining a reasonable profit growth in
2009 targeted not less than 20 per cent.
The Bank will give top priority this year to manage Non Performing
Loans (NPL). This year we will have a rewards system for our employees
based on their performance to increase productivity. We will adopt a
Return On Equity as a key financial indicator to add more value for our
investors, he said.
Pre Tax Profit of the Sampath Group, which consists of the Bank, its
six subsidiaries and an overseas Associate Company rose to Rs. 2.787 Bn
in 2008, from Rs. 2.384 Bn in 2007 recording a growth of Rs. 403 Mn or
16.9%, as against the negative growth of 0.5% in 2007. Post Tax Profit
of the Group crossed the Rs. 1.5 Bn mark and reached Rs. 1.525 Bn in
2008, compared to Rs. 1.201 Bn in 2007.
This amounted to a Post Tax Profit growth of Rs. 324 Mn or 26.9% for
the Group compared to the 6% growth in 2007. Pre Tax Profit of Sampath
Bank, the main entity of the Sampath Group, crossed the Rs. 2.5 Bn mark
and reached Rs. 2.564 Bn in 2008, as against Rs. 2.218 Bn the previous
year.
This amounted to a pre-tax growth of Rs 346 Mn or 15.6%, as against
the negative growth of 2.2% in 2007.
Post Tax Profit of the Bank for 2008 amounted to Rs. 1.414 Bn,
compared to Rs. 1.052 Bn in 2007, which reflected a significant growth
of Rs 362 Mn or 34.4%, as against the moderate growth of 2.3% in 2007.
Executive Director/ Chief Financial Officer of Sampath Bank Ranjith
Samaranayake said that 2009 will be a challenging year. The end of the
war in the North East will create a positive impact on the economy.
Reducing inflation and interest rates will increase the growth of the
industry.
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