Sampath Bank 1Q profits up

Sampath Bank continued its performance well in the first quarter 2009, despite the unfavourable conditions that prevailed in the economy.

Pre Tax Profit of the Bank, amounted to Rs. 698.174 Mn. for the first quarter 2009, as against Rs. 603.744 Mn. for the same period in the previous year. This amounted to a pre-tax profit growth of Rs. 94.4 Mn. or 15.6 percent, as against the negative growth of 24.8 percent recorded in 2008. Post Tax Profit of the Bank for the first quarter 2009 amounted to Rs. 363.79 Mn., as compared to Rs. 302.113 Mn. for 2008, which reflected a significant growth of Rs. 61.677 Mn. or 20.4 percent, as against the negative growth of 21.2 percent in the first quarter 2008.

Pre Tax Profit of the Sampath Group, which consists of the Bank, its six subsidiaries and an overseas Associate Company rose to Rs. 748.95 Mn. in the first quarter 2009, from Rs. 662.438 Mn. in the same period 2008, recording a growth of Rs. 86.512 Mn. or 13.1 percent, as against the negative growth of 26 percent in first quarter of 2008. Post Tax Profit of the Group was Rs. 397.423 Mn. in the first quarter of 2009, as against Rs. 325.393 Mn. in the same period in 2008.

This amounted to a Post Tax Profit growth of Rs. 72.03 Mn. or 22.1 percent for the Group as against the negative growth of 24.2 percent in the first quarter of 2008.

Increase in income, both net interest income and other income contributed primarily to this impressive bottom line growth, which surpassed its moderate asset growth of 0.4 percent, during the first quarter of 2009. This was mainly due to a series of performance improvement initiatives taken by the Bank.

Net interest income, the principal source of income rose from Rs. 1.373 billion in 2008, to Rs. 1.742 billion in the first quarter 2009, recording a growth of Rs. 367.8 Mn. or 26.8 percent. This was partially facilitated by the growth in the bank's fund base during the period from 31.03.08 to 31.03.09.

In addition, the Bank continued to improve its net interest margin, despite the volatile market conditions. Consequently, the net interest margin rose to 5.07 percent during first quarter of 2009 as against 4.15 percent during same period of 2008.