Sampath Group profit tops Rs 1.3 b
Impressive first half results :
Sampath Bank Group, which consists of the Bank and four subsidiary
companies, continued to maintain its growth momentum in the first half
of 2010, by recording all-round impressive results over the
corresponding period in 2009.
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Sampath Bank Chairman
I W Senanayake |
Pre-tax profit of Rs 1,884.781 million of the Group for the first
half of 2010 recorded a growth of Rs 304.5 million or 19.3 percent, over
the previous year’s pre-tax profit of Rs 1,580.260 million, with Sampath
Bank, contributing bulk (94.0 percent) of the profit as the main entity
of the Group.
The Bank’s pre-tax profit which rose to Rs 1,772.165 million, as per
the audited accounts as at 30.06.2010, reflected an increase of Rs 239.2
million or 15.6 percent over the pre-tax profit of Rs 1,532.965 million
for the corresponding period in 2009.
The higher profit growth rate at group level is attributed to
improved performance of the four subsidiary companies. The post -tax
profit of the Group rose to Rs 1,365.647 million, registering a growth
of 516.3 million or 60.8 percent, over the post-tax profit of Rs 849.330
million for the corresponding period last year.
Similarly, Sampath Bank too recorded a post-tax profit growth of 56.9
percent over the corresponding period last year, rising from Rs 829.765
million in 2009 to Rs 1,301.645 million in 2010.
Post-tax profit growth rates of both the Group and Bank,
substantially exceeded the pre-tax profit growth rates, mainly due to
tax free income accrued during the period, which included a capital gain
of Rs 670.48 million, realized through the sale of bonus-shares received
from the Lanka Bangla Finance Ltd, reversal of a loan loss provision of
Rs 331.90 million and mark to market gains totalling to Rs 195.732
million.
Consequently, the Bank’s tax charge for the period under review,
decreased by Rs 232.68 million, despite the increase of 15.6 percent in
pre-tax profits.
Net Interest Income (NII), which is the net return of the Bank’s
entire fund-based operations, made the single largest contribution for
the increased profitability, by rising from Rs 3,619.1 million in 2009
to Rs 4,265.7 million in 2010,
registering an impressive growth of Rs 646.6 million or 17.9 percent.
Other income of the Bank, bulk of which is Commission and Fee-Based
income, too recorded a growth of Rs 124.532 million in 2010, over 2009.
The Specific Provision for Loan Losses of the Bank for the period
under review amounted to Rs 1,386.0 million, as against Rs 368.2 million
for the corresponding period last year.
The resultant increase of Rs.1,017.7 million in specific loan loss
provisions was mainly due to the Bank’s decision to make additional loan
loss provisions as a prudential measure against certain identified NPLs,
over and above the prevailing time-based provisioning requirements,
ignoring the collateral held.
Total deposit base and the total assets of the Bank grew by 10.85
percent and 9.0 percent respectively in the first half of 2010, at a
faster pace than the industry growth rates of 4.30 percent and 6.27
percent respectively.
Deepal in Sampath Bank Board
|
Deepal Sooriyaarachchi |
The Sampath Bank Director Board at its Board Meeting held on August 4
has appointed Deepal Sooriyaarachchi as a Director of the Bank from
August 5. Sooriyaarachchi will be a Non-Executive Independent Director.
This appointment has been approved by the Bank Supervision Director
of the Central Bank of Sri Lanka.
Group performance highlights
Particulars As at As at Growth
30.6.2010 31.12.2009
Total deposits – Rs million 139,689.0 125,974.3 10.9%
Total advances – Rs million 105,757.0 99,682.4 6.1%
Total assets – Rs million 171,939.7 158,002.0 8.8%
Number of branches 149 139 7.2% |
