Sampath records 60.9 % ptp growth
Sampath Bank continued with the growth momentum in the first quarter
of 201l, by posting impressive results over the last year.
The bank's pre-tax profit which rose to Rs 1,348.6 million in the
first quarter 2011, reflected an increase of Rs 557.1 million or 70.4
percent over the pre-tax profit of Rs 791.5 million for the first
quarter 2010. The post-tax profit (PTP)of the Bank recorded a growth of
60.9 percent over the same period of last year, rising from Rs 558.6
million in 2010 to Rs 898.8 million in 2011.
Sampath Bank Chairman
I W Senanayake |
Financial results of the Sampath Bank Group, which consists of the
bank and four subsidiary companies, were even better. Pre-Tax Profit of
Rs 1,460.8 million of the Group for the first quarter 2011 was a growth
of Rs 608.3 million or 71.3 percent, over the previous year's pre-tax
profit of Rs 852.5 million, with Sampath Bank contributing 92 percent of
the profit, as the main entity of the Group. The post-tax profit of the
Group amounted to Rs 992.5 million, recording a growth of Rs 380.0
million or 64.2 percent, over the post-tax profit of Rs 604.5 million
for the last year. Marked improvements in the performance of all four
subsidiary companies during the period under review facilitated
recording this higher profit growth rate at the group level in 2011.
Increased economic activity in the market and the rapid growth of
42.2 percent achieved by the Bank in its lending activities during the
one year period ended March 31, 2011, paved the way for generating a
higher fee-based and commission income, which recorded a significant
growth of Rs 216.1 million or 45.6 percent in the first quarter 2011
over the same period in 2010.
Nevertheless, the exchange income recorded a negative growth (1.3
percent) in 2011, largely due to the revaluation loss of Rs 36.9
million, incurred in 2011 on the FCBU's retained profits, as against the
revaluation loss of Rs 26.0 million incurred in 2010. This was solely
due to the appreciation of Sri Lankan Rupee against the US Dollar, from
Rs 113.95 as at March 31, 2010 to Rs 110.40 as at March 31, 2011.
The bank was also very successful in managing the net charge on loan
losses in 2011. As a result of the bank's improving credit quality (as
indicated by the reducing NPL volumes and NPL Ratios, it was possible to
reduce the provisions made on specific loan losses to Rs 153.2 million.
in 2011, (even with additional provisions totaling to Rs 100.0 million
included therein), as against Rs 702.6 million made in 2010, which too
was inclusive of additional provisions totaling to Rs 517.4 million.
These additional specific loan loss provisions were made in line with
the bank's policy of making such provisions against identified NPLs,
ignoring the collateral held, aimed at improving the Provision Cover of
the bank. As the bank achieved a Provision Coverage Ratio of 88.9
percent as at December 31, 2010, the need for such additional provisions
was naturally low in 2011. |