Sept 21, 2011 (LBO) – RAM Ratings Lanka has confirmed Sampath Bank’s long- and short-term financial institution ratings at AA and P1 with the long-term rating carrying a stable outlook. We also derive comfort from the Bank’s healthy internal capital-generation rate of 20.38% as at end-Dec 2010, which stands the best among its similar-rated peers. “The ratings are supported by the bank’s healthy asset quality and capitalisation as well as its good market position,” a statement said.
The rating agency said it deemed the bank’s performance as “adequate” although net interest margin dipped to 5.00 percent during the December 2010 financial year before falling further to 4.15 percent in the first half of 2011, marginally below its similar-rated peers.
The full RAM rating report follows:
RAM Ratings Lanka reaffirms Sampath Bank’s ratings at AA/P1 RAM Ratings Lanka has reaffirmed Sampath Bank PLC’s (Sampath or the Bank) long- and short-term financial institution ratings at AA and P1 respectively; the long-term rating carries a stable outlook. The ratings are supported by the Bank’s healthy asset quality and capitalisation as well as its good market positio