(PRESS RELEASE) – Sampath Bank surpassed Rs 2.0 billion mark to achieve post tax profit (PTP) of Rs 2.3 billion for the quarter ended March 31, 2017. This registered an impressive 34.6% growth in comparison to the profit after tax (PAT) of Rs 1.7 billion recorded for 1Q 2016.
Profit before tax (PBT) too grew by 36.4% YoY and reached Rs 3.5 Bn in 1Q 2017. Sampath Group, which comprises of Sampath Bank and four fully owned subsidiary companies has also posted a growth of 33.3% and 29.5% at PBT and PAT levels respectively.
The Bank achieved a substantial growth in all key business pillars in the first quarter of the year 2017.
Net Interest Income (NII), which is the main source of income representing more than 70% of the total operating income of the Bank, recorded an increase of Rs 1.7 Bn (36.1%) during the period under review. Accordingly, the Bank recorded Rs 6.3Bn as NII for 1Q 2017, as against Rs 4.7Bn recorded in the corresponding period in 2016.
This achievement was made possible by the robust growth recorded in the Bank’s fund base, as indicated by 4.4% (annualized 18%) growth in deposits and 6.5% (annualized 26%) growth in advances.
Net fee and commission income, which largely comprises of credit, trade, card and electronic channel related fees increased to Rs 1.9 Bn in the quarter under review, as opposed to Rs 1.5 Bn recorded in the corresponding period in 2016.
Operating expenses of the Bank which stood at Rs 3.4 Bn in 1Q 2016, increased to Rs 4.0 Bn during the period under review, reflecting a YoY increase of 15.9%. This increase was mainly due to increase in personnel expenses triggered by salary increments & other relevant expenses, as well as general price hikes & tax increases etc.
However, the Cost to Income ratio excluding VAT & NBT on financial services has improved to 43.7% in the first quarter of the year from 50.8% reported in the same period in 2016.
Sampath Bank’s total asset base grew by 5.1% (annualized 20%) in 1Q 2017 to reach Rs 692.1 Bn as at 31st March 2017. The total asset position as at 31st December 2016 stood at Rs 658.5 Bn. Gross loans & receivables grew by 6.5% (annualized 26%) during the period and moved up to Rs 498.9 Bn (up by Rs 30.4 Bn) as at 31st March 2017. T
Total deposit base too increased by Rs 22.9 Bn, recording a growth of 4.4% (annualized 18%) during this period and stood at Rs 539.2 Bn as at the reporting date.