Business
Sampath Bank gears up for the future amidst economic challenges
Amidst economic headwinds, Sampath Bank showcased robust financial performance in the nine months ending on September 30, 2023. The bank reported a noteworthy upsurge in profit before tax (PBT) by 136.4%, reaching Rs 22.0 billion, while profit after tax (PAT) soared by 71.5% to Rs 12.3 billion compared to the subdued figures of the corresponding period in 2022.
Financial Performance Overview
The bank witnessed several key highlights:
A 10.0% year-on-year growth in net fee and commission income.
Notable growth in total LKR deposits, surging by Rs 112 billion to reach Rs 996 billion by September 2023.
Significant improvement in Tier 1 and Total Capital ratios, increasing to 14.37% and 17.73% respectively by September 2023.
Fund-Based and Non-Fund-Based Income
Sampath Bank experienced a surge in gross interest income, reaching Rs 153.4 billion, attributed to increased lending rates despite a marginal 0.3% reduction in net interest income due to higher interest expenses.
Non-fund-based income, specifically net fee and commission income, rose by 10.0%, driven by various activities such as card services, trade, and electronic channels.
Impairment Charges and Conservative Provisioning Policy
The bank adhered to a conservative provisioning policy, posting a total impairment charge of Rs 14.4 billion, marking a 70.4% decline from the previous year. Notably, impairment charges for loans and advances decreased by 66.9%, accompanied by an increased provision cover of 13.5% by September 2023.
Operating Expenses and Taxation
Operating expenses rose by 18.8% due to inflation-induced price increases, currency depreciation, and increased taxes. The total effective tax rate escalated to 57.1% owing to increased tax rates and the introduction of the Social Security Contribution Levy (SSCL).
Key Ratios and Capital Adequacy
Return on Average Shareholders’ Equity increased to 12.49%, while Return on Average Assets stood at 2.15% by September 2023. Additionally, capital adequacy ratios improved significantly, exceeding regulatory requirements.
Assets, Liabilities, and Awards
Total assets surged by Rs 161 billion, primarily due to investments in Government Securities. Loans decreased by Rs 55 billion, while deposits grew to Rs 1.21 trillion, showcasing an increase of Rs 110.1 billion.
Sampath Bank’s resilient performance earned it the prestigious title of “Best Bank in Sri Lanka for 2023” at the Euromoney Awards, acknowledging its exceptional performance amid challenging conditions.
In conclusion, Sampath Bank demonstrated resilience and growth in the face of economic challenges, maintaining robust financial performance, conservative provisioning, and commitment to excellence, earning prestigious recognition in the banking sector.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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