Business
Sampath Bank delivers healthy financial results amidst challenges
Financial results declared by Sampath Bank and the Group for the year 2021:
Sampath Bank reported profit before tax (PBT) of Rs 16.8 Bn in FY 2021, up by 50.7% against Rs 11.2 Bn recorded in 2020. Profit after tax (PAT) for the year under review also grew by 55.2% to Rs 12.5 Bn from Rs 8.0 Bn recorded in the previous year.
Sampath Bank’s NIM reported a healthy increase of 31 bps over the previous year despite notable pressure on interest income
The Bank recorded a sizable 35.7% increase in net fee and commission income during the period, primarily driven by cards, electronic channels, and trade-related operations.
Despite the improvement reported in NPL and Stage 3 loans, additional impairment provisions were made as allowance for overlay to reflect potential credit losses due to the COVID -19 related uncertainties.
The Sampath Group too posted significant growth for the current financial year, with Group PBT and PAT of Rs 18.8 Bn and Rs 13.9 Bn respectively. All four subsidiaries recorded remarkable performance compared to the previous year.
Fund based income
Interest income of the Bank fell by 3% to Rs 85.9 Bn in the year under review compared to the previous year. The lower interest rate environment which prevailed for most part of the year and the weak credit demand resulting from the pandemic-induced economic downturn, were the main reasons for this contraction. Notably however, the decline in interest income from loans and advances was partially offset by interest income from other financial instruments.
Meanwhile, interest expenses for FY 2021 declined by 19.1% compared to the previous year on the back of a strong improvement in CASA. The Bank recorded 640 bps growth in its overall CASA portfolio, while recording a decline in relatively costly term deposits. This change in the composition of the deposit portfolio coupled with the lower interest rate regime that prevailed for most part of the year contributed towards lowering interest expenses.
Moreover, with the decrease in interest expenses making up for the decline in interest income, NII recorded a growth of Rs 7.8 Bn and reached Rs 41.7 Bn at the end of 2021. Consequently, the Bank’s NIM too reported a healthy increase of 31 bps over the previous year despite notable pressure on interest income.
Non-Fund based income
Net fee and commission income, comprising fees related to loans and advances, credit cards, trade, and electronic channels, increased to Rs 11.5 Bn in 2021 from Rs 8.5 Bn reported in 2020. This significant year-on-year growth was driven by a strong increase in fee-based revenues generated from trade related transactions, the sizable improvement in credit card business volumes and higher volumes of online transactions made through Sampath Bank’s digital products in 2021 compared to last year. Fee and commission income received a further boost following the government decision to gradually ease restrictions on the collection of commissions during the year.
Sampath Bank’s net other operating income also recorded a significant growth of 37.5% in 2021, on the back of the depreciation of the Rupee against the US Dollar. With the Rupee depreciating by 8.2% against the US Dollar during the year, the Bank’s Net gain from trading increased to Rs 399 Mn from Rs 24.8 Mn recorded in the last year. The net gain on the derecognition of financial assets meanwhile decreased to Rs 150.4 Mn from Rs 423.8 Mn recorded in the previous financial year.
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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