Sampath Bank maintains its sustainable growth trajectory

Sampath Bank produced strong results for the nine months ended 30th September 2021, despite the challenges caused by prolonged impact of the COVID -19 pandemic. Due to the strategic initiatives and target orienting business plans, the Bank was able to steer through volatile economic conditions created by the pandemic to record a sizable 76.4% improvement in profit after taxes, compared with the last year.

Sri Lanka’s third wave of the COVID-19 pandemic which emerged in mid-2021 has been by far the most challenging for the country, since its commencement in March 2020. As in the past, Sampath Bank supported its customers and employees in dealing with the disruption from these difficulties. The Bank’s digitalization strategy continued to prove its worth by ensuring an easier and safer banking experience for customers and enabling employees to seamlessly switch to the work from home environment during the period of lockdown. Further expediting its digitalization strategy in response to the pandemic, the Bank introduced touchless Cash withdrawals at ATMs for the first time in Sri Lanka and possibly the first time in the region. The revolutionary technology of the touchless ATM eliminates the need to physically touch the surface of the ATM, which minimizes the risk of virus transmission to the user through contaminated surfaces, thus proving to be the ideal solution for withdrawing cash from ATMs during the current global COVID-19 pandemic.

To further reiterate its commitment to support customers and help ease their financial burdens during the prolonged economic crisis, the Bank actively engaged in identifying customers who were eligible for the latest cycle (phase IV) of the moratorium announced by the government. Meanwhile, the Bank continues to deliver its commitments to the agriculture sector in continuing its programme by restoring a further three water tanks under the “Wewata Jeewayak” program.

With the pandemic resurfacing from time to time, it is quite likely to remain an ongoing global challenge for the foreseeable future. In the Sri Lankan context, the pandemic related containment measures that have been in place for the past 18 months also appear to be delaying the anticipated economic recovery in 2021 in turn aggravating the pressure on the economy. However, despite these ongoing challenges, it is hoped that the expeditious vaccine rollout program and other containment measures would pave the way for a revival of the Sri Lankan economy in the coming months.

Financial results declared by Sampath Group for the Nine months ended 30th September 2021:

The Bank reported a profit after tax (PAT) of Rs 8.98 Bn and profit before tax (PBT) of Rs 12.32 Bn for the period under review, denoting significant growth of 76.4% each over the corresponding period in 2020.

Sampath Bank’s NIM for the reporting period was 3.46%, an improvement of 16 bps compared to the figure reported at the end of 2020.

The Bank recorded a sizable 30.9% increase in 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 charged as management overlay to reflect potential credit losses due to the COVID -19 related uncertainty.