Business
Sampath Bank successfully navigates challenging economic environment
Backed by its solid capital base and prudent risk fundamentals, Sampath Bank continues to prove that it is well equipped to navigate the challenging economic environment. Having sufficient capital buffers to absorb significant losses arising by reason of the prevailing stressful economic conditions, the Bank’s well-diversified investment portfolio coupled with its increased vigilance and proactive risk management measures have enabled Sampath Bank to remain resilient and prioritize stakeholder interests above all other interests in the context of negative economic headwinds.
Notwithstanding the extremely challenging economic conditions which prevailed, Sampath Bank registered a profit before tax (PBT) of Rs 6.5 Bn and a profit after tax (PAT) of Rs 4.7 Bn for the three months ended 31st March 2022, indicating marginal growth of 5.3% and 2.9% respectively from the figures reported in Q1 2021 despite having taken in a substantial impairment provision on loans and investments.Key highlights of financial results declared by Sampath Bank and the Group for the Q1 of 2022:
Strong NIM on the back of rising AWPLR.
Solid 248% growth in exchange income stemming from the sharp depreciation of the Sri Lankan rupee against the USD by 47%.Sizable 74.6% increase in net fee and commission income during the period, driven by cards and trade-related operations. Higher impairment provision on loans and investments to capture possible economic uncertainties.
Marginal drop in Group PAT (4.9%) while PBT recorded a slight growth of 1.6%. The Group’s PBT and PAT for Q1 2022 was Rs 6.8 Bn and Rs 4.9 Bn respectively.
Fund based income Sampath Bank recorded a total interest income of Rs 24.9 Bn in Q1 2022 compared to Rs 20.7 Bn for the corresponding period in the previous year, reflecting a 20% growth year-on-year. The increase is attributed to the higher interest income from loans and investments resulting from the upward trend in interest rates in Q1 2022 compared to the corresponding period in the previous year. AWPLR increased by 396 bps from 5.75% reported on 31st March 2021 to 9.71% reported at the end of the reporting period. Meanwhile, one year treasury bill rate increased by 717 bps from 5.11% reported at the end of the corresponding period.
Despite the interest rates hikes observed in recent months, Sampath Bank was able to benefit from lower cost of funds thanks to the higher concentration of CASA in its deposit portfolio. As a result, the Bank recorded a marginal drop of 1.6% in interest expenses during Q1 2022 compared to the first quarter of 2021. The Bank’s interest expenses for the first three months of 2022 was Rs 11.3 Bn compared to Rs 11.5 Bn reported for the same period in the previous year. Net interest income increased by 47% in the first quarter of 2022 as a result of the aforementioned factors. Net interest Margin also reported at 4.54%, a healthy growth of 93 bps compared to the figures reported at the end of 2021.
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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