Sampath Bank’s net interest income shows 12% growth in 1H | Daily News

Sampath Bank’s net interest income shows 12% growth in 1H

Sampath Bank reported a net interest income of Rs 19.8 billion(Bn) for 1H 2019 reflecting a growth of 12.2% over the figure reported in 1H 2018, a commendable result given the challenging economic environment throughout the period under review.

Operating profit before impairment charges and taxes for the period, grew by 4.6% over the corresponding period in 2018. However, profit before taxes recorded a decline of 33.7%.

Impairment charges for the period increased owing to higher non-performing loans reported during the period. The Bank recorded a profit before tax (PBT) of Rs 5.8 Bn and a Profit after tax (PAT) of Rs 4.1 Bn. Meanwhile the Sampath Bank Group reported a PBT and PAT of Rs 5.9 Bn and Rs 4.2 Bn respectively.

Net Interest Income (NII), which is the main source of income representing almost 76% of the total operating income of the Bank, recorded an increase of Rs 2.1 Bn (12.2%) during the period under review.

Accordingly, the Bank recorded Rs 19.8 Bn as NII for the 1H 2019, as against Rs 17.7 Bn recorded for the corresponding period in 2018.

The above achievement was made possible due to marginal growth in the Bank’s fund base, timely re-pricing of asset and liability products and other fund management strategies adopted by the Bank.

Net fee and commission income, which largely comprises of fees generated through credit, trade, card and electronic channels, declined marginally to Rs 4.7 Bn in 1H 2019, from the figure reported in 1H 2018.

The Net gain from the trading portfolio recorded a strong growth to reach Rs 2.2 Bn for the period under review. Operating expenses of the Bank which stood at Rs 9.5 Bn during 1H 2018, increased to Rs 10.1 Bn during the period under review, reflecting a YoY increase of 6.7%.

Sampath Bank’s total asset base grew by 1.3% (annualized 2.6%) during the period under review to reach Rs 925.7 Bn as at June 30, 2019. In comparison, the total asset position as at 31st December 2018 stood at Rs 914.2 Bn. Gross loans and advances grew by 2.5% (annualized 5.0%) to reach Rs 686.9 Bn as at 30th June 2019, recording a growth of Rs 16.6 Bn for the period under review.

Total deposit base except deposits held by other banks increased by Rs 5.7 Bn for the same period, to reach Rs 696.1 Bn as at the reporting date, a growth of 0.8% (annualized 1.6%).


 

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