Sampath Bank achieves post-tax growth of 41% in 1Q
View(s):Starting the year 2018 in a positive note, Sampath Bank says it has achieved a post-tax profit (PAT) of Rs. 3.3 billion for the quarter ended 31st March 2018, up by 41.4 per cent from 1Q 2017.
“The results stem from higher profit before tax (PBT), which grew by 39.6 per cent YoY to reach Rs. 4.9 billion in 1Q 2018. The Sampath Group, which includes the bank and four fully owned subsidiary companies, also posted a strong performance for the quarter, with PBT and PAT growing by 39.3 per cent and 41.1 per cent respectively compared to 1Q 2017,” the bank said in a media release.
Net Interest Income (NII), which is the main source of income representing more than 70 per cent of the bank’s total operating income, recorded an increase of Rs. 2 billion (31 per cent up) during 1Q 2018 in comparison to 1Q 2017, and accordingly, NII for the quarter was Rs. 8.3billion.
The bank’s deposit base recorded a 3.6 per cent (annualised 14 per cent) growth while net advances increased by 7.4 per cent (annualised 30 per cent).
Net fee and commission income, which largely comprises credit, trade, card and electronic channel related fees increased to Rs. 2.3 billion, a year-on-year growth of 18.7 per cent. Other operating income was up by 64.2 per cent.
The bank’s operating expenses, which amounted to Rs. 3.9 billion in 1Q 2017, increased to Rs 4.7 billion with the rise attributed to higher personnel expenses triggered by salary increments and an increase in other operating expenses driven by business expansion.
Additionally inflation-led general price hikes were the main reasons for this cost escalation, the bank said.
Sampath’s total asset base grew by 6.5 per cent (annualized 26 per cent) in 1Q 2018 to reach Rs. 846 billion while the total asset position as at December 31, 2017 stood at Rs. 795 billion.
Gross loans and receivables from other customers grew by 7.5 per cent during the period to Rs. 612 billion by end March.