Sampath Bank said this week that it had been negatively affected to the tune of Rs. 29 million in its foreign exchange dealings over the nine months to end-September 2011, with its overall foreign exchange earnings being Rs. 492 million. This was compare to the same period the year before when it had earned Rs. 521 million, a factor it said was mainly the result of "volatile market conditions and continuous appreciation of [the Sri Lankan Rupee against the US Dollar. The LKR appreciated against the US Dollar by Rs. 1.75 over the one year period, from Rs. 111.95 as at [September 30, 2010] to Rs. 110.20 as at [September 30, 2011]."
However, it was also stated that, overall, the Sampath Bank Group, under which the bank falls, along with four other subsidiaries, had shown a Group Pre Tax Profit of Rs. 4.6 billion, up 45.4% year-on-year. Also indicated, the bank was responsible for 94% of this profit. Additionally indicated, Group Post Tax Profit for the nine month period was Rs. 3.2 billion, a 51.7% year-on-year increase. Also emerging, the Central Bank had approved a request by Sampath Bank to set up Merchant Bank and Life Insurance subsidaries, and that these areas, along with what it calls an "accelerated" branch expansion programme, which saw it adding 40 branches in 2010 and 28 to date in 2011, with its current total being 199 branches, were to be its focus for the last three months of 2011.
Meanwhile, the bank also noted that one factor contributing to its improved profitability was a "rapid" year-on-year growth (38.3%) in its lending activites, even with declining rates, had generated a higher fee-based and commission income, equal to Rs. 624 million, up 43.2% year-on-year. Others included, higher recoveries of Non Performing Loans (NPLs) which also resulted in close to Rs. 1 billion in savings, Rs. 273 million in 2011 as against Rs. 1,183 billion in 2010, due to lower charges on loan loss provisions.
Further indicated; "Total deposit and the total asset bases of the bank grew by 25.5% and 28.8% respectively during the one year period ended [September 30, 2011]. The growth rates in the two areas in 2011 which amounted to 19.4% and 22.6% respectively too were impressive, going by the industry’s current growth rates. In addition, the growth in customer advances has been phenomenal, with the advances volumes recording a significant growth of 38.3 % during the one year period ended [September 30, 2011,] and 26.3% in the nine month period ended September 2011." (JH) |
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