Profits drop, impairment costs rise at Sampath Bank

Sampath Bank, amidst a drop in profits owing to the country’s economic downturn, has increased its total impairment charge to Rs. 48.8 billion for the 9-months to 30^th September 2022, a 396 per cent increase from the Rs. 9.8 billion charge reported in the previous year.

The potential impact of rising inflation, higher interest charges and increase in taxes on the retail segment were some of the other factors that were considered in recognising impairment provisions, the bank said in a statement.

The bank reported a profit-after-tax (PAT) of Rs. 7.2 billion and profit-before-tax (PBT) of Rs.9.3 billion for 9-month period reflecting a decline of 19.8 per cent and 24.4 per cent respectively, from the figures reported for the corresponding period in 2021 which is a reflection of the current economic turmoil in the country.  Group PAT and PBT was at Rs. 7.7 billion and Rs. 10.2 billion, a drop of 21.6 per cent and 24.3 per cent respectively compared to the corresponding period 2021.

The bank demonstrated its commitment to the national growth agenda by promoting inward remittances and encouraging the inflow of export proceeds to the country while assisting all stakeholders to manage the current economic crisis.

Sampath Bank's total assets exceeded Rs. 1.3 trillion by end of September 2022, an increase of Rs. 113 billion from the 31^st December 2021 position of Rs. 1.2 trillion.

During the 3Q22, the rupee deposit base grew by Rs. 44.4 billion due to deposit mobilisation initiatives promoted by the bank. Nevertheless, growth in the rupee deposit base was restricted to 0.8 per cent compared to year end 2021.