Continuing its robust growth momentum, Sampath Bank achieved Rs 8.5 bn in Profit After Tax (PAT) within the first 3 quarters of 2017.
In comparison to the PAT of Rs 6.7 bn recorded for the comparative period in the previous year, this was an impressive YoY growth of 26.2%. Profit Before Tax (PBT) too grew by 31.9% YoY to reach Rs 11.8 bn for the nine months ended September 30, 2017, as against the Rs 8.9 bn reported for the corresponding period in the previous year. The Sampath Bank Group, which comprises of the Bank and four fully owned subsidiary companies, also posted a growth in PAT and PBT of 26.5% and 32.4% respectively for the nine months ended 30th September 2017.
Net Interest Income (NII), the main source of income of the Bank which accounts for more than 70% of the total operating income, recorded an increase of Rs 4.3bn (26.9%) compared to the corresponding period in 2016. Accordingly, NII for the first 3 quarters of 2017 amounted to Rs 20.5 bn, as against Rs 16.1 bn recorded for the comparative period in the previous year.
The above achievement was made possible by the robust growth recorded in the Bank’s fund base, as indicated by 18.5% (annualized 24.7%) growth in deposits together with 17.2% (annualized 22.9%) growth in advances. The timely re-pricing of asset and liability products and other fund management strategies adopted by the Bank too played a pivotal role in achieving the aforesaid growth in NII. Net fee and commission income, which largely comprises of credit, trade, card and electronic channel related fees increased to Rs 5.9 bn during the period under review, as opposed to Rs 4.7 bn recorded during the corresponding period in 2016. The notable YoY growth of 24.8% is largely the result of strong growth recorded in advances, expansion of credit card operations and the success of innovative value additions, especially electronic channel offerings.
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