Sampath Bank’s Group pretax profit for the first half of the year exceeded Rs 10.3 Bn (28.2% growth) while Sampath Bank recorded a pre-tax profit of Rs 9.9 Bn for the same period.
This registered a YoY growth of 28.1% in comparison to the first half of 2017. Profit after tax of the Bank too grew by 19.9% and reached Rs 6.8 Bn for the first half of 2018. Sampath Group, also posted a post-tax profit growth of 20.2%.
Net Interest Income (NII), which is the main source of income representing almost 71% of the total operating income of the Bank, recorded an increase of Rs 4.5 Bn (34.3%) during the period under review. Accordingly, the Bank recorded Rs 17.6 Bn as NII for the first half of 2018, as against Rs 13.1 Bn recorded for the corresponding period in 2017.
Net fee and commission income, which largely comprises of credit, trade, card and electronic channel related fees increased to Rs 4.7 Bn during the period under review, as opposed to Rs 3.8 Bn recorded during the corresponding period in 2017. This income source too has posted an impressive YoY growth of 24.3% largely due to the healthy growth recorded in the advances portfolio and expansion of credit card operations.
The Bank’s other operating income, net trading income and net gains from financial investments too recorded an increase of 18% during the period under review. Increase in realized exchange income has contributed to the said increase in other operating income. Consequently, other operating income for the first half of 2018 stood at Rs 2.3 Bn, as opposed to Rs 1.8 Bn reported during the corresponding period in 2017.
Operating expenses of the Bank which stood at Rs 7.9 Bn during the first half of 2017, increased to Rs 9.5 Bn during the period under review, reflecting a YoY increase of 20.4%. This increase was mainly due to the increase in personnel expenses triggered by annual salary increments. Other overhead expenses too increased due to general price hikes.
Impairment charges amounting to Rs 2.8 Bn recorded for the first half of 2018 witnessed an increase of Rs 1.4 Bn over the comparative period’s charge of Rs 1.4 Bn. The number of customers qualified for individual impairment increased resulting in an increase in individual impairment of Rs 1 Bn.
Sampath Bank’s total asset base grew by 8.9% (annualized 17.8%) during the period under review to reach Rs 865.6 Bn as at 30th June 2018. In comparison, the total asset position as at 31st December 2017 stood at Rs 795.1 Bn.
ROE (after tax) declined from 23.35% as at 31st December 2017 to 19.68% as at the end of the period under review due to increase in average equity base as a result of the Rights Issues in April 2018 (Rs 12.5 Bn) and November 2017 (Rs 7.6 Bn).
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