Despite the drastic economic downturn, Samapth Bank recorded a profit before tax (PBT) of Rs 6.99 billion and a profit after tax (PAT) of Rs 5.09 billion for the nine months ended September 30, 2020.
This is a decline of 33.1% in PBT and 22% in PAT compared to the corresponding period in 2019. The Bank recorded PBT of Rs 1.66 Bn and a PAT of Rs 1.12 Bn during the third quarter from July 1 to September 30, 2020, a drop of 64.2% and 53.8% respectively compared to Q3 of 2019.
PBT and PAT of the Group for the first nine months of the year stood at Rs 7.31 Bn and Rs 5.21 Bn respectively. This is a reduction of 32.6% in PBT and 23% in PAT against the achievements of the corresponding period.
Sampath Bank’s NII declined by 15.5% to Rs 25.99 Bn for the first nine months of the year compared to the same period in 2019. Overall, interest income for the period under review decreased by Rs 9.67 Bn in the first nine months of 2020 to Rs 68.02 Bn, reflecting a decline of 12.4% compared to Rs 77.7 Bn recorded in the corresponding period in 2019. Interest expenses for the nine months ended 30th September 2020 also decreased to Rs 42.02 Bn compared to Rs 46.91 Bn recorded in 2019, denoting a decline of 10.40%.
Consequently, the Net Interest Margin for the period under review decreased to 3.46% compared to 4.46% reported in 2019.
Net fee and commission income, which mainly comprises credit, trade, card and electronic channel related fees, was Rs 5.99 Bn for the period under review, a decline of 18% over the figure reported for the corresponding period in 2019.
Net other operating income recorded a significant YoY increase of 197.5% during the nine months ended September 30 2020 to Rs 3.10 Bn, from Rs 1.04 Bn reported for the corresponding period in 2019.
The total investments in foreign currency denominated government securities as at 30th September 2020 amounted to Rs 87 Bn (31.12.2019: Rs 67 Bn).
Sampath Bank’s total asset base grew by 10.9% (annualized 14.6%) during the period under review and stood at Rs 1.1 Tn as at 30th September 2020.
Sampath’s Common Equity Tier I Capital, Tier I Capital and Total Capital Adequacy ratios as at 30th September 2020 stood at 13.07%, 13.07% and 16.03% respectively, all well above the minimum regulatory requirement. The Bank took swift action to implement the COVID – 19 relief schemes for the benefit of customers. Sampath Bank also actively participated in the government-led refinance scheme and granted approximately Rs 8 Bn worth of working capital loans.
