Sri Lanka’s Sampath Bank maintains strong capital base, steady liquidity profile amidst challenges.
Daily FT: Amidst widespread economic uncertainty during the year 2022, Sampath Bank said yesterday it maintained a strong capital base and a steady liquidity profile.
Proactive efforts to identify challenges and implement appropriate strategies has allowed the bank to further reinforce its strength and stability.
The bank has also continued to lead by example in demonstrating 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.
CSR activities were also accelerated by undertaking multiple projects under the bank’s flagship ‘Weweta Jeewayak’ programme in order to propel the rural economy.
The bank reported a PAT of Rs. 7.2 billion and PBT of Rs. 9.3 billion for the period ended 30 September 2022, reflecting a decline of 19.8% and 24.4% respectively, from the figures reported for the corresponding period in 2021 which is a reflection of the current economic turmoil in the country. As at 30 September 2022, the Group reported PAT and PBT of Rs. 7.7 billion and Rs. 10.2 billion, a drop of 21.6% and 24.3% respectively compared to the corresponding period 2021.
Key financial highlights declared by Sampath Bank for 2022:
• 276% growth in exchange income stemming from the sharp depreciation of rupee against dollar by 82% or by Rs. 164.75.
• Sizeable 69.5% increase in net fee and commission income during the period, driven by cards and trade-related operations.
• The bank booked Rs. 48.8 billion impairment charge on loans and investments to capture possible economic uncertainties during the year.
The performance of a Sri Lankan private bank amidst challenging economic conditions is indicative of the strength and growth of the country’s banking sector. With Sri Lanka working towards becoming an emerging business destination in the South Asian region, a strong and resilient banking sector is a pre-requisite to woo foreign businesses/investors to the country. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have also helped strengthen the country’s bid towards becoming a business destination in the region. Despite facing challenging economic conditions, Sri Lanka’s economy, like in the past, has shown resilience and is once again on the path to recovery while several key economic sectors continue to post a steady growth. In fact, the economic crisis has also opened up new opportunities in the country with economic activities continuing to expand. Given the growth and business potential of the country, foreign businesses/investors could explore the growing opportunities in Sri Lanka with the support of a strong banking sector.
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