For the year ended 31 December 2024, Sampath Bank achieved a profit-before-tax (PBT) of Rs. 46.7 billion and a profit-after-tax (PAT) of Rs. 27.3 billion, marking a year-on-year (y-o-y) growth of 57% and 59.4% respectively.
Similarly, the Sampath Group reported a PBT of Rs. 49.2 billion and a PAT of Rs. 28.7 billion, reflecting growth rates of 57.6% and 60.1% respectively.
The bank reported a total interest income of Rs. 183 billion for the year ended 31 December 2024, reflecting a decline of 10% compared to 2023. This was primarily due to a lower AWPLR and reduced interest rates on government securities compared to the previous year.
Interest expense for the year amounted to Rs. 103 billion, decreasing by 21.4% in response to falling market interest rates. The timely re-pricing of deposits and effective management of CASA levels helped reduce interest expenses, offsetting the decline in interest income.
As a result, net interest income (NII) increased by 10.7%, reaching Rs. 80 billion for the year.
The net interest margin (NIM) however, contracted by 26 basis points, decreasing from 5.16% as of 31 December 2023, to 4.90% at the reporting date. This decline was primarily due to reduced yields across the bank’s interest-earning asset portfolio, driven by the downward trend in market interest rates.
The bank had maintained a 52% provision cover against its investment in Sri Lanka International Sovereign Bonds (SLISB), with a total amortised cost of $ 112.2 million. The restructuring of SLISB was finalised by the Government of Sri Lanka in December 2024.
Under the restructuring options offered, the bank opted for the ‘Local Option’, receiving 30% of its exposure in rupee bonds and accepting a 10% nominal haircut on the face value of the remaining 70% of SLISBs.
Consequently, a new US dollar-denominated bond was issued, representing 63% of the original face value, with the Government retaining the option to settle this bond in rupees in the event of default. Additionally, a ‘Past Due Interest’ (PDI) bond was issued, applying an 11% haircut on past- due interest claims. A 1.9% consent fee on the face value was also received in bonds.