Notwithstanding the extremely challenging economic conditions which prevailed, Sampath Bank registered a profit before tax (PBT) of Rs 6.5 billion and a profit after tax (PAT) of Rs 4.7 billion for the three months ended 31st March 2022, indicating marginal growth of 5.3% and 2.9% respectively from the figures reported in Q1 2021, despite having taken in a substantial impairment provision on loans and investments.
Sampath Bank recorded a total interest income of Rs 24.9 billion in Q1 2022 compared to Rs 20.7 billion for the corresponding period in the previous year, reflecting a 20% growth year-on-year. AWPLR increased by 396 bps from 5.75% reported on 31 March 2021 to 9.71% reported at the end of the reporting period. Meanwhile, one year Treasury Bill rate increased by 717 bps from 5.11% reported at the end of the corresponding period.
The Bank recorded a marginal drop of 1.6% in interest expenses during Q1 2022 compared to the first quarter of 2021. The Bank’s interest expenses for the first three months of 2022 was Rs 11.3 billion compared to Rs 11.5 billion reported for the same period in the previous year. Net interest income increased by 47% in the first quarter of 2022. Net interest Margin also reported at 4.54%.
Net other operating income also increased significantly by 223% in the first quarter of 2022 compared to the corresponding period in the previous year. During the first three months of 2022, the Bank recorded Rs 8.7 billion as net other operating income compared to Rs 2.7 billion reported in Q1 2021. The Bank recorded a net trading loss of Rs 381 million for the period under review, compared to the Rs 398 million.
The Bank recognised a total impairment charge of Rs 11.8 billion for Q1 2022 compared to Rs 1.2 billion reported in the corresponding period of last year, representing a 897% increase. The impairment charge for Q1 2022 comprises Rs 4.9 billion for loans and advances and Rs 6.7 billion for other financial instruments. Further, an impairment charge of Rs 209 million was recorded against commitments and contingencies.
During Q1 2022, the Bank has recognized Rs 6.3 billion of impairment provision against the foreign currency denominated government instruments.
Operating expenses for Q1 2022 was Rs 6.5 billion up by 17.5% from Rs 5.5 billion in Q1 2021.
The Bank reported a 86.3% increase in total operating income in Q1 2022. The Bank’s cost to income ratio (CIR) declined significantly during the reporting period. CIR for Q1 2022 was 24.5% compared to 38.9% in the first quarter of 2021. However, CIR excluding growth in the exchange income was 31.3% for Q1 2022.
The Return on Average Shareholders’ Equity (after tax) increased to 15.95% as at 31 March 2022 compared to 11.05% reported at the end of the year 2021. Return on Average Assets (before tax) stood at 2.13% as at 31 March 2022 as against the 1.44% reported for 2021.
Sampath Bank maintained all its capital ratios well above the regulatory minimum requirements throughout Q1 2022. As at 31 March 2022, the Bank’s CET 1, Tier 1 and total capital ratios were at 11.44%, 11.44% and 14.20% compared to 13.95%, 13.95% and 17.02% respectively at the end of 2021.
The Sampath Bank’s total assets reached Rs 1.29 trillion at 31 March 2022, up by Rs 93.5 billion (annualised growth 31.6%) from Rs 1.2 trillion as at 31st December 2021.
Total Advances grew by 34.6% (annualised) in the first three months of 2022 to reach Rs 883 billion at the end of the reporting period from the Rs 813 billion reported at the end December 2021. LKR loan book grew by 15.5% (annualised) during the period.
The Bank’s total deposit book grew by Rs 78 billion as at 31 March 2022, from Rs 978 billion reported at the end of December 2021, with an annualised growth of 32%. Total CASA ratio stood at 45.8% at the end of 1Q 2022 compared to 45.7% reported at the end of 2021.
The Shareholders of the Bank at the Annual General Meeting held on 30 March 2022 approved a first and final Cash Dividend of Rs 4.25 per share for the financial year 2021. The Bank had made a provision of Rs 4,864 million for the approved final dividend in its Financial Statements as at 31 March 2022. The Bank paid the respective dividend in April 2022.