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Sri Lanka's Sampath Bank net down 39-pct as bad loans bite

Aug 09, 2019 11:06 AM GMT+0530 | 1 Comment(s)

ECONOMYNEXT - Profits at Sri Lanka's Sampath Bank Plc fell 39 percent to 2.06 billion rupees in the June 2019 quarter from a year earlier, as bad loans spiked amid weak credit growth, interim accounts showed.

The group reported earnings of 6.84 rupees per share.

Interest income grew 5.6 percent in the June 2019 quarter to 27.1 billion rupees, interest expenses grew 7.7 percent 16.8 billion rupees and net interest income grew at a slower 2.2 percent.

From December 2018 to June 2019 customer loans grew 1.7 percent. The bank instead had bought bonds, with the portfolio growing 32 percent to 160 billion rupees.

Loan loss provisions spiked 68 percent to 4.0 billion rupees in the June 2019 quarter from a year earlier.

Sri Lanka was hit by monetary instability in 2018 with the central bank printed money from the end of the first quarter just as the credit system recovered from a balance of payments crisis in 2015 and 2016. Instability was worsened by a political crisis in October.

As the monetary system stabilized in the first quarter with capital flight ending, suicide bombers struck on Easter Sunday.

Gross non-performing loan ratio grew 5.66 percent in June from 3.69 percent in December.

Value added tax fell 19 percent to 875 million rupees, nation building tax fell 10 percent to 117 billion rupees while a new debt repayment levy of 480 million rupees was charged.

Income tax fell 32 percent to 1.0 billion rupees as profits fell.

Gross assets grew 1.5 percent to 961 billion rupees. Net assets grew 15.9 billion rupees to 104.9 billion rupees.

Tier 1 capital was 14 percent by June up from 12 percent in December with a capital boost. Total capital was 18.1 percent up from 15.73 percent. (Colombo/Aug09/2019)
(Colombo/Aug09/2019)






 


 

1 Comments

  1. sacre blieu August 09, 01:47 AM

    With crash of Blue Mountain Property company and the investors duped to the tune of Rs. 2 Bn., still there is no comment from the government. Handing over land to foreign or land speculators under the pretext of development should be halted for the moment until a serious study made of the direction of all land that has been handed on concessionary basis pr even long term leases. Now the latest racket would be to ask for land under pretext for tourism development and manipulate the market for land to artificial levels leading to another disaster for investors.

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