Sri Lanka’s Sampath Bank March 2018 quarter net profit up 41.4-pct
ECONOMYNEXT – Profits at Sri Lanka’s Sampath Bank increased 41.4 percent from a year earlier to 3.3 billion rupees in the March 2018 quarter, on improving interest margins despite increasing bad loan provisioning and taxation, interim accounts showed.
The bank reported earnings of 13.92 a share in the quarter, as net interest income grew 31 percent from a year earlier to 8.3 billion rupees as a result of interest income growing 27.7 percent to 22.5 billion rupees and interest costs rising a slower 26 percent to 14.2 billion rupees, interim accounts filed with the Colombo Stock Exchange showed.
The stock was down 1 rupee to 298 rupees in early trading Friday.
Sampath Bank’s interest margin had improved to 4.10 percent in the quarter, up from 3.91 percent in the previous December 2017 quarter.
Net fee and commission income grew 18.7 percent to 2.3 billion rupees and other operating income increased 64.2 percent to 1.3 billion rupees.
Bad loans provisioning grew 56.7 percent to 1.1 billion rupees.
Operating expenses grew 18.3 percent to 4.7 billion with staff costs amounting to 2.2 billion rupees, up 15.3 percent from a year earlier.
Value added tax and a nation building tax amounted to 1.2 billion rupees, up 31 percent from a year earlier while the bank’s income tax expense rose 36 percent to 1.6 billion rupees.
Sampath Bank’s deposit base grew 3 percent from the previous December 2017 quarter to 643.7 billion rupees in the March 2018 quarter.
The bank’s loan book expanded 7.4 percent to 602.3 billion rupees.
The bank increased investment in subsidiaries by 42 percent to 1.9 billion rupees in the March 2018 quarter.
Subsidiaries of the bank includes listed non-bank lender Siyapatha Finance, SC Securities and Sampath Information Technology Services. (COLOMBO, 04 May, 2018)