ECONOMYNEXT – Sri Lanka’s Sampath Bank Plc, has reported profits of 9.6 billion rupees in the December 2025 quarter, up 85 percent from a year ago, amid reversal of provisions made for restructured international sovereign bonds.
The bank reported earnings of 8.20 rupees per share. For the year to December 2024, Sampath bank reported earnings of 24.68 rupees per share, on total profits of 28.7 billion rupees, up 60 percent.
Sampath Bank group interest income fell 11 percent to 46.8 billion rupees and interest expenses fell at a faster 18 percent to 26.3 billion rupees, leaving net interest income flat at 20.4 billion rupees.
Net fee and commission income was 4.82 billion rupees, up 10 percent.
Wage costs were up a steep 48 percent to 5.6 billion rupees.
There was a 16.9 billion rupees net reversal of impairment provisions helped by a restructure of sovereign bonds. There was also a fair value loss of 8.3 billion on the restructure.
Sampath Bank said it had maintained provisions of 52 percent for its Sri Lanka Sovereign Bond portfolio, with a total amortized cost of 112.2 million US dollars.
Sampath took the local restructuring option and got 30 percent in Sri Lanka rupee bonds with a 10 percent haircut and the remaining ones as dollar sovereign bonds representing 63 percent of the original value.
The government will settle the bond in rupees in a default. A past due interest bond was issued with a 11 percent haircut. A 1.9 percent consent fee was given.
Under accounting provisions, 15.8 billion rupees of provisions were reversed and new loss of 8.4 billion rupees was recognized.
Samapath said it had “determined the exit yields in accordance with the guidelines issued by the Institute of Chartered Accountants of Sri Lanka in December 2024.”
The bank had gained 1.1 billion on its Treasury bills and bonds as interest rates fell. (Colombo/Feb19/2025)