Sri Lanka’s Sampath Bank profits down 24-pct; balance sheet contracts

ECONOMYNXT – Profits at Sri Lanka’s Sampath Bank fell 24.6 percent to 2.11 billion rupees in the March 2019 quarter from a year earlier, as bad loans grew amid monetary instability and a new tax hit the bottomline, interim accounts show.

Sampath Bank group reported earnings of 7.39 rupees for the quarter.

Interest income grew 13.9 percent to 27.1 billion rupees and interest expenses grew at a slower 9.1 percent to 18.24 billion rupees helping net interest income grow 21.8 percent to 18.9 billion rupees.

Group performing loans barely grew by 0.7 percent to 680 billion rupees in the quarter. At bank level loans grew 0.4 percent to 651 billion rupees.

Loan loss provisions grew 71 percent to 3.6 billion rupees.

Gross non-performing loans grew to 4.87 percent of risk assets by end March from 3.69 percent in December.

Fee and commission income fell 1.1 percent to 2.34 billion rupees.

Value added tax on financial services fell 5 percent to 933 million rupees, nation building tax fell 5 percent to 125 million rupees while a new debt repayment levy of 512 million rupees was charged.

Customer deposits grew 1.1 percent to 707 billion rupees during the quarter.

Gross asset contracted 0.3 percent to 914.2 billion rupees during the quarter. Net assets grew 0.2 percent to 90.24 billion rupees. At bank level net assets grew 0.3 percent to 84.6 billion rupees.

Total capital adequacy grew to 16.19 percent from 15.73 percent. (Colombo/May15/2019)