An Echelon Media Company
Wednesday December 6th, 2023

Sri Lanka’s Sampath Bank profits down amid loan losses

ECONOMYNEXT – Sri Lanka’s Sampath Bank said its net profits for the December 2018 quarter fell 31.8 percent to 2.7 billion rupees from a year earlier amid a steep write-down of bad loans.

The firm’s earnings per share for the quarter were 9.88 rupees, interim financials released at the Colombo Stock Exchange said. Net profits for the 2018 year fell 0.6 percent to 12.6 billion rupees with earnings per share of 46.85 rupees.

Sampath Bank’s share was trading at 238 rupees, Friday.

Interest income for the December 2018 quarter grew 20.7 percent to 28 billion rupees from 2017, while interest expenses grew 11.9 percent to 16.4 billion rupees and gross interest income grew 35.5 percent to 11.6 billion rupees.

Other operating income was up 306.2 percent to 2.8 billion rupees.

The firm’s loan book grew 15.3 percent from a year earlier to 675.9 billion rupees at end-December.

A change in accounting standards saw provisions for bad loans in the quarter grow to 4.2 billion rupees from 370.5 million rupees a year earlier.

"The bank’s loan growth slowed down during the year predominantly due to low credit demand," a statement said.

Over the year to December, group gross loans grew from 595 billion rupees to 697 billion rupees and non-performing loans grew from 9.3 billion rupees to 21 billion rupees.

Bad loans as a portion of total loans grew to 3.69 percent from 1.64 percent a year earlier.

The bank said weak economic conditions resulted in falling credit quality.

The Central Bank printed money in April to cut rates, just as the credit system recovered from a 2015/2016 balance of payments crisis, triggering another run on the rupee.

The Central Bank is targeting inflation (cutting rates saying inflation was low) despite having mutliple convertibility undertakings (a peg), with predictable results.

Deposits grew 10.2 percent from a year earlier to 699.7 billion rupees.

Sampath Bank’s core capital adequacy ratio grew to 12.08 percent from 10.26 percent a year earlier, against a regulatory minimum of 8.875 percent with new funds being raised.

Total capital adequacy ratio grew to 15.73 percent from 14.41 percent against a regulatory minimum of 12.875 percent.

Sampath’s asset base grew 15 percent to 947.8 billion rupees, while net assets per share were up 1.1 percent to 320.58 rupees. (Colombo/Feb15/2019-SB)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka rupee closes stronger at 327.40/90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 327.40/90 to the US dollar on Tuesday, from 328.10/30 the previous day, dealers said.

Bond yields were stable.

A bond maturing on 01.06.2025 closed at 13.60/70 percent from 13.70/14.00 percent.

A bond maturing on 01.08.2026 closed at 13.90/14.00 percent from 13.90/14.10 percent.

A bond maturing on 15.01.2027 closed at 14.00/15 percent from 14.00/14.10 percent.

A bond maturing on 01.07.2028 closed at 14.10/20 percent from 14.20/35 percent.

A bond maturing on 15.05.2030 closed at 14.20/35 percent, from 14.25/45 percent.

A bond maturing on 01.07.2032 closed at 14.10/35 percent, from 14.05/40 percent. (Colombo/Dec5/2023)

Continue Reading

Sri Lanka stocks close down as investor sentiment dips

ECONOMYNEXT – The Colombo Stock Exchange closed down on Tuesday, CSE data showed.

The All Share Price Index was down 0.40 percent, or 43.50 points, at 10,700.09.

The S&P SL20 index was up 0.43 percent, or 13.32 points, at 3,054.41.

Turnover was at 711 million. The capital goods sector contributed 172 million, the food, beverage and tobacco sector contributed 140 million, and banks 113 million of this.

Top positive contributors to the ASPI in the day were John Keells Holdings Plc (up at 193.00), Richard Pieris And Company Plc (up at 19.80), and Nation Lanka Finance Plc, (up at 0.40).

Negative contributors were Commercial Bank of Ceylon Plc (down at 89.70), Sampath Bank Plc (down at 71.00), and Central Finance Company Plc, (down at 106.00). (Colombo/Dec5/2023).

Continue Reading

Sri Lanka plans to reduce number of school grades from 13 to 12

ECONOMYNEXT – The Ministry of Education proposes to reduce the number of school grades from 13 to 12, according to a government information department statement.

“Every child will be given the opportunity to finish school in 17 years through the proposed new education reforms,” education officials were quoted as saying after a discussion on budget allocations.

Under the proposed system, pre-school education will be at the age of 4 years, the primary section between grades 1-5, junior section between grades 6-8, and senior section between grades 9-12.

The General Certificate of Education Ordinary Level Exam (GCE O/L) is proposed to be conducted in grade 10, and the Advanced Level Examination in grade 12.

It has also been decided to reduce the number of mandatory subjects at the GCE O/L Exam from 9 to 7.

Three new subjects, information and communication technology (ICT), technical and professional skills, and religion and values will be made mandatory and included in those 7 subjects. (Colombo/Dec5/2023)

Continue Reading