Sampath Bank posts Rs 17.1 Bn PAT in 2023

Sampath Bank demonstrated resilience and a commitment to  prioritizing stakeholder interests in the face of challenging economic  headwinds. Profitability remained in line with expectations as the  bank’s Profit Before Taxes on financial services stood at Rs 38.4 Bn  which is a 89.9% increase over the previous year’s achievement of Rs  20.2 Bn.

However, considering the impact of higher tax expenses, the  Profit After Tax (PAT) demonstrated a reduced improvement of 30.5%,  rising from Rs 13.1 Bn in the previous year to Rs 17.1 Bn for the year  ended December 31, 2023.

The Group remained resilient with a profit after tax of Rs  17.9 Bn for the year under review, reflecting a 27.5% growth over the  previous year. The Net Interest Income (NII) for the year amounted to Rs  72.3 billion, indicating a marginal 1.6% decline year on year,  primarily due to the increase in interest expenses for FY 2023  surpassing the increase in interest income. Interest income increased by  Rs 45.8 billion in the year under review, marking a 29.1% improvement  compared to the previous financial year, while interest expenses surged  by 55.9% year on year reaching Rs 131.2 billion.

Despite this significant disparity, timely re-pricing  strategies, coupled with stringent management of both asset and  liability portfolios amidst the backdrop of the declining AWPLR, helped  contain the impact on the Bank’s NII, ensuring only a marginal drop. The  Net Interest Margin (NIM) for the year was 5.16%, compared to 5.66%  reported in the previous year.

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