Sampath Bank, a licensed commercial bank in Sri Lanka, reported a Profit Before Tax (PBT) of Rs. 35.3 billion and a Profit After Tax (PAT) of Rs. 21.5 billion for the nine-month period ended 30 September 2025, reflecting a consistent year-on-year growth of 18% and 21% respectively.
Furthermore, the Group recorded a PBT of Rs. 38.0 billion and a PAT of Rs. 23.1 billion for the same period, marking growth of 19% and 21% respectively.
The Bank’s total interest income declined by 3% year-on-year for the nine-month period ended 30th September 2025, reaching Rs. 134.0 billion. This decrease was primarily driven by the continued reduction in the Average Weighted Prime Lending Rate (AWPLR) and lower yields from government securities.
Interest expenses saw a corresponding decrease of 2% year-on-year to Rs. 76.8 billion, reflecting the overall downward trend in market interest rates. Consequently, the Bank’s Net Interest Income (NII) contracted by 6% year-on-year to Rs. 57.2 billion. The Net Interest Margin (NIM) narrowed by 81 basis points, from 4.90% as at 31 December 2024, to 4.09% as at 30th September 2025.
The Bank reported a robust 107% year-on-year increase in total non-fund based income, reaching Rs. 23.9 billion for the nine-month period ended 30 September 2025. Net fee and commission income, amounting to Rs. 15.6 billion, saw a robust 20% year-on-year growth, driven by strong performances in key business areas, including advances, cards, trade, operations, and electronic banking services.
The Bank also recorded a total exchange gain of Rs. 3.5 billion during the period, marking a notable turnaround from the exchange loss of Rs. 3.5 billion reported in the same period last year. This improvement was primarily driven by the depreciation of the LKR against the US dollar by Rs. 9.30.
For the nine-month period ended 30 September 2025, the Bank recorded a total impairment charge of Rs. 2.0 billion, representing a significant decrease of 62% compared to the corresponding period in 2024. This comprised an impairment charge of Rs. 2.3 billion on loans and advances (2024: Rs. 3.1 billion), Rs. 0.6 billion on other financial assets (2024: Rs. 1.2 billion), and a reversal of Rs. 0.8 billion on credit-related commitments and contingencies (2024: charge of Rs. 1.1 billion).
Notwithstanding a significant 18.9% expansion in the Bank’s loan portfolio during the period under review, impairment charges on loans and advances declined by 27% year-on-year. This reduction was largely attributable to improved credit quality and stronger repayment capacity across the customer base, supported by favorable macroeconomic conditions and an optimistic business outlook.
Source: The Morning