Sampath Group total assets cross Rs. 2 t in 1H

Chairman Harsha Amarasekera (left) and Managing Director-Designate Sanjaya Gunawardana 

• Group and Bank level PAT grows 32% in 1H
• Bank reports Rs. 2.4 b exchange gain
• Bank’s gross loan portfolio surpasses Rs. 1 t 
• Deposit base expands Rs. 144.3 b in 1H to Rs. 1.4 t

The Sampath Group reported a Profit Before Tax (PBT) of Rs. 26 billion and a Profit After Tax (PAT) of Rs. 15.6 billion, both increasing by 32% from a year ago, while total assets crossed the Rs. 2 trillion mark for the first time in its history.

At the bank level, Sampath Bank recorded a PBT of Rs. 24.4 billion and a PAT of Rs. 14.7 billion for the first half of 2025, also marking a YoY (YoY) growth of 32% across both metrics compared to the same period in 2024, the bank announced yesterday. 

During the six-month period ended 30 June 2025, Sampath Bank reported total interest income of Rs. 89.4 billion, a 6% YoY decline primarily driven by the downward trend in the Average Weighted Prime Lending Rate (AWPLR) and reduced yields from Government securities.

The bank’s interest expenses recorded a corresponding decline of 6% to Rs. 50.8 billion for the period. These resulted in Net Interest Income (NII) declining by 6% to Rs. 38.6 billion and the Net Interest Margin (NIM) declining by 66 basis points to 4.24%. 

The bank reported a total non-fund-based income of Rs. 15.9 billion, marking a substantial YoY growth of 122%. 

Net fee and commission income increased by 12% against 1H 2024, driven by higher contributions across multiple channels, including credit, card, trade, operations, and electronic banking services. 

The bank recorded a total exchange gain of Rs. 2.4 billion during 1H 2025, reflecting a significant improvement compared to the exchange loss of Rs. 2.7 billion in the first half of the previous year. This gain was primarily attributable to the depreciation of the Rupee against the US Dollar by Rs. 6.58. 

The bank reported a total impairment charge of Rs. 1.4 billion for the period under review, a 78% decline compared to the previous period. This included a charge of Rs. 1.4 billion for loans and advances (1H 2024: Rs 3.7 billion), a charge of Rs. 0.6 billion for other financial assets (1H 2024: Rs. 1 billion), and a reversal of Rs. 0.6 billion for credit-related commitments and contingencies (1H 2024: charge of Rs. 1.5 billion).

The bank reported a 62% YoY decline in impairment charges on loans and advances during the 1H 2025, even with a substantial increase in its loan portfolio. This decline in impairment was due to the improvement of credit quality across its customer base, fuelled by stronger macro-economic fundamentals of the economy. 

The bank said it conducted a comprehensive review of its ISL customers, allocating prudent provisions in its Financial Statements tailored to each customer’s unique credit risk profile.

Reinforcing its proactive provisioning strategy, the bank continued its prudent provisioning for collective impairment, ensuring that resilient buffers are maintained to absorb any potential future credit risks. The fundamental impairment models used for collective provisioning remained unchanged from 2024. An impairment charge of Rs. 0.6 billion was recognised against other financial instruments during the reporting period, primarily due to newly acquired investments.

During the reporting period, the bank’s operating expenses increased by 20% compared to 1H 2024. This increase was primarily driven by higher personnel costs due to annual salary revisions, along with a rise in other operating expenses. As the increase in expenses outpaced the improvement in operating income, the bank’s cost-to-income ratio (CIR) deteriorated by 240 basis points, rising to 39.9% in 1H 2025, from 37.5% in the same period of the previous year.

Driven by the growth in taxable income, the bank’s total tax charge for the period increased by 29%, rising from Rs. 12.9 billion in 1H 2024 to Rs. 16.7 billion in 1H 2025.

As of 30 June 2025, the bank’s Return on Average Shareholders’ Equity (after tax) stood at 17.94%, while its Return on Average Assets (before tax) was 2.67%. These figures compare to 17.74% and 2.84%, respectively, reported at the end of 2024.

During the period under review, Sampath Bank maintained capital ratios well above the minimum regulatory thresholds, underscoring its continued financial resilience. As of 30 June 2025, the bank’s Common Equity Tier 1 (CET 1), Tier 1, and Total Capital ratios stood at 15.64%, 15.64%, and 19.16%, respectively, compared to 16.75%, 16.75%, and 19.38% reported at the end of 2024.

Following Sampath Bank’s designation as a Domestic Systemically Important Bank (D-SIB), effective 17 April 2025, the minimum capital requirements were raised by 1% across all tiers. The bank comfortably met these enhanced requirements as of 30 June 2025.

Liquidity levels remained robust and well above regulatory benchmarks. The All-Currency Liquidity Coverage Ratio (LCR) was recorded at 312.1%, and the Net Stable Funding Ratio (NSFR) stood at 198.6%, compared to 307.4% and 198.7%, respectively, as at year-end 2024.

Sampath Bank’s total assets grew by 8.4% during 1H 2025, reflecting an annualised growth rate of 17%. Total assets reached Rs. 1.93 trillion as of 30 June 2025, up from Rs. 1.78 trillion reported at year-end 2024. This growth was primarily driven by the expansion of the bank’s loan portfolio and increased investments.

As of 30 June 2025, Sampath Bank’s gross loan portfolio surpassed Rs. 1 trillion for the first time in its history. The portfolio grew by Rs. 68 billion, increasing from Rs. 964.6 billion at the end of 2024 to Rs. 1,032.9 billion, primarily driven by growth in Rupee-denominated loans.

On the investment front, the bank expanded its holdings of Rupee-denominated Treasury Bonds by Rs. 30 billion. Foreign currency asset exposure was also strengthened, with investments in US Treasury Bills and Sri Lanka International Sovereign Bonds (SLISBs) increasing by Rs. 28 billion and Rs. 10 billion, respectively. Furthermore, placements with other banks rose by Rs. 22 billion, collectively supporting the continued growth of the bank’s asset base.

Notably, Sampath Group’s total assets exceeded the Rs. 2 trillion milestone for the first time in its history.

As of 30 June 2025, Sampath Bank’s total liabilities increased to Rs. 1.76 trillion, reflecting a 9.3% rise since year-end 2024 and an annualised growth rate of 18.8%. This growth was primarily driven by a significant expansion in the deposit base, which rose by Rs. 144.3 billion from Rs. 1,469.2 billion at the end of 2024 to Rs. 1,613.6 billion as of the reporting date. The increase was largely attributed to Rupee-denominated deposits, which grew by Rs. 114.2 billion, while foreign currency deposits contributed an additional Rs. 30.2 billion.

The bank also reported an improvement in its low-cost deposit mix, with the Current and Savings Account (CASA) base expanding by Rs. 68.3 billion during 1H 2025. As a result, the CASA ratio increased to 35.2%, compared to 34% a year ago.

Sampath Bank said it continues to support Sri Lanka’s economic recovery by helping customers overcome financial challenges through its dedicated Business Revival Unit. This program provides tailored financial solutions to businesses in distress, enabling them to rebuild and grow. Through this initiative, the bank has helped improve customer creditworthiness and contributed to overall financial stability and resilience in the economy.

The bank also rolled out a comprehensive suite of sustainability initiatives launched in conjunction with World Environment Day 2025. Key highlights included the commencement of a five-year project aimed at enhancing the conservation and sustainable use of the coral reefs and other coastal ecosystems in the Erumaitivu-Kakkativu seascape in the Kilinochchi district in collaboration with the International Union for Conservation of Nature (IUCN) Sri Lanka, the launch of the “Madhu Sampatha” floating market, aimed at reducing plastic waste and empowering local artisans, and a mangrove regeneration program in Karamba, Puttalam, to safeguard blue carbon ecosystems.

The bank also continued its longstanding “Wewata Jeewayak” irrigation revitalisation initiative and, in Q2 2025, introduced a women startup program to foster inclusive economic growth.

Environmental, Social and Governance (ESG)-linked credit screening processes were further enhanced to align with global best practices, strengthening both governance and sustainable value creation.

Reinforcing its commitment to climate transparency and responsible reporting, Sampath Bank is progressively aligning its ESG disclosures with internationally recognised frameworks, including GRI, SLFRS S1 & S2, SASB, and the UN Global Compact. The bank also became a signatory to the Partnership for Carbon Accounting Financials (PCAF). These efforts collectively solidified Sampath Bank’s position as a national leader in ESG strategy, culminating in its recognition as the “Best Bank for ESG in Sri Lanka” at Euromoney Awards 2025.