ECONOMYNEXT - Despite improving interest margins, profits at Sri Lanka's Sampath Bank Plc fell a marginal 0.8 percent from a year earlier to 2.88 billion rupees in the September 2018 quarter on higher provisioning for bad loans and trading losses, interim results showed.
The bank reported earnings of 10.90 rupees a share in the quarter. In the nine months to end September, earnings were 37.52 rupees a share on a profit of 9.9 billion rupees, up 13.2 percent from a year earlier, accounts filed with Colombo Stock Exchange showed.
The banking stock was trading 1 rupee higher at 233 rupees on Tuesday.
In the quarter, net interest income grew 31.2 percent from a year earlier to 10.22 billion rupees as interest income increased 19.4 percent to 26.3 billion rupees and interest costs grew a slower 12.9 percent to 16 billion rupees.
Net fees and commission incomes grew 23.2 percent to 2.6 billion rupees.
The bank reported a trading loss of 1.2 billion rupees in the quarter, down from a profit of 251 million rupees a year earlier.
Other operating income rose 350 percent to 2.9 billion rupees.
Bad loans provisioning surged 383.5 percent to 3.94 billion rupees due to the adoption of strict accounting standards and non-performing loans rising.
Gross non-performing loans were 4.25 percent of total loans at end September 2018, up from 1.64 percent nine months earlier.
Operating expenses rose 8.5 percent to 5 billion rupees which includes personnel costs of 2.3 billion rupees, down a marginal 0.5 percent a year earlier.
Sampath Bank's loan book expanded 12.2 percent from nine months earlier to 658 billion rupees at end December 2017 while deposits grew 7.3 percent to 680.8 billion rupees.
The banking group's interest margin improved to 4.27 percent in this period, up from 3.91 percent nine months earlier.
The bank's Tier I capital adequacy ratio was 11.67 percent at end September 2018, up from 10.21 percent nine months earlier and above the minimum Basel III regulatory requirement of 8.875 percent.
Total capital adequacy was at 15.61 percent, up from 14.33 percent nine months earlier and above the regulatory minimum of 12.875 percent.
The bank reported earnings of 10.90 rupees a share in the quarter. In the nine months to end September, earnings were 37.52 rupees a share on a profit of 9.9 billion rupees, up 13.2 percent from a year earlier, accounts filed with Colombo Stock Exchange showed.
The banking stock was trading 1 rupee higher at 233 rupees on Tuesday.
In the quarter, net interest income grew 31.2 percent from a year earlier to 10.22 billion rupees as interest income increased 19.4 percent to 26.3 billion rupees and interest costs grew a slower 12.9 percent to 16 billion rupees.
Net fees and commission incomes grew 23.2 percent to 2.6 billion rupees.
The bank reported a trading loss of 1.2 billion rupees in the quarter, down from a profit of 251 million rupees a year earlier.
Other operating income rose 350 percent to 2.9 billion rupees.
Bad loans provisioning surged 383.5 percent to 3.94 billion rupees due to the adoption of strict accounting standards and non-performing loans rising.
Gross non-performing loans were 4.25 percent of total loans at end September 2018, up from 1.64 percent nine months earlier.
Operating expenses rose 8.5 percent to 5 billion rupees which includes personnel costs of 2.3 billion rupees, down a marginal 0.5 percent a year earlier.
Sampath Bank's loan book expanded 12.2 percent from nine months earlier to 658 billion rupees at end December 2017 while deposits grew 7.3 percent to 680.8 billion rupees.
The banking group's interest margin improved to 4.27 percent in this period, up from 3.91 percent nine months earlier.
The bank's Tier I capital adequacy ratio was 11.67 percent at end September 2018, up from 10.21 percent nine months earlier and above the minimum Basel III regulatory requirement of 8.875 percent.
Total capital adequacy was at 15.61 percent, up from 14.33 percent nine months earlier and above the regulatory minimum of 12.875 percent.
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