Financial Times

Sampath on a high with 26.9% profit growth

Despite stock market speculation that Sampath Bank is gearing to go for a rights issue soon, on the back of Rs 1.53 billion profit for 2008, it will not do so, a senior Sampath official said.

“We do not find it necessary to go for a rights issue now because this year we can add about Rs 1 billion from these profits which is a 26.9% growth over 2007’s Rs 1.2 billion, to our capital after paying shareholders their dividends,” Harris Premaratne, Sampath CEO told The Sunday Times FT.

He said this time the dividends will be at 40%, which is the highest so far for Sampath and will be paid after the AGM to be held at the end of the month.

“Last year Sampath paid 30%,” he added. At the Sampath Bank Extra-ordinary General Meeting (EGM) held last October, some 53.75 % proxies were collected against the proposed rights issue while the majority of this was not in favour of the rights issue which was amounting to 17.2 million shares at a ratio of one for four at Rs.100 each.

The rights was announced by the bank in a bid to expand its capital base (TIER I) and finance expansion plans.

The Sampath Group’s pre-tax profit, which consists of the bank, its six subsidiaries and an overseas associate company, rose to Rs. 2.787 billion in 2008, from Rs. 2.384 billion in 2007 recording a growth of Rs. 403 million or 16.9%, as against the negative growth of 0.5% in 2007. Post-tax profit of the Group also crossed the Rs. 1.5 billion mark and reached Rs. 1.525 billion in 2008, as against the Rs. 1.201 billion recorded in 2007. This amounted to a post-tax profit growth of Rs. 324 million or 26.9% for the Group as against the growth of 6% in 2007.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
> Ceylinco assets sales restrained by court
> Tax dept. to probe Golden Key, depositors
> Hedging: Banks want all
> Tatas most trustworthy -- poll
> Central Bank to call for Seylan bids
> IMF loan for crisis-hit countries
> Plan to reduce city traffic congestion
> Credit crunch hurts all
> A sector so private?
> Chillies 2009 unveils “You Can’t Kill It” theme
> Surveillance of financial conglomerates
> M&S celebrates workers schemes for disabled
> Kelsey launches competitive housing project
> Top expert to speak at PIM discussion
> Global credit crunch continues to hurt Lanka’s tea sector in 2009, says industry report
> Architects, business leaders urged to make development sustainable
> Ceylinco Shriram Securities says maintains high standards
> Virtusa supports 50 rural schools
> Taking Mihin to Courts? Will face same plight like hedging case
> On Seylan Merchant Bank and financial crisis
> ‘CID to grill Kotelawala’
> On CCC Code of Ethics
> Sampath on a high with 26.9% profit growth
> Dialog offers data roaming services
> New payment plan of Golden Key deposits presented to Courts
> Janashakthi’s weak share performance due to LMS –JKH saga
> Commercial Bank resilient in 2008
> Global credit crisis haunts Colombo bourse
> Sri Lanka Tourism unveils 3-year plan


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution