Sampath Bank results seen improving this yearView(s):
Sampath Bank Group which consists of the bank and four subsidiary companies, continued with the growth momentum in the 1st half 2012, posting impressive results in many key areas. Pre-tax profit of the group rose to Rs.4. 2 billion, up 42.8 per cent, over the previous corresponding period with Sampath Bank contributing 97.7 per cent of this profit. Post-tax profit of the group amounted to Rs. 2.8 billion, up 34 per cent over last ear.
The bank’s pre-tax profit rose to Rs. 4.1 billion while post-tax profit (PAT) was Rs.2.7 billion. The lower PAT growth rate at the group level was mainly due to the drop in profits of the stock brokering subsidiary, SC Securities Co arising from the current situation in the Colombo Stock market.
Exchange income, one of the key contributory factors for the high profit growth in the 1st H 2012, rose to Rs.2.3 billion, sharply up by 880.6 per cent from the earlier year. “This was facilitated mainly by the increase in the revaluation gains on the foreign currency reserves held in the Bank’s FCBU, as a result of sharp depreciation of Rupee against the US Dollar in 2012 (from Rs. 113.9 as at 31st Dec 2011 to Rs. 133.90 as at 30th June 2012) and the substantial increase in the Dealing Room’s trading Profits,” the bank statement said.
Operating expenses of the bank rose to Rs. 4.4 billion in the 1st H 2012, up by 19 per cent from last year owing to the incremental cost incurred in connection with the opening of 18 new branches in the second half 2011and the increase of the staff cadre, which too was due to the expansion drive.
“The bank anticipates that the cost increase rate would be somewhat lower in years to come, in view of the moderation expected in the branch expansion program, given the fact that bank’s branch network has now adequately covered most of the potential locations of the country. Apart from this, the effect of the salary increments during the year and inflation in the economy also impacted on the increase in operating expenses over the previous year’s same period,” it said.
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