SAMPATH BANK PLC
Interim Financial Statements
for the period ended 30th June 2020
(In terms of rule 7.4 of the Colombo Stock Exchange)
Sampath Bank, backed by a One Trillion Rupee Balance Sheet, works hand in hand with all stakeholders to create a better future for the Nation.
The global economy took a steep downward trend with the outbreak of COVID - 19 pandemic epicentre shifting from China and East Asia to the United States and Europe. Most countries declared prolonged lockdowns and movement restrictions with a view to controlling the disease, which severely hampered worldwide economic activity and global trade from March 2020.
Domestically, the COVID - 19 outbreak weakened the Country outlook substantially as it brought further stress to an already challenged macroeconomic situation. Responding to these economic challenges, the Central Bank of Sri Lanka took steps to cut policy rates twice during the second quarter, resulting in the Standard Deposit Facility Rates and the Standard Lending Facility Rates dropping to 5.5% and 6.5%, respectively by 30th June 2020. At the same time, the Statutory Reserve Requirement (SRR) was reduced in two stages from 5% to 2% during the 1H 2020, in a bid to improve liquidity levels in the market.
While the economy and the banking sector as a whole continued to face unprecedented challenges due to the COVID-19 pandemic, Sampath Bank is pleased to announce that its total assets crossed the Rs One Trillion (1 Tn) mark for the first time in its history. Reaching this milestone in the span of just 33 years, probably makes Sampath Bank the youngest business organisation in Sri Lanka to achieve this significant milestone.
During this difficult period the Bank redoubled efforts to serve its valued customers, who were severely impacted by the prolonged lockdown, to overcome the challenges and hardships faced by them. By leveraging its IT supremacy and substantial investments made in technology platforms and the widespread branch network, Sampath Bank was able to operate seamlessly during this time of disruption. The Bank was quick to implement all the relief measures introduced by the government, with approximately 50% of the Bank's loan portfolio being granted relief under the government announced moratorium scheme. Further, the Bank actively engaged in providing working capital loans under "Saubhagya" scheme introduced by the government and took proactive steps to provide necessary assistance to customers across all segments who required special attention, including re-scheduling of loan repayments of those customers who were severely impacted.
Given the unprecedented challenges witnessed in the first half of 2020, it is important to note that comparing the Financial result of the first half of 2020 with 2019 may not be realistic.
Financial Result of Sampath Bank for the First Half of 2020
Sampath Bank registered a profit before tax (PBT) of Rs 5.32 Bn and a profit after tax (PAT) of Rs 3.97 Bn for the six months ended 30th June 2020. Despite the unique challenges that prevailed since mid- March 2020, the Bank was able to limit the decline in PBT and PAT to 8% and 3.2% respectively compared to the corresponding period in 2019. The Bank made solid progress towards its targets set for 2020, which together with diversified product portfolio embedded with technological advancements and strong cost control measures helped the Bank to control the impact on profits. PBT and PAT of the Group also declined by 7.7% and 4.2% respectively for the six months ended 30th June 2020 and stood at Rs 5.48 Bn and Rs 3.99 Bn respectively.
Meanwhile, the Bank remained well-capitalized with a Tier 1 capital ratio of 13.30% and a Total capital ratio of 16.77%.
Fund Based Income (FBI)
The Bank's Net Interest Income (NII) for the quarter ended 30th June 2020 was significantly affected by two factors - reduction in policy rates in order to provide relief to the economy and the moratorium granted to customers. Consequently, the day one loss on account of COVID - 19 moratorium was recorded against the interest income as per the modification method given in the Sri Lanka Accounting Standard - 9 (SLFRS - 9). As the entire day one loss that arose due to COVID - 19 moratorium has been recorded during the period under review, Sampath Bank does not have to incur any additional impact on interest income during the 2H of 2020.
Due to the reasons mentioned above, the Bank's Net Interest Income declined by 11.9% and stood at Rs
17.4 Bn for the 1st half of 2020 compared to the same period in 2019. While closely monitoring the factors affecting this reporting line, the Bank's ALCO continued to take necessary action to manage the net interest income to the best possible level. Overall, interest income for the period decreased by Rs 5.0 Bn to Rs 46.2 Bn compared to Rs 51.2 Bn recorded in the corresponding period in 2019, denoting a decline of 9.8%. The total interest expenses stood at Rs 28.8 Bn in 1H 2020 compared to Rs 31.4 Bn recorded in the corresponding period of 2019, a reduction of 8.5%.
Consequently, the Net Interest Margin for the 1H 2020 decreased to 3.57% compared to 4.46% reported in 2019.
Non-Fund Based Income (NFBI)
Net fee and commission income, which comprise of credit, trade, card, and electronic channel related fees, was limited to Rs 3.8 Bn during the period under review, a decline of 18.9% over the figure reported in 1H 2019. The decline was mainly due to the decrease in credit-related fee and commission income consequent to the restrictions imposed to assist customers during this difficult period. Meanwhile, the fee and commission income from electronic channels showed strong growth owing to the high usage of Sampath Vishwa and other popular electronic products.
Other operating income (net) recorded a significant YoY increase of 509% in the 1st half of 2020, led mainly by an increase in realized exchange income due to the 2.7% depreciation of the Sri Lankan Rupee against the US Dollar. Consequently, other operating income (net) for the first six months of 2020 increased to Rs 2.6 Bn, from the loss of Rs 642 Mn reported for the corresponding period in 2019. On the other hand, the Bank incurred a net trading loss of Rs 107 Mn as a result of mark to the market losses on forward exchange contracts owing to the aforementioned currency depreciation. Therefore, the Bank's net exchange income from foreign exchange transactions amounted to Rs 1.8 Bn for the period under review.
Operating Expenses
Operating expenses, which stood at Rs 10.1 Bn during 1H 2019, decreased to Rs 9.6 Bn during the period under review, reflecting a YoY decline of 5.2%. The cost optimization strategies implemented by the Bank to face the situation was instrumental for this achievement. Meanwhile, the Bank's Cost-to-Income ratio (excluding taxes on financial services) increased marginally to 40.2% in the first six months of
2020, from 38.8% reported for the corresponding period in 2019. The main reason for this marginal increase was the drop in the key income sources during the first half of 2020.
Impairment Charges on Loans and Receivables
The Bank has provided a substantial credit loss provision for customers whose credit risk has significantly increased due to the prevailing economic recession. As a result, the impairment charge against individually significant customers increased to Rs 4.3 Bn in 1H 2020 from Rs 2.5 Bn in the corresponding period in 2019.
After analyzing the economic downturn, Sampath Bank management decided to increase the credit loss provision at the portfolio level as well. However, the collective impairment charge for the first six months of 2020 is lower compared to the first half of the last year due to the explanation given below. The credit quality of the loan portfolio was severely affected in April 2019 due to the terrorist attack that took place in April 2019 which prompted the Bank to increase its collective impairment provision in Q2 2019.
Business Growth
Sampath Bank's total asset base grew by 4.5% (annualized 9.0%) during the period under review to reach Rs 1 Tn as at 30th June 2020. It stood at Rs 962 Bn as at 31st December 2019. Gross loans & advances grew by 3.9% (annualized 7.8%) to reach Rs 748 Bn as at 30th June 2020, recording a growth of Rs 28 Bn for the period under review. The total deposit base increased by Rs 72 Bn for the same period, to reach Rs 790 Bn as at the reporting date, a growth of 10% (annualized 20%). Meanwhile, the CASA ratio, which stood at 36.6% as at 30th June 2020 improved marginally from the 31st December 2019 position of 35.2%.
Performance Ratios
Return on Average Equity (ROE) (after tax) declined from 11.78% as at 31st December 2019 to 7.56% as at 30th June 2020, in direct correlation to the lower PAT. Return on Average Assets (ROA) (before tax) also declined to 1.09% from 1.66% as at 31st December 2019.
The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Off-Shore Banking Unit stood well above the mandatory requirement of 20% throughout the period and ended up at 28.12% and 33.88% respectively as at 30th June 2020.
Capital Adequacy
The Bank's Common Equity Tier I Capital, Tier I Capital and Total Capital Adequacy ratios as at 30th June 2020 stood at 13.30%, 13.30% and 16.77% respectively, all well above the minimum regulatory requirement of 6.5%, 8% and 12.0%, applicable as at the reporting date.
STATEMENT OF PROFIT OR LOSS
Bank | Group | |||||||||||||
For the six months ended 30th June | For the quarter ended 30th June | For the six months ended 30th June | For the quarter ended 30th June | |||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | |||
(Audited) | ||||||||||||||
Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | |||
Gross income | 53,227,270 | 58,327,739 | (8.7) | 24,361,507 | 29,462,434 | (17.3) | 56,505,300 | 61,661,396 | (8.4) | 25,599,961 | 31,142,759 | (17.8) | ||
Interest income | 46,200,358 | 51,216,303 | (9.8) | 21,674,493 | 25,590,862 | (15.3) | 49,243,043 | 54,269,401 | (9.3) | 22,885,240 | 27,129,239 | (15.6) | ||
Less : Interest expense | 28,751,908 | 31,413,847 | (8.5) | 14,203,959 | 16,012,936 | (11.3) | 30,308,131 | 33,080,366 | (8.4) | 14,781,649 | 16,835,053 | (12.2) | ||
Net interest income | 17,448,450 | 19,802,456 | (11.9) | 7,470,534 | 9,577,926 | (22.0) | 18,934,912 | 21,189,035 | (10.6) | 8,103,591 | 10,294,186 | (21.3) | ||
Fee & commission income | 4,418,159 | 5,550,856 | (20.4) | 1,750,417 | 2,782,743 | (37.1) | 4,594,447 | 5,705,736 | (19.5) | 1,835,332 | 2,858,904 | (35.8) | ||
Less : Fee & commission expense | 630,612 | 881,898 | (28.5) | 206,820 | 389,916 | (47.0) | 630,912 | 882,527 | (28.5) | 206,940 | 390,050 | (46.9) | ||
Net fee & commission income | 3,787,547 | 4,668,958 | (18.9) | 1,543,597 | 2,392,827 | (35.5) | 3,963,535 | 4,823,209 | (17.8) | 1,628,392 | 2,468,854 | (34.0) | ||
Net (loss)/gain from trading | (106,541) | 2,168,215 | (104.9) | 557,580 | 671,896 | (17.0) | (106,541) | 2,168,215 | (104.9) | 557,580 | 671,896 | (17.0) | ||
Net gain on derecognition of financial assets | ||||||||||||||
- at fair value through profit or loss | 66,030 | 31,765 | 107.9 | 32,266 | 22,533 | 43.2 | 66,030 | 31,765 | 107.9 | 32,266 | 22,533 | 43.2 | ||
- at fair value through other comprehensive income | 21,790 | - | 100.0 | 15,958 | - | 100.0 | 21,790 | - | 100.0 | 15,958 | - | 100.0 | ||
- at amortised cost | - | 2,698 | (100.0) | - | - | - | - | 2,698 | (100.0) | - | - | - | ||
Net other operating income | 2,627,474 | (642,098) | 509.2 | 330,793 | 394,400 | (16.1) | 2,686,531 | (516,419) | 620.2 | 273,585 | 460,187 | (40.5) | ||
Total operating income | 23,844,750 | 26,031,994 | (8.4) | 9,950,728 | 13,059,582 | (23.8) | 25,566,257 | 27,698,503 | (7.7) | 10,611,372 | 13,917,656 | (23.8) | ||
Less: Impairment charge | 7,436,124 | 7,241,824 | 2.7 | 2,581,851 | 3,766,957 | (31.5) | 8,057,215 | 7,899,778 | 2.0 | 2,853,697 | 4,095,084 | (30.3) | ||
Net operating income | 16,408,626 | 18,790,170 | (12.7) | 7,368,877 | 9,292,625 | (20.7) | 17,509,042 | 19,798,725 | (11.6) | 7,757,675 | 9,822,572 | (21.0) | ||
Less: Operating expenses | ||||||||||||||
Personnel expenses | 4,806,267 | 4,921,547 | (2.3) | 2,201,577 | 2,316,636 | (5.0) | 5,284,371 | 5,332,885 | (0.9) | 2,442,288 | 2,510,536 | (2.7) | ||
Depreciation and amortisation expenses | 1,166,024 | 1,212,111 | (3.8) | 599,486 | 631,152 | (5.0) | 1,223,844 | 1,186,574 | 3.1 | 640,713 | 607,674 | 5.4 | ||
Other expenses | 3,608,999 | 3,975,432 | (9.2) | 1,630,966 | 2,023,861 | (19.4) | 3,908,015 | 4,292,746 | (9.0) | 1,785,776 | 2,137,583 | (16.5) | ||
Total operating expenses | 9,581,290 | 10,109,090 | (5.2) | 4,432,029 | 4,971,649 | (10.9) | 10,416,230 | 10,812,205 | (3.7) | 4,868,777 | 5,255,793 | (7.4) | ||
Operating profit before taxes on financial services | 6,827,336 | 8,681,080 | (21.4) | 2,936,848 | 4,320,976 | (32.0) | 7,092,812 | 8,986,520 | (21.1) | 2,888,898 | 4,566,779 | (36.7) | ||
Less: Taxes on financial services | ||||||||||||||
Value added tax | 1,503,655 | 1,723,590 | (12.8) | 664,399 | 834,748 | (20.4) | 1,612,376 | 1,811,083 | (11.0) | 709,871 | 875,897 | (19.0) | ||
Nation building tax | - | 229,812 | (100.0) | - | 111,300 | (100.0) | - | 242,804 | (100.0) | - | 117,479 | (100.0) | ||
Debt repayment levy | - | 941,079 | (100.0) | - | 455,772 | (100.0) | - | 992,617 | (100.0) | - | 480,244 | (100.0) | ||
Profit before income tax | 5,323,681 | 5,786,599 | (8.0) | 2,272,449 | 2,919,156 | (22.2) | 5,480,436 | 5,940,016 | (7.7) | 2,179,027 | 3,093,159 | (29.6) | ||
Less : Income tax expense | 1,356,719 | 1,689,818 | (19.7) | 806,973 | 985,012 | (18.1) | 1,484,068 | 1,767,015 | (16.0) | 858,905 | 1,031,252 | (16.7) | ||
Profit for the period | 3,966,962 | 4,096,781 | (3.2) | 1,465,476 | 1,934,144 | (24.2) | 3,996,368 | 4,173,001 | (4.2) | 1,320,122 | 2,061,907 | (36.0) | ||
Attributable to: | ||||||||||||||
Equity holders of the Bank | 3,966,962 | 4,096,781 | (3.2) | 1,465,476 | 1,934,144 | (24.2) | 3,996,368 | 4,173,001 | (4.2) | 1,320,122 | 2,061,907 | (36.0) | ||
Non controlling interest | - | - | - | - | - | - | ||||||||
3,966,962 | 4,096,781 | (3.2) | 1,465,476 | 1,934,144 | (24.2) | 3,996,368 | 4,173,001 | (4.2) | 1,320,122 | 2,061,907 | (36.0) | |||
Earnings per share - Basic/Diluted (Rs) | 10.40 | 13.80 | (24.6) | 3.84 | 6.52 | (41.0) | 10.48 | 14.06 | (25.5) | 3.46 | 6.95 | (50.2) |
1
STATEMENT OF COMPREHENSIVE INCOME
Bank | Group | |||||||||||||
For the six months ended 30th June | For the quarter ended 30th June | For the six months ended 30th June | For the quarter ended 30th June | |||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | |||
(Audited) | ||||||||||||||
Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | |||
Profit for the period | 3,966,962 | 4,096,781 | (3.2) | 1,465,476 | 1,934,144 | (24.2) | 3,996,368 | 4,173,001 | (4.2) | 1,320,122 | 2,061,907 | (36.0) | ||
Other comprehensive income | ||||||||||||||
Items that will be reclassified to profit or loss: | ||||||||||||||
Debt instruments at fair value through other comprehensive income: | ||||||||||||||
Gain arising on re-measurement | 228,308 | 78,796 | 189.7 | 233,652 | 38,825 | 501.8 | 228,308 | 78,796 | 189.7 | 233,652 | 38,825 | 501.8 | ||
Reclassification to profit or loss | (21,790) | - | (100.0) | (15,958) | - | (100.0) | (21,790) | - | (100.0) | (15,958) | - | (100.0) | ||
Changes in allowance for expected credit losses | 5,189 | - | 100.0 | 1,798 | - | 100.0 | 5,189 | - | 100.0 | 1,798 | - | 100.0 | ||
Deferred tax effect on the above | (59,278) | (22,063) | (168.7) | (61,458) | (10,871) | (465.3) | (59,278) | (22,063) | (168.7) | (61,458) | (10,871) | (465.3) | ||
152,429 | 56,733 | 168.7 | 158,034 | 27,954 | 465.3 | 152,429 | 56,733 | 168.7 | 158,034 | 27,954 | 465.3 | |||
Net other comprehensive income to be reclassified to profit or loss | 152,429 | 56,733 | 168.7 | 158,034 | 27,954 | 465.3 | 152,429 | 56,733 | 168.7 | 158,034 | 27,954 | 465.3 | ||
Items that will not to be reclassified to profit or loss: | ||||||||||||||
Equity instruments at fair value through other comprehensive income: | ||||||||||||||
Loss arising on re-measurement | (547,084) | (253,854) | (115.5) | (316,399) | (133,867) | (136.4) | (547,084) | (253,854) | (115.5) | (316,399) | (133,867) | (136.4) | ||
Exchange difference in translation | 50,577 | (36,140) | 239.9 | 6,313 | 5,603 | 12.7 | 50,577 | (36,140) | 239.9 | 6,313 | 5,603 | 12.7 | ||
Deferred tax effect on the above | 139,022 | 81,198 | 71.2 | 86,824 | 35,914 | 141.8 | 139,022 | 81,198 | 71.2 | 86,824 | 35,914 | 141.8 | ||
(357,485) | (208,796) | (71.2) | (223,262) | (92,350) | (141.8) | (357,485) | (208,796) | (71.2) | (223,262) | (92,350) | (141.8) | |||
Net other comprehensive income not to be reclassified to profit or loss | (357,485) | (208,796) | (71.2) | (223,262) | (92,350) | (141.8) | (357,485) | (208,796) | (71.2) | (223,262) | (92,350) | (141.8) | ||
Other comprehensive income net of tax | (205,056) | (152,063) | (34.8) | (65,228) | (64,396) | (1.3) | (205,056) | (152,063) | (34.8) | (65,228) | (64,396) | (1.3) | ||
Total comprehensive income for the period net of tax | 3,761,906 | 3,944,718 | (4.6) | 1,400,248 | 1,869,748 | (25.1) | 3,791,312 | 4,020,938 | (5.7) | 1,254,894 | 1,997,511 | (37.2) | ||
Attributable to: | ||||||||||||||
Equity holders of the Bank | 3,761,906 | 3,944,718 | (4.6) | 1,400,248 | 1,869,748 | (25.1) | 3,791,312 | 4,020,938 | (5.7) | 1,254,894 | 1,997,511 | (37.2) | ||
Non controlling interest | - | - | - | - | - | - | ||||||||
3,761,906 | 3,944,718 | (4.6) | 1,400,248 | 1,869,748 | (25.1) | 3,791,312 | 4,020,938 | (5.7) | 1,254,894 | 1,997,511 | (37.2) |
2
STATEMENT OF FINANCIAL POSITION
Bank | Group | |||||
As at | 30th June | 31st December | Change | 30th June | 31st December | Change |
2020 | 2019 | 2020 | 2019 | |||
(Audited) | (Audited) | |||||
Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % |
ASSETS
Cash & cash equivalents | 29,186,055 | 17,789,176 | 64.1 | 29,403,142 | 17,977,598 | 63.6 |
Balances with Central Bank of Sri Lanka | 12,482,619 | 31,028,270 | (59.8) | 12,482,619 | 31,028,270 | (59.8) |
Placements with banks | 1,064,050 | 7,251,305 | (85.3) | 1,064,050 | 7,251,305 | (85.3) |
Reverse repurchase agreements | 17,512,806 | - | 100.0 | 19,212,555 | 2,304,392 | 733.7 |
Derivative financial instruments | 1,310,794 | 862,754 | 51.9 | 1,310,794 | 862,754 | 51.9 |
Financial assets recognised through profit or loss - measured at fair value | 14,550,670 | 11,130,230 | 30.7 | 14,550,670 | 11,130,230 | 30.7 |
Financial assets at amortised cost | ||||||
- loans & advances | 711,267,503 | 689,377,504 | 3.2 | 744,153,936 | 719,046,634 | 3.5 |
- debt & other instruments | 166,807,633 | 156,293,495 | 6.7 | 166,853,252 | 156,308,796 | 6.7 |
Financial assets - fair value through other comprehensive income | 19,950,699 | 17,331,724 | 15.1 | 19,950,755 | 17,331,780 | 15.1 |
Investment in subsidiaries | 2,597,294 | 2,394,701 | 8.5 | - | - | - |
Property, plant & equipment | 8,304,145 | 8,466,366 | (1.9) | 15,773,808 | 15,702,051 | 0.5 |
Intangible assets | 881,069 | 995,137 | (11.5) | 931,267 | 1,055,341 | (11.8) |
Right-of-use assets | 3,563,530 | 4,059,219 | (12.2) | 2,969,150 | 3,208,266 | (7.5) |
Current tax receivables | - | - | - | 87,700 | 46,246 | 89.6 |
Deferred tax assets | 3,499,655 | 3,737,512 | (6.4) | 3,500,370 | 3,738,064 | (6.4) |
Other assets | 12,343,732 | 11,633,105 | 6.1 | 13,104,467 | 12,331,379 | 6.3 |
Total Assets | 1,005,322,254 | 962,350,498 | 4.5 | 1,045,348,535 | 999,323,106 | 4.6 |
LIABILITIES | ||||||
Due to banks | 2,678,398 | 1,511,665 | 77.2 | 2,678,398 | 1,567,974 | 70.8 |
Derivative financial instruments | 1,524,398 | 604,069 | 152.4 | 1,524,398 | 604,069 | 152.4 |
Securities sold under repurchase agreements | 1,405,852 | 16,398,511 | (91.4) | 1,344,656 | 16,384,511 | (91.8) |
Financial liabilities at amortised cost | ||||||
- due to depositors | 787,860,659 | 717,250,492 | 9.8 | 800,740,281 | 730,189,642 | 9.7 |
- due to other borrowers | 49,787,091 | 55,661,729 | (10.6) | 61,246,363 | 67,311,166 | (9.0) |
- due to debt securities holders | 36,882,097 | 37,642,049 | (2.0) | 40,845,589 | 41,371,586 | (1.3) |
Retirement benefit obligation | 3,622,625 | 3,651,642 | (0.8) | 3,727,688 | 3,741,781 | (0.4) |
Dividend payable | 247,518 | 88,898 | 178.4 | 247,518 | 88,898 | 178.4 |
Current tax liabilities | 3,499,333 | 7,427,315 | (52.9) | 3,928,087 | 7,835,445 | (49.9) |
Deferred tax liabilities | - | - | - | 1,322,549 | 1,405,568 | (5.9) |
Other liabilities | 13,528,899 | 17,108,344 | (20.9) | 16,977,375 | 17,365,839 | (2.2) |
Total Liabilities | 901,036,870 | 857,344,714 | 5.1 | 934,582,902 | 887,866,479 | 5.3 |
3
STATEMENT OF FINANCIAL POSITION
Bank | Group | |||||
As at | 30th June | 31st December | Change | 30th June | 31st December | Change |
2020 | 2019 | 2020 | 2019 | |||
(Audited) | (Audited) | |||||
Rs 000 | Rs 000 | % | Rs 000 | Rs 000 | % | |
EQUITY | ||||||
Stated capital | 47,622,493 | 47,622,493 | - | 47,622,493 | 47,622,493 | - |
Reserves | ||||||
Statutory reserves | 4,040,000 | 4,040,000 | - | 4,204,000 | 4,204,000 | - |
Other reserves | 47,031,418 | 47,236,649 | (0.4) | 50,000,211 | 50,205,442 | (0.4) |
Retained earnings | 5,591,473 | 6,106,642 | (8.4) | 8,938,929 | 9,424,692 | (5.2) |
Total equity attributable to equity holders of the Bank | 104,285,384 | 105,005,784 | (0.7) | 110,765,633 | 111,456,627 | (0.6) |
Non controlling interest | - | - | - | |||
Total Equity | 104,285,384 | 105,005,784 | (0.7) | 110,765,633 | 111,456,627 | (0.6) |
Total Liabilities & Equity | 1,005,322,254 | 962,350,498 | 4.5 | 1,045,348,535 | 999,323,106 | 4.6 |
Commitments & contingencies | 407,254,013 | 391,416,500 | 4.0 | 402,670,416 | 388,639,429 | 3.6 |
Net asset value per share (Rs) | 273.39 | 275.27 | (0.7) | 290.37 | 292.19 | (0.6) |
Memorandum information | ||||||
Number of employees | 4,095 | 4,134 | ||||
Number of branches | 229 | 229 |
CERTIFICATION:
I certify that the above Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007 and give a true and fair view of the state of affairs of Sampath Bank PLC and the Group as at 30th June 2020 and the profits for the period then ended.
(Sgd)
Ajantha de Vas Gunasekara
Group Chief Financial Officer
We, the undersigned, being the Chairman and the Managing Director of Sampath Bank PLC, certify jointly that:
- the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka; and
- the information contained in these statements have been extracted from the unaudited Financial Statements of the Bank and its Subsidiary companies unless indicated as audited.
(Sgd) | (Sgd) |
Prof Malik Ranasinghe | Nanda Fernando |
Chairman | Managing Director |
12th August 2020 |
4
STATEMENT OF CHANGES IN EQUITY
Bank
For the six months ended 30th June 2019 (Audited) | Stated | Statutory | Other Reserves | Retained | Total | ||
Capital | Reserve Fund | Revaluation | FVOCI Reserve | General | Earnings | Equity | |
Reserve | Reserve | ||||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Balance as at 1st January 2019 | 32,795,952 | 3,470,000 | 2,409,050 | 1,160,765 | 38,909,901 | 5,643,642 | 84,389,310 |
Total comprehensive income for the period | |||||||
Profit for the period | - | - | - | - | - | 4,096,781 | 4,096,781 |
Other comprehensive income | - | - | - | (152,063) | - | - | (152,063) |
Total comprehensive income for the period | - | - | - | (152,063) | - | 4,096,781 | 3,944,718 |
Transactions with equity holders, recognised directly in equity, | |||||||
contributions by and distributions to equity holders | |||||||
Right issue | 12,104,933 | - | - | - | - | - | 12,104,933 |
Final dividend for 2018: scrip | 2,721,608 | - | - | - | - | (3,160,150) | (438,542) |
Final dividend for 2018: cash | - | - | - | - | - | (1,404,511) | (1,404,511) |
Unclaimed dividend adjustment | - | - | - | - | 12,595 | - | 12,595 |
Total contributions by and distributions to equity holders | 14,826,541 | - | - | - | 12,595 | (4,564,661) | 10,274,475 |
Balance as at 30th June 2019 | 47,622,493 | 3,470,000 | 2,409,050 | 1,008,702 | 38,922,496 | 5,175,762 | 98,608,503 |
For the six months ended 30th June 2020 | Stated | Statutory | Other Reserves | Retained | Total | ||
Capital | Reserve Fund | Revaluation | FVOCI Reserve | General | Earnings | Equity | |
Reserve | Reserve | ||||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Balance as at 1st January 2020 | 47,622,493 | 4,040,000 | 2,993,599 | 807,879 | 43,435,171 | 6,106,642 | 105,005,784 |
Total comprehensive income for the period | |||||||
Profit for the period | - | - | - | - | - | 3,966,962 | 3,966,962 |
Other comprehensive income | - | - | - | (205,056) | - | - | (205,056) |
Total comprehensive income for the period | - | - | - | (205,056) | - | 3,966,962 | 3,761,906 |
Transactions with equity holders, recognised directly in equity, | |||||||
contributions by and distributions to equity holders | |||||||
Final dividend for 2019: cash | - | - | - | - | - | (4,482,131) | (4,482,131) |
Unclaimed dividend adjustment | - | - | - | - | (175) | - | (175) |
Total contributions by and distributions to equity holders | - | - | - | - | (175) | (4,482,131) | (4,482,306) |
Balance as at 30th June 2020 | 47,622,493 | 4,040,000 | 2,993,599 | 602,823 | 43,434,996 | 5,591,473 | 104,285,384 |
5 |
STATEMENT OF CHANGES IN EQUITY
Group
For the six months ended 30th June 2019 (Audited) | Stated | Statutory | Other Reserves | Retained | Total Equity | Non Controlling | Total | ||
Capital | Reserve Fund | Revaluation | FVOCI | General | Earnings | Attributable to | Interest | Equity | |
Reserve | Reserve | Reserve | Equity Holders | ||||||
of the Bank | |||||||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Balance as at 1st January 2019 | 32,795,952 | 3,609,000 | 5,093,155 | 1,160,765 | 38,909,901 | 8,481,881 | 90,050,654 | - | 90,050,654 |
Total comprehensive income for the period | |||||||||
Profit for the period | - | - | - | - | - | 4,173,001 | 4,173,001 | - | 4,173,001 |
Other comprehensive income | - | - | - | (152,063) | - | - | (152,063) | - | (152,063) |
Total comprehensive income for the period | - | - | - | (152,063) | - | 4,173,001 | 4,020,938 | - | 4,020,938 |
Transactions with equity holders, recognised directly in equity, | |||||||||
contributions by and distributions to equity holders | |||||||||
Rights issue | 12,104,933 | - | - | - | - | - | 12,104,933 | - | 12,104,933 |
Final dividend for 2018: scrip | 2,721,608 | - | - | - | - | (3,160,150) | (438,542) | - | (438,542) |
Final dividend for 2018: cash | - | - | - | - | - | (1,404,511) | (1,404,511) | - | (1,404,511) |
Unclaimed dividend adjustment | - | - | - | - | 12,595 | - | 12,595 | - | 12,595 |
Total contributions by and distributions to equity holders | 14,826,541 | - | - | - | 12,595 | (4,564,661) | 10,274,475 | - | 10,274,475 |
Balance as at 30th June 2019 | 47,622,493 | 3,609,000 | 5,093,155 | 1,008,702 | 38,922,496 | 8,090,221 | 104,346,067 | - | 104,346,067 |
For the six months ended 30th June 2020 | Stated | Statutory | Other Reserves | Retained | Total Equity | Non Controlling | Total | ||
Capital | Reserve Fund | Revaluation | FVOCI | General | Earnings | Attributable to | Interest | Equity | |
Reserve | Reserve | Reserve | Equity Holders | ||||||
of the Bank | |||||||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Balance as at 1st January 2020 | 47,622,493 | 4,204,000 | 5,962,392 | 807,879 | 43,435,171 | 9,424,692 | 111,456,627 | - | 111,456,627 |
Total comprehensive income for the period | |||||||||
Profit for the period | - | - | - | - | - | 3,996,368 | 3,996,368 | - | 3,996,368 |
Other comprehensive income | - | - | - | (205,056) | - | - | (205,056) | - | (205,056) |
Total comprehensive income for the period | - | - | - | (205,056) | - | 3,996,368 | 3,791,312 | - | 3,791,312 |
Transactions with equity holders, recognised directly in equity, | |||||||||
contributions by and distributions to equity holders | |||||||||
Final dividend for 2019: cash | - | - | - | - | - | (4,482,131) | (4,482,131) | - | (4,482,131) |
Unclaimed dividend adjustment | - | - | - | - | (175) | - | (175) | - | (175) |
Total contributions by and distributions to equity holders | - | - | - | - | (175) | (4,482,131) | (4,482,306) | - | (4,482,306) |
Balance as at 30th June 2020 | 47,622,493 | 4,204,000 | 5,962,392 | 602,823 | 43,434,996 | 8,938,929 | 110,765,633 | - | 110,765,633 |
6 |
STATEMENT OF CASH FLOWS | |||||||
Bank | Group | ||||||
For the six months ended 30th June | 2020 | 2019 | 2020 | 2019 | |||
(Audited) | |||||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | ||||
Cash flows from operating activities | |||||||
Interest receipts | 36,996,494 | 49,733,610 | 39,975,098 | 52,708,579 | |||
Interest payments | (30,570,097) | (31,010,110) | (31,897,498) | (32,285,203) | |||
Net commission receipts | 3,695,687 | 4,652,093 | 3,871,675 | 4,806,344 | |||
Cash payments to employees | (4,815,832) | (5,231,808) | (5,276,788) | (5,628,145) | |||
Taxes on financial services | (2,451,071) | (3,161,832) | (2,559,792) | (3,313,855) | |||
Receipts from other operating activities | 2,425,606 | (227,103) | 2,686,259 | (30,336) | |||
Cash payments to other operating activities | (3,863,634) | (4,156,978) | (3,932,965) | (3,961,158) | |||
Operating profit before changes in operating assets & liabilities | 1,417,153 | 10,597,872 | 2,865,989 | 12,296,226 | |||
(Increase)/decrease in operating assets | |||||||
Balances with Central Bank of Sri Lanka | 18,545,651 | 5,240,578 | 18,545,651 | 5,240,578 | |||
Financial assets at amortised cost - loans & advances | (20,544,772) | (18,779,124) | (24,303,896) | (21,097,414) | |||
Other assets | (549,564) | (830,567) | (628,844) | (865,568) | |||
(2,548,685) | (14,369,113) | (6,387,089) | (16,722,404) | ||||
Increase/(decrease) in operating liabilities | |||||||
Due to banks | 1,562,157 | (5,480,500) | 1,562,157 | (5,480,500) | |||
Re-purchase agreements | (14,959,566) | (11,809,405) | (15,006,762) | (11,804,624) | |||
Financial liabilities at amortised cost - due to depositors | 71,488,769 | 7,971,077 | 71,415,747 | 11,071,061 | |||
Financial liabilities at amortised cost - due to other borrowers | (5,725,034) | 619,203 | (5,896,572) | (509,402) | |||
Other liabilities | (1,591,814) | 971,804 | 1,107,666 | 794,609 | |||
50,774,512 | (7,727,821) | 53,182,236 | (5,928,856) | ||||
Net cash generated from/(used in) operating activities before income tax | 49,642,980 | (11,499,062) | 49,661,136 | (10,355,034) | |||
Income tax paid | (4,967,100) | (2,585,676) | (5,171,390) | (2,626,780) | |||
Net cash generated from/(used in) operating activities | 44,675,880 | (14,084,738) | 44,489,746 | (12,981,814) | |||
Cash flows from investing activities | |||||||
Purchase of property, plant & equipment | (233,347) | (333,447) | (692,148) | (902,760) | |||
Proceeds from disposal of property plant & equipment | 2,098 | 3,449 | 2,731 | 8,272 | |||
Net cash flow from reverse repurchase agreements | (17,506,692) | (2,499,999) | (16,902,049) | (3,102,790) | |||
Net cash flow from financial assets - FVPL | (2,990,023) | 14,977,970 | (2,990,023) | 14,977,970 | |||
Net cash flow from debt instruments at amortised cost. | (10,444,301) | (39,163,725) | (10,474,619) | (39,163,733) | |||
Net cash flow from financial assets - FVOCI | (2,833,997) | 15,323,951 | (2,833,997) | 15,323,951 | |||
Purchase of intangible assets | (100,828) | (89,830) | (103,519) | (90,530) | |||
Dividend received from financial assets | 1,360 | 124,123 | 1,360 | 124,123 | |||
Dividend received from subsidiaries | 4,828 | - | - | - | |||
Net cash used in investing activities | (34,100,902) | (11,657,508) | (33,992,264) | (12,825,497) | |||
Cash flows from financing activities | |||||||
Proceeds from the issue of debentures | - | 7,000,000 | - | 7,000,000 | |||
Rights issue | - | 12,104,933 | - | 12,104,933 | |||
Dividend paid | (4,482,131) | (1,843,053) | (4,482,131) | (1,843,053) | |||
Repayment of principal portion of lease liabilities | (472,480) | (488,003) | (310,010) | (262,986) | |||
Net cash (used in)/generated from financing activities | (4,954,611) | 16,773,877 | (4,792,141) | 16,998,894 | |||
Net cash generated during the period | 5,620,367 | (8,968,369) | 5,705,341 | (8,808,417) | |||
Cash & cash equivalents at the beginning of the year | 24,593,341 | 26,624,318 | 24,725,465 | 26,727,226 | |||
Cash & cash equivalents at the end of the period | 30,213,708 | 17,655,949 | 30,430,806 | 17,918,809 | |||
7 |
NOTES TO THE FINANCIAL STATEMENTS
1. Analysis of Loans and Advances and Impairment
Bank | Group | |||||
As at | 30.06.2020 | 31.12.2019 | 30.06.2020 | 31.12.2019 | ||
(Audited) | (Audited) | |||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
1.1 Gross loans & advances | 747,728,503 | 719,623,694 | 782,993,951 | 751,077,905 | ||
Less: Accumulated impairment under stage 1 | 3,980,979 | 3,838,089 | 4,083,643 | 3,930,386 | ||
Accumulated impairment under stage 2 | 7,051,958 | 5,516,738 | 7,166,025 | 5,642,568 | ||
Accumulated impairment under stage 3 | 25,428,063 | 20,891,363 | 27,590,347 | 22,458,317 | ||
Net loans & advances | 711,267,503 | 689,377,504 | 744,153,936 | 719,046,634 | ||
1.2 Product-wise loans and advances | ||||||
Local currency | ||||||
Bills of exchange | 396,281 | 463,168 | 396,281 | 463,168 | ||
Leasing | 32,057,330 | 31,898,575 | 63,888,039 | 61,738,905 | ||
Housing loans | 45,172,131 | 43,280,931 | 45,172,131 | 43,280,931 | ||
Export loans | 2,561,700 | 1,738,969 | 2,561,700 | 1,738,969 | ||
Import loans | 66,251,700 | 65,293,369 | 66,251,700 | 64,090,962 | ||
Refinance loans | 14,388,492 | 12,100,433 | 14,388,492 | 12,100,433 | ||
Term loans | 322,851,789 | 311,781,833 | 324,898,420 | 313,252,282 | ||
Hire purchase | 7,752 | 13,217 | 20,924 | 24,328 | ||
Loans against investment fund account (IFA) | 103,382 | 109,523 | 103,382 | 109,523 | ||
Overdraft | 86,653,528 | 90,231,915 | 86,551,720 | 90,088,904 | ||
Staff loans | 8,393,347 | 8,301,356 | 8,559,306 | 8,486,523 | ||
Pawning | 31,639,264 | 33,170,643 | 31,639,264 | 33,170,643 | ||
Credit cards | 14,859,228 | 16,390,482 | 14,859,228 | 16,390,482 | ||
Money market loans | 22,432,603 | 8,987,078 | 22,432,603 | 8,987,078 | ||
Factoring | 2,954,480 | 3,856,292 | 3,800,188 | 4,857,674 | ||
Others | 13,845 | 58,126 | 478,922 | 349,316 | ||
Sub total | 650,736,852 | 627,675,910 | 686,002,300 | 659,130,121 | ||
Foreign currency | ||||||
Bills of exchange | 2,170,358 | 2,124,676 | 2,170,358 | 2,124,676 | ||
Housing loans | 1,039,169 | 1,075,431 | 1,039,169 | 1,075,431 | ||
Export loans | 26,829,380 | 25,674,968 | 26,829,380 | 25,674,968 | ||
Import loans | 7,350,254 | 4,243,612 | 7,350,254 | 4,243,612 | ||
Term loans | 54,088,847 | 54,236,868 | 54,088,847 | 54,236,868 | ||
Overdraft | 5,434,243 | 4,556,316 | 5,434,243 | 4,556,316 | ||
Others | 79,400 | 35,913 | 79,400 | 35,913 | ||
Sub total | 96,991,651 | 91,947,784 | 96,991,651 | 91,947,784 | ||
Total gross loans and advances | 747,728,503 | 719,623,694 | 782,993,951 | 751,077,905 | ||
1.3 Movement of Impairment During the period | ||||||
Bank | Stage 1 | Stage 2 | Stage 3 | Total | ||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Balance as at 1st January 2020 | 3,838,089 | 5,516,738 | 20,891,363 | 30,246,190 | ||
Net charge to profit or loss | 142,890 | 1,535,220 | 5,554,599 | 7,232,709 | ||
Write-off during the period | - | - | (19,440) | (19,440) | ||
Interest income accrued on impaired loans & advances | - | - | (1,824,803) | (1,824,803) | ||
Other movements | - | - | 826,344 | 826,344 | ||
Balance as at 30th June 2020 | 3,980,979 | 7,051,958 | 25,428,063 | 36,461,000 | ||
Group | Stage 1 | Stage 2 | Stage 3 | Total | ||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Balance as at 1st January 2020 | 3,930,386 | 5,642,568 | 22,458,317 | 32,031,271 | ||
Net charge to profit or loss | 153,257 | 1,523,457 | 6,165,863 | 7,842,577 | ||
Write-off during the period | - | - | (19,440) | (19,440) | ||
Interest income accrued on impaired loans & advances | - | - | (1,840,737) | (1,840,737) | ||
Other movements | - | - | 826,344 | 826,344 | ||
Balance as at 30th June 2020 | 4,083,643 | 7,166,025 | 27,590,347 | 38,840,015 | ||
8
NOTES TO THE FINANCIAL STATEMENTS
2. Analysis of Commitments and Contingencies and Impairment
Bank | Group | |||||
As at | 30.06.2020 | 31.12.2019 | 30.06.2020 | 31.12.2019 | ||
(Audited) | (Audited) | |||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
2.1 Gross commitments and contingencies | 408,510,013 | 392,833,728 | 403,926,964 | 390,056,933 | ||
Less: Accumulated impairment under stage 1 | 848,543 | 775,864 | 849,091 | 775,981 | ||
Accumulated impairment under stage 2 | 285,341 | 297,123 | 285,341 | 297,282 | ||
Accumulated impairment under stage 3 | 122,116 | 344,241 | 122,116 | 344,241 | ||
Net commitments and contingencies | 407,254,013 | 391,416,500 | 402,670,416 | 388,639,429 | ||
2.2 Product-wise commitments and contingencies | ||||||
Local currency | ||||||
Credit related commitments & contingencies | ||||||
Undrawn - direct credit facilities | 127,510,552 | 119,899,774 | 121,804,607 | 115,833,027 | ||
Undrawn - indirect credit facilities | 43,517,591 | 43,755,348 | 43,517,591 | 43,755,348 | ||
Acceptances | 85,518 | 35,202 | 85,518 | 35,202 | ||
Documentary credit | 287,516 | 1,253,178 | 287,516 | 1,253,178 | ||
Guarantees | 45,350,761 | 47,040,632 | 45,354,461 | 47,045,832 | ||
216,751,938 | 211,984,134 | 211,049,693 | 207,922,587 | |||
Other commitments & contingencies | ||||||
Capital commitments | 1,181,582 | 952,390 | 2,300,778 | 2,237,142 | ||
Operating lease commitments | 52,122 | 46,287 | 52,122 | 46,287 | ||
1,233,704 | 998,677 | 2,352,900 | 2,283,429 | |||
Sub total | 217,985,642 | 212,982,811 | 213,402,593 | 210,206,016 | ||
Foreign currency | ||||||
Credit related commitments & contingencies | ||||||
Undrawn - direct credit facilities | 23,922,297 | 29,735,694 | 23,922,297 | 29,735,694 | ||
Undrawn - indirect credit facilities | 1,132,128 | 1,709,364 | 1,132,128 | 1,709,364 | ||
Acceptances | 11,170,636 | 14,134,602 | 11,170,636 | 14,134,602 | ||
Documentary credit | 17,124,188 | 16,082,147 | 17,124,188 | 16,082,147 | ||
Guarantees | 1,750,969 | 2,094,327 | 1,750,969 | 2,094,327 | ||
55,100,218 | 63,756,134 | 55,100,218 | 63,756,134 | |||
Other commitments & contingencies | ||||||
Capital commitments | 3,449 | 45,958 | 3,449 | 45,958 | ||
Forward exchange contracts | 33,760,588 | 13,218,467 | 33,760,588 | 13,218,467 | ||
Currency SWAPs | 101,660,116 | 102,830,358 | 101,660,116 | 102,830,358 | ||
135,424,153 | 116,094,783 | 135,424,153 | 116,094,783 | |||
Sub total | 190,524,371 | 179,850,917 | 190,524,371 | 179,850,917 | ||
Total gross commitments and contingencies | 408,510,013 | 392,833,728 | 403,926,964 | 390,056,933 | ||
2.3 Movement of Impairment During the period | ||||||
Bank | Stage 1 | Stage 2 | Stage 3 | Total | ||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Balance as at 1st January 2020 | 775,864 | 297,123 | 344,241 | 1,417,228 | ||
Net charge to profit or loss | 72,679 | (11,782) | (222,125) | (161,228) | ||
Write-off during the period | - | - | - | - | ||
Other movements | - | - | - | - | ||
Balance as at 30th June 2020 | 848,543 | 285,341 | 122,116 | 1,256,000 | ||
Group | Stage 1 | Stage 2 | Stage 3 | Total | ||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Balance as at 1st January 2020 | 775,981 | 297,282 | 344,241 | 1,417,504 | ||
Net charge to profit or loss | 73,110 | (11,941) | (222,125) | (160,956) | ||
Write-off during the period | - | - | - | - | ||
Other movements | - | - | - | - | ||
Balance as at 30th June 2020 | 849,091 | 285,341 | 122,116 | 1,256,548 | ||
9
NOTES TO THE FINANCIAL STATEMENTS
3. Analysis of Deposits
Bank | Group | |||||
As at | 30.06.2020 | 31.12.2019 | 30.06.2020 | 31.12.2019 | ||
(Audited) | (Audited) | |||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Local Currency Deposits | ||||||
Demand deposits | 36,099,007 | 31,425,842 | 36,086,975 | 31,415,117 | ||
Saving deposits | 221,257,236 | 193,430,471 | 218,344,448 | 193,430,628 | ||
Call deposits | 34,157 | 65,370 | 34,157 | 65,370 | ||
Fixed deposits | 433,686,075 | 404,651,874 | 449,490,517 | 417,601,592 | ||
Certificates of deposits | 13,603,284 | 13,039,590 | 13,603,284 | 13,039,590 | ||
Margin deposits | 1,083,889 | 1,037,075 | 1,083,889 | 1,037,075 | ||
Total local currency deposits | 705,763,648 | 643,650,222 | 718,643,270 | 656,589,372 | ||
Foreign Currency Deposits | ||||||
Demand deposits | 5,129,442 | 3,611,703 | 5,129,442 | 3,611,703 | ||
Saving deposits | 24,935,345 | 23,671,412 | 24,935,345 | 23,671,412 | ||
Fixed deposits | 51,790,310 | 46,020,700 | 51,790,310 | 46,020,700 | ||
Margin deposits | 241,914 | 296,455 | 241,914 | 296,455 | ||
Total foreign currency deposits | 82,097,011 | 73,600,270 | 82,097,011 | 73,600,270 | ||
Total deposits | 787,860,659 | 717,250,492 | 800,740,281 | 730,189,642 |
EXPLANATORY NOTES
- There are no changes to the accounting policies and methods of computation since the publication of the annual accounts for the year 2019.
- The Group Financial Statements comprise a consolidation of the Bank and its fully owned subsidiaries, Siyapatha Finance PLC, Sampath Centre Ltd, SC Securities (Pvt) Ltd and Sampath Information Technology Solutions Ltd.
- There are no material changes during the period in the composition of assets, liabilities and contingent liabilities. All known expenditure items have been provided for.
- These interim Financial Statements are presented in accordance with Sri Lanka Accounting Standard - LKAS 34 (Interim Financial Reporting) and provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.
5. Market Price of a Share | 2020 (Rs) | 2019 (Rs) | |
Market Price as at 30th June | 126.40 | 139.20 | |
Highest Market Price during the quarter ended 30th June | 130.00 | 174.90 | |
Lowest Market Price during the quarter ended 30th June | 96.00 | 136.00 | |
Weighted Average Market price during the quarter ended 30th June | 114.85 | 148.82 |
10
EXPLANATORY NOTES (Contd…)
- There are no material events that took place after the reporting date which require adjustment to or disclosure in the Financial Statements other than the item disclosed in Note 11 below .
-
Comparative Information
The Bank re-classified comparative information wherever necessary to conform to the current period's presentation.
7.1 Statement of Profit or Loss
The following line items in the Statement of Profit or Loss for the period ended 30th June 2019 were reclassified to conform to the current period's presentation.
For the period ended 30th June 2019 | Bank | Group | ||
Reclassified | As reported in | Reclassified | As reported in | |
2019 | 2019 | |||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Net gain/(loss) from trading | 2,168,215 | 2,199,980 | 2,168,215 | 2,199,980 |
Net gain/(loss) on derecognition of financial assets | ||||
- at fair value through profit or loss | 31,765 | - | 31,765 | - |
Depreciation and amortisation expenses | 1,212,111 | 645,961 | 1,186,574 | 809,989 |
Other expenses | 3,975,432 | 4,541,582 | 4,292,746 | 4,669,331 |
- COVID - 19 Impact
Although it appears that the Sri Lankan economy is returning to normalcy after a prolonged lockdown, the impact created by COVID-19 is likely to prevail for some time as the majority of the world still continues to operate under mobility restrictions in a bid to control the spread of Covid-19. These restrictions will no doubt continue to impact most of the key segments of the Sri Lankan economy while the banking sector too will continue to remain under pressure for the rest of the year.
Amidst this backdrop, Sampath Bank is fully committed to support the relief measures introduced by the government in a bid to revive the economy. Taking immediate action in this regard, approximately 50% of the Bank's loan portfolio was granted relief under the government announced moratorium scheme, which resulted in a substantial drop in
Bank's NII for the quarter ended 30th June 2020. However, the Bank sees these relief measures as a national duty and continues to provide the necessary assistance to all segments who are requiring special attention.
While it is difficult to gauge the real impact, given that the COVID-19 situation is still evolving, the Bank has made adequate impairment provisions to ensure that the impact to it's loan book is adequately reflected in the financial statements. While continuing to use the Probabilities of Default (PDs) prevailed as at 31st December 2019, as permitted by the "COVID - 19 Pandemic: Guidance Notes on the Implications on Financial Reporting" issued by CA Sri Lanka, the Bank has made additional provisions for customers who have shown signs of stress and continue to carry an increased credit risk. In addition to these provisions made for identified significant customers, the Bank also made an additional provision by way of a management overlay, changing the probabilities assigned for macro-economic variables.
The Bank used the prices / yield rates prevailed as at 30th June 2020 to ascertain the fair value of investments recognized at Fair Value through Profit or Loss (FVPL) and Fair Value through Other Comprehensive Income (FVOCI). The resultant gains and losses have been accounted in Profit or Loss / OCI respectively for FTPL and FVOCI portfolios.
The Bank will continue to assess the financial implications from COVID - 19 and the effect of relief measures and incorporate the required adjustments to the financial statements as and when reliable information become available. - New amendments to Income Tax Law announced by the Government
As per the announcement dated 12th February 2020, income tax rate applicable for the Banking sector has been reduced to 24% with effect from 01st January 2020. However, given the fact that the said amendment is yet to be enacted, both income tax and deferred tax were calculated at the rate of 28% for the period ended 30th June 2020.
Had we considered the revised rate of 24%, the income tax charge recognised in the P&L would have increased by Rs 389 Mn. This includes a reversal of Rs 219 Mn in current tax expense and an additional charge of Rs 608 Mn in deferred tax. Further, deferred tax charge to OCI will be reduced by Rs 108 Mn. - Funds Raised in Previous Years
The funds raised via capital markets in the previous years were fully utilised for the objectives stated in the relevant prospectuses. - Mr S. H. Amarasekera (Non-Executive, Non Independent Director) was appointed to the Board of Directors effective from 18th August 2020.
11
SAMPATH BANK PLC (ORDINARY SHARES)
TOP 20 SHAREHOLDERS AS AT 30TH JUNE 2020
Name of the Shareholder | No. of shares | % holding | |
1 | Vallibel One PLC | 57,039,028 | 14.95 |
2 | Employees' Provident Fund | 38,041,260 | 9.97 |
3 | Mr Y S H I Silva* | 31,266,429 | 8.20 |
4 | Ayenka Holdings Private Limited | 18,006,054 | 4.72 |
5 | Rosewood (Pvt) Limited - Account No.1 | 17,068,459 | 4.47 |
6 | BBH-Matthews International Funds-Matthews Asia Growth Fund | 13,125,953 | 3.44 |
7 | Citi Bank Newyork S/A Norges Bank Account 2 | 11,404,089 | 2.99 |
8 | Sri Lanka Insurance Corporation Ltd - Life Fund | 9,943,521 | 2.61 |
9 | Akbar Brothers Pvt Ltd A/C No. 1 | 8,414,541 | 2.21 |
10 | Phoenix Ventures Private Limited | 8,303,325 | 2.18 |
11 | BBH-Matthews Emerging Asia Fund | 7,399,518 | 1.94 |
12 | Employees Trust Fund Board | 5,372,517 | 1.41 |
13 | Pemberton Asian Opportunities Fund | 4,246,166 | 1.11 |
14 | Sampath Bank PLC Account No. 4 (Sampath Bank Pension Fund) | 3,848,882 | 1.01 |
15 | Seylan Bank PLC / W D N H Perera | 3,611,759 | 0.95 |
16 | SEB AB - Tundra Sustainable Frontier Fund | 3,440,766 | 0.90 |
17 | Jinadasa Brothers (Pvt) Ltd | 2,829,629 | 0.74 |
18 | Morgan Stanley and Co.LLC-RWC Frontier Markets Equity Master Fund | 2,664,471 | 0.70 |
19 | SSBT-AL Mehwar Commercial Investments L.L.C. | 2,432,466 | 0.64 |
20 | Commercial Bank of Ceylon PLC/P.Subasinghe | 2,390,500 | 0.63 |
250,849,333 | 65.76 | ||
Shares held by Directors | 647,587 | 0.17 | |
Balance held by other shareholders | 129,961,065 | 34.07 | |
Total | 381,457,985 | 100.00 |
*Mr Rushanka Silva, the Managing Director of Indra Traders (Pvt) Ltd, was appointed as a Non Executive, Non Independent Director of the Bank with effect from 01st September 2017. Accordingly the shareholding of Mr Y S H I Silva, who is the main shareholder of Indra Traders (Pvt) Ltd, has been excluded from the public shareholding of the Bank.
As at | 30.06.2020 |
Number of public shareholders | 24,489 |
Percentage of public holding | 90.61% |
Float Adjusted Market Capitalization | Rs 44 Bn |
Bank complies with the minimum public holding requirement under option 1 of listing rules section 7.13.1 (a).
12
Directors' Holding in Shares of Sampath Bank PLC | |||
No. of shares held | |||
Director's Name | As at 30.06.2020 | As at 31.12.2019 | |
1 | Prof M Ranasinghe | 50,135 | 15,135 |
2 | Ms D S Wijayatilake | - | - |
3 | Ms A Senanayake | - | - |
4 | Mr R Pathirana | 24,456 | 24,456 |
5 | Mr Rushanka Silva | - | - |
6 | Mr D K de Silva Wijeyeratne | - | - |
7 | Ms A Nanayakkara | - | - |
8 | Dr J T V S Weerawarana | - | - |
9 | Mr Deshal De Mel | - | - |
10 | Mr Vajira Kulatilaka (appointed w.e.f. 25th June 2020) | - | Not applicable |
11 | Mr M N R Fernando (Managing Director) | 572,996 | 572,996 |
13
Segment Information - Group
Banking | Leasing, Hire purchase & | Dealing/Investment | Other | Eliminations/Unallocated | Total | |||||||||
Factoring | ||||||||||||||
For the six months ended 30th June | ||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Net interest income | 14,341,363 | 16,364,582 | 1,857,612 | 1,916,671 | 2,735,937 | 2,907,782 | - | - | - | - | 18,934,912 | 21,189,035 | ||
Dividend income | - | - | - | - | 4,759 | 127,850 | - | - | - | - | 4,759 | 127,850 | ||
Net fee & commission income | 3,734,454 | 4,610,926 | 191,231 | 205,087 | 37,850 | 7,196 | - | - | - | - | 3,963,535 | 4,823,209 | ||
Foreign exchange profit | 631,070 | (320,257) | - | - | 1,220,151 | 1,403,588 | - | - | - | - | 1,851,221 | 1,083,331 | ||
Other income | 101,079 | 131,748 | 150,381 | 158,379 | 458,843 | 151,609 | 101,527 | 33,342 | - | - | 811,830 | 475,078 | ||
Total revenue from external customers | 18,807,966 | 20,786,999 | 2,199,224 | 2,280,137 | 4,457,540 | 4,598,025 | 101,527 | 33,342 | - | - | 25,566,257 | 27,698,503 | ||
Inter segment revenue | 269,618 | 130,364 | - | - | - | - | 229,395 | 349,917 | (499,013) | (480,281) | - | - | ||
Total operating income | 19,077,584 | 20,917,363 | 2,199,224 | 2,280,137 | 4,457,540 | 4,598,025 | 330,922 | 383,259 | (499,013) | (480,281) | 25,566,257 | 27,698,503 | ||
Less :Impairment charge | 6,986,197 | 6,775,635 | 710,746 | 808,187 | 354,817 | 305,584 | 5,455 | 10,372 | - | - | 8,057,215 | 7,899,778 | ||
Net operating Income | 12,091,387 | 14,141,728 | 1,488,478 | 1,471,950 | 4,102,723 | 4,292,441 | 325,467 | 372,887 | (499,013) | (480,281) | 17,509,042 | 19,798,725 | ||
Less : Total operating expenses | 8,029,894 | 8,604,678 | 758,983 | 857,240 | 1,642,676 | 1,475,066 | 276,269 | 285,816 | (291,592) | (410,595) | 10,416,230 | 10,812,205 | ||
Segment result | 4,061,493 | 5,537,050 | 729,495 | 614,710 | 2,460,047 | 2,817,375 | 49,198 | 87,071 | (207,421) | (69,686) | 7,092,812 | 8,986,520 | ||
Less: Taxes on financial services | 1,612,376 | 3,046,504 | ||||||||||||
Less: Income tax expenses | 1,484,068 | 1,767,015 | ||||||||||||
Profit for the period | 3,996,368 | 4,173,001 | ||||||||||||
Non controlling interest | - | - | ||||||||||||
Profit attributable to equity holders of the Bank | 3,996,368 | 4,173,001 | ||||||||||||
As at 30th June | ||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Segment assets | 714,774,201 | 685,159,936 | 75,610,749 | 63,782,317 | 221,559,843 | 193,013,829 | 7,408,513 | 6,945,269 | (12,376,038) | (10,316,194) | 1,006,977,268 | 938,585,157 | ||
Unallocated assets | - | - | - | - | - | - | - | - | 38,371,267 | 23,023,215 | 38,371,267 | 23,023,215 | ||
Total assets | 714,774,201 | 685,159,936 | 75,610,749 | 63,782,317 | 221,559,843 | 193,013,829 | 7,408,513 | 6,945,269 | 25,995,229 | 12,707,021 | 1,045,348,535 | 961,608,372 | ||
Segment liabilities | 575,250,624 | 536,617,870 | 81,486,621 | 68,810,412 | 283,823,201 | 257,190,498 | 2,777,475 | 2,580,683 | (8,755,019) | (7,937,158) | 934,582,902 | 857,262,305 | ||
Unallocated liabilities | - | - | - | - | - | - | - | - | - | - | - | - | ||
Total liabilities | 575,250,624 | 536,617,870 | 81,486,621 | 68,810,412 | 283,823,201 | 257,190,498 | 2,777,475 | 2,580,683 | (8,755,019) | (7,937,158) | 934,582,902 | 857,262,305 | ||
For the six months ended 30th June | ||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | Rs 000 | |||
Cash flows from operating activities | 44,675,880 | (14,084,738) | 1,595,220 | 1,580,367 | 32,494 | (3,771) | 341,446 | 178,457 | (2,155,294) | (652,129) | 44,489,746 | (12,981,814) | ||
Cash flows from investing activities | - | - | 396,716 | (2,630,076) | (33,767,415) | (11,237,604) | (242,505) | (209,044) | (379,060) | 1,251,227 | (33,992,264) | (12,825,497) | ||
Cash flows from financing activities | (4,954,611) | 16,773,877 | 438,175 | (604,736) | - | - | (389,969) | 128,697 | 114,264 | 701,056 | (4,792,141) | 16,998,894 | ||
Capital expenditure | - | - | (166,413) | (258,297) | - | - | (281,148) | (62,784) | (348,106) | (672,209) | (795,667) | (993,290) | ||
14
ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS
Bank - As at 30th June 2020
Fair value | Fair Value | |||
through Other | ||||
through Profit or | Amortised Cost | Total | ||
Financial Assets | Comprehensive | |||
Loss | ||||
Income | ||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Cash & cash equivalents | - | 29,186,055 | - | 29,186,055 |
Balances with Central Bank of Sri Lanka | - | 12,482,619 | - | 12,482,619 |
Placements with banks | - | 1,064,050 | - | 1,064,050 |
Reverse repurchase agreements | - | 17,512,806 | - | 17,512,806 |
Derivative financial instruments | 1,310,794 | - | - | 1,310,794 |
Financial assets recognised through profit or loss - measured at fair value | 14,550,670 | - | - | 14,550,670 |
Financial assets at amortised cost | ||||
- loans & advances | - | 711,267,503 | - | 711,267,503 |
- debt & other instruments | - | 166,807,633 | - | 166,807,633 |
Financial assets - fair value through other comprehensive income | - | - | 19,950,699 | 19,950,699 |
Other assets | - | 7,781,557 | - | 7,781,557 |
Total Financial Assets | 15,861,464 | 946,102,223 | 19,950,699 | 981,914,386 |
Fair value | ||||
Financial Liabilities | through Profit or | Amortised Cost | Total | |
Loss | ||||
Rs 000 | Rs 000 | Rs 000 | ||
Due to banks | - | 2,678,398 | 2,678,398 | |
Derivative financial instruments | 1,524,398 | - | 1,524,398 | |
Securities sold under repurchase agreements | - | 1,405,852 | 1,405,852 | |
Financial liabilities at amortised cost | ||||
- due to depositors | - | 787,860,659 | 787,860,659 | |
- due to other borrowers | - | 49,787,091 | 49,787,091 | |
- due to debt securities holders | - | 36,882,097 | 36,882,097 | |
Dividend payable | - | 247,518 | 247,518 | |
Other liabilities | - | 11,235,197 | 11,235,197 | |
Total Financial Liabilities | 1,524,398 | 890,096,812 | 891,621,210 | |
Bank - As at 31st December 2019 (Audited) | ||||
Fair value | Fair Value | |||
through Other | ||||
through Profit or | Amortised Cost | Total | ||
Financial Assets | Comprehensive | |||
Loss | ||||
Income | ||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Cash & cash equivalents | - | 17,789,176 | - | 17,789,176 |
Balances with Central Bank of Sri Lanka | - | 31,028,270 | - | 31,028,270 |
Placements with banks | - | 7,251,305 | - | 7,251,305 |
Derivative financial instruments | 862,754 | - | - | 862,754 |
Financial assets recognised through profit or loss - measured at fair value | 11,130,230 | - | - | 11,130,230 |
Financial assets at amortised cost | ||||
- loans & advances | - | 689,377,504 | - | 689,377,504 |
- debt & other instruments | - | 156,293,495 | - | 156,293,495 |
Financial assets - fair value through other comprehensive income | - | - | 17,331,724 | 17,331,724 |
Other assets | - | 7,152,067 | - | 7,152,067 |
Total Financial Assets | 11,992,984 | 908,891,817 | 17,331,724 | 938,216,525 |
Fair value | ||||
Financial Liabilities | through Profit or | Amortised Cost | Total | |
Loss | ||||
Rs 000 | Rs 000 | Rs 000 | ||
Due to banks | - | 1,511,665 | 1,511,665 | |
Derivative financial instruments | 604,069 | - | 604,069 | |
Securities sold under repurchase agreements | - | 16,398,511 | 16,398,511 | |
Financial liabilities at amortised cost | ||||
- due to depositors | - | 717,250,492 | 717,250,492 | |
- due to other borrowers | - | 55,661,729 | 55,661,729 | |
- due to debt securities holders | - | 37,642,049 | 37,642,049 | |
Dividend payable | - | 88,898 | 88,898 | |
Other liabilities | - | 12,320,390 | 12,320,390 | |
Total Financial Liabilities | 604,069 | 840,873,734 | 841,477,803 |
15
ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS
Group - As at 30th June 2020
Fair value | Fair Value | |||
through Other | ||||
through Profit or | Amortised Cost | Total | ||
Financial Assets | Comprehensive | |||
Loss | ||||
Income | ||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Cash & cash equivalents | - | 29,403,142 | - | 29,403,142 |
Balances with Central Bank of Sri Lanka | - | 12,482,619 | - | 12,482,619 |
Placements with banks | - | 1,064,050 | - | 1,064,050 |
Reverse repurchase agreements | - | 19,212,555 | - | 19,212,555 |
Derivative financial instruments | 1,310,794 | - | - | 1,310,794 |
Financial assets recognised through profit or loss - measured at fair value | 14,550,670 | - | - | 14,550,670 |
Financial assets at amortised cost | ||||
- loans & advances | - | 744,153,936 | - | 744,153,936 |
- debt & other instruments | - | 166,853,252 | - | 166,853,252 |
Financial assets - fair value through other comprehensive income | - | - | 19,950,755 | 19,950,755 |
Other assets | - | 8,250,003 | - | 8,250,003 |
Total Financial Assets | 15,861,464 | 981,419,557 | 19,950,755 | 1,017,231,776 |
Fair value | ||||
Financial Liabilities | through Profit or | Amortised Cost | Total | |
Loss | ||||
Rs 000 | Rs 000 | Rs 000 | ||
Due to banks | - | 2,678,398 | 2,678,398 | |
Derivative financial instruments | 1,524,398 | - | 1,524,398 | |
Securities sold under repurchase agreements | - | 1,344,656 | 1,344,656 | |
Financial liabilities at amortised cost | ||||
- due to depositors | - | 800,740,281 | 800,740,281 | |
- due to other borrowers | - | 61,246,363 | 61,246,363 | |
- due to debt securities holders | - | 40,845,589 | 40,845,589 | |
Dividend payable | - | 247,518 | 247,518 | |
Other liabilities | - | 14,395,126 | 14,395,126 | |
Total Financial Liabilities | 1,524,398 | 921,497,931 | 923,022,329 | |
Group - As at 31st December 2019 (Audited) | ||||
Fair value | Fair Value | |||
through Other | ||||
through Profit or | Amortised Cost | Total | ||
Financial Assets | Comprehensive | |||
Loss | ||||
Income | ||||
Rs 000 | Rs 000 | Rs 000 | Rs 000 | |
Cash & cash equivalents | - | 17,977,598 | - | 17,977,598 |
Balances with Central Bank of Sri Lanka | - | 31,028,270 | - | 31,028,270 |
Placements with banks | - | 7,251,305 | - | 7,251,305 |
Reverse repurchase agreements | - | 2,304,392 | - | 2,304,392 |
Derivative financial instruments | 862,754 | - | - | 862,754 |
Financial assets recognised through profit or loss - measured at fair value | 11,130,230 | - | - | 11,130,230 |
Financial assets at amortised cost | ||||
- loans & advances | - | 719,046,634 | - | 719,046,634 |
- debt & other instruments | - | 156,308,796 | - | 156,308,796 |
Financial assets - fair value through other comprehensive income | - | - | 17,331,780 | 17,331,780 |
Other assets | - | 7,522,839 | - | 7,522,839 |
Total Financial Assets | 11,992,984 | 941,439,834 | 17,331,780 | 970,764,598 |
Fair value | ||||
Financial Liabilities | through Profit or | Amortised Cost | Total | |
Loss | ||||
Rs 000 | Rs 000 | Rs 000 | ||
Due to banks | - | 1,567,974 | 1,567,974 | |
Derivative financial instruments | 604,069 | - | 604,069 | |
Securities sold under repurchase agreements | - | 16,384,511 | 16,384,511 | |
Financial liabilities at amortised cost | ||||
- due to depositors | - | 730,189,642 | 730,189,642 | |
- due to other borrowers | - | 67,311,166 | 67,311,166 | |
- due to debt securities holders | - | 41,371,586 | 41,371,586 | |
Dividend payable | - | 88,898 | 88,898 | |
Other liabilities | - | 12,276,319 | 12,276,319 | |
Total Financial Liabilities | 604,069 | 869,190,096 | 869,794,165 |
16
DEBENTURE INFORMATION
- Market Values
Debentures - 2015/2020 | Highest (Rs) | Lowest (Rs) | Quarter End (Rs) | ||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
Fixed | - 9.90% | N/T | N/T | N/T | N/T | N/T | N/T |
Floating rate | N/T | N/T | N/T | N/T | N/T | N/T | |
N/T - Not Traded | |||||||
Debentures - 2016/2021 | Highest (Rs) | Lowest (Rs) | Quarter End (Rs) | ||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
Fixed | - 12.75% | 101.99 | 100.00 | 101.33 | 100.00 | 101.33 | 100.00 |
Floating rate | N/T | 97.50 | N/T | 97.50 | N/T | 97.50 | |
N/T - Not Traded | |||||||
Debentures - 2017/2022 | Highest (Rs) | Lowest (Rs) | Quarter End (Rs) | ||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
Fixed | - 12.50% | N/T | N/T | N/T | N/T | N/T | N/T |
N/T - Not Traded | |||||||
Debentures - 2018/2023 | Highest (Rs) | Lowest (Rs) | Quarter End (Rs) | ||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
Fixed | - 12.50% | N/T | 99.51 | N/T | 99.51 | N/T | 99.51 |
N/T - Not Traded | |||||||
Debentures - 2019/2024 | Highest (Rs) | Lowest (Rs) | Quarter End (Rs) | ||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
Fixed | - 13.90% | 114.32 | N/T | 114.32 | N/T | 114.32 | N/T |
N/T - Not Traded |
- Interest Rates
2020 | 2019 | |||||
Debentures - 2015/2020 | Coupon rate | Effective rate | Coupon rate | Effective | ||
rate | ||||||
Fixed | - 9.90% | 9.90% | 10.15% | 9.90% | 10.15% | |
Floating rate | Note 01 | |||||
2020 | 2019 | |||||
Debentures - 2016/2021 | Coupon rate | Effective rate | Coupon rate | Effective | ||
rate | ||||||
Fixed | - 12.75% | 12.75% | 12.75% | 12.75% | 12.75% | |
Floating rate | Note 01 | |||||
2020 | 2019 | |||||
Debentures - 2017/2022 | Coupon rate | Effective rate | Coupon rate | Effective | ||
rate | ||||||
Fixed | - 12.50% | 12.50% | 12.89% | 12.50% | 12.89% | |
2020 | 2019 | |||||
Debentures - 2018/2023 | Coupon rate | Effective rate | Coupon rate | Effective | ||
rate | ||||||
Fixed | - 12.50% | 12.50% | 12.89% | 12.50% | 12.89% | |
2020 | 2019 | |||||
Debentures - 2019/2024 | Coupon rate | Effective rate | Coupon rate | Effective | ||
rate | ||||||
Fixed | - 13.90% | 13.90% | 13.90% | 13.90% | 13.90% |
Note 01
Debentures - 2015/2020
Floating rate is equivalent to the six month net treasury bill rate plus 1.25 % p.a. payable semi annually.
Debentures - 2016/2021
Floating rate is equivalent to the six month gross treasury bill rate plus 1.00 % p.a. payable semi annually.
17
DEBENTURE INFORMATION Cont ..
(c) | Interest Rate of Comparable Government Securities | |||||||||
2020 | 2019 | |||||||||
3 Month Treasury Bill | 5.08% | 8.24% | ||||||||
6 Month Treasury Bill | 5.22% | 8.49% | ||||||||
5 Year Treasury Bond | 6.61% | 9.83% | ||||||||
(d) | Current Yield & Yield to maturity | |||||||||
Fixed | Floating | |||||||||
Debentures - 2015/2020 | 9.90% | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||
Current yield | N/T | N/T | N/T | N/T | ||||||
Yield to maturity of last trade | N/T | N/T | N/T | N/T | ||||||
N/T - Not Traded | ||||||||||
Fixed | Floating | |||||||||
Debentures - 2016/2021 | 12.75% | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||
Current yield | 12.58% | 12.75% | N/T | 11.60% | ||||||
Yield to maturity of last trade | 11.26% | 12.75% | N/T | 12.37% | ||||||
N/T - Not Traded | ||||||||||
Fixed | ||||||||||
Debentures - 2017/2022 | 12.50% | |||||||||
2020 | 2019 | |||||||||
Current yield | N/T | N/T | ||||||||
Yield to maturity of last trade | N/T | N/T | ||||||||
N/T - Not Traded | ||||||||||
Fixed | ||||||||||
Debentures - 2018/2023 | 12.50% | |||||||||
2020 | 2019 | |||||||||
Current yield | N/T | 12.56% | ||||||||
Yield to maturity of last trade | N/T | 12.65% | ||||||||
N/T - Not Traded | ||||||||||
Fixed | ||||||||||
Debentures - 2019/2024 | 13.90% | |||||||||
2020 | 2019 | |||||||||
Current yield | 12.16% | N/T | ||||||||
Yield to maturity of last trade | 9.13% | N/T | ||||||||
N/T - Not Traded | ||||||||||
(e) | Ratios - Bank | |||||||||
30.06.2020 | 31.12.2019 | |||||||||
Debt to Equity Ratio (%) | 49.5% | 61.5% | ||||||||
Interest Cover (Times) | 3.7 | 4.9 | ||||||||
Quick Asset Ratio (%) (as per CBSL Return) | 80.7% | 77.7% | ||||||||
18 |
SELECTED PERFORMANCE INDICATORS (AS PER REGULATORY REPORTING)
Item | As At | As At | As At | As At |
30.06.2020 | 31.12.2019 | 30.06.2020 | 31.12.2019 | |
(Audited) | (Audited) | |||
Bank | Group | |||
Regulatory Capital (Rs 000) | ||||
Common Equity Tier 1 Capital | 92,049,303 | 96,794,652 | 96,533,413 | 101,088,754 |
Tier 1 Capital | 92,049,303 | 96,794,652 | 96,533,413 | 101,088,754 |
Total Capital | 115,994,607 | 123,364,882 | 120,638,415 | 127,814,196 |
Regulatory Capital Ratios (%) | ||||
Common Equity Tier 1 Capital Ratio | 13.30 | 14.22 | 13.16 | 14.05 |
(Minimum Requirement: 2020 - 6.5%, 2019 - 7.0%) | ||||
Tier 1 Capital Ratio | 13.30 | 14.22 | 13.16 | 14.05 |
(Minimum Requirement: 2020 - 8.0%, 2019 - 8.5%) | ||||
Total Capital Ratio | 16.77 | 18.12 | 16.44 | 17.76 |
(Minimum Requirement: 2020 - 12.0%, 2019 - 12.5%) | ||||
Leverage Ratio % (Minimum Requirement - 3%) | 7.42 | 8.12 | 7.54 | 8.24 |
As At | As At | |||
30.06.2020 | 31.12.2019 | |||
Bank | ||||
Assets Quality (Quality of Loan Portfolio) | ||||
Gross Non - Performing Advances Ratio, % (Net of Interest in Suspense) | 7.03 | 6.37 | ||
Net Non - Performing Advances Ratio, % (Net of Interest in Suspense and | ||||
Provision) * | 4.43 | 4.53 | ||
Profitability | ||||
Interest Margin, % | 3.57 | 4.46 | ||
Return on Assets (Before Tax), % | 1.09 | 1.66 | ||
Return on Equity (After Tax), % | 7.56 | 11.78 | ||
Regulatory Liquidity | ||||
Statutory Liquid Assets (Rs 000) | 249,464,527 | 181,901,984 | ||
Statutory Liquid Assets Ratio (Minimum Requirement - 20%) | ||||
Domestic Banking Unit (%) | 28.12 | 21.51 | ||
Off-Shore Banking Unit (%) | 33.88 | 26.88 | ||
Total Stock of High-Quality Liquid Assets (Rs 000) | 134,450,085 | 106,699,496 | ||
Liquidity Coverage Ratio (%) - Rupee | ||||
(Minimum Requirement: 2020 - 90%, 2019 - 100%) | 251.15 | 177.29 | ||
Liquidity Coverage Ratio (%) - All Currency | ||||
(Minimum Requirement: 2020 - 90%, 2019 - 100%) | 127.11 | 149.17 | ||
Net Stable Funding Ratio (%) | ||||
(Minimum Requirement: 2020 - 90%, 2019 - 100%) | 127.68 | 126.80 |
* Net Non-performing Advances Ratio is calculated based on the CBSL requirement after deducting CBSL provisions.
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Sampath Bank plc published this content on 12 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 15:22:03 UTC