10 Sampath Bank
BOARD OF DIRECTORS
I W Senanayake
G L H Premaratne
1 Sunil G Wijesinha
2 Mohan A Abeynaike
3 Denzil J Gunaratne
4 Dr Saman Kelegama
5 Lakshman J K Hettiaratchi
6 Prasantha Lal De Alwis
7 Dhammika Perera
8 Aravinda Perera
9 Ranjith Samaranayake
10 Deepal Sooriyaarachchi
Securing number 10 in the Business Today TOP TWENTY, Sampath Bank has witnessed a remarkable growth and performance in the recently concluded financial year. The dawn of a new era in Sri Lanka spurred the Bank to transcend traditional boundaries and make a significant mark in the banking sector.
Backed by a firm set of principles and standards, Sampath Bank set a record in the banking industry by its strong and powerful branch expansion, opening 40 new branches within the year.
Reflecting the favourable economic environment in the country, the bank recorded a net profit of Rs 3.3 billion, with an outstanding increase of 57.4 percent in its Profit After Tax. Following the Nation's lead to achieve greater heights, Sampath Bank posted a noteworthy high growth of 30.3 percent in bank credit during 2010/11, a rate that surpassed the industry growth rate. This achievement was attributed to its provision of customer-specific credit solutions for corporate and retail customers and competitive pricing. In addition, with a view to enhancing and developing the lives of people in the North and East, rates on pawning advances were reduced from 16 percent to 14 percent in the year under review.
Maintaining this momentum and exceeding the industry growth, the Bank also posted a high growth in deposits amounting to 19.4 percent. Displaying its efficiency in maintaining a balance between aggressive credit expansion and management of associated risks, the bank achieved a reduction in Non Performing Loans (NPL) in absolute terms by 32.5 percent. A decline in the NPL ratio from 7.6 percent to 3.9 percent was also achieved.
Evidence of the financial stability maintained in the Bank was seen in its ability to achieve a Tier I Capital Adequacy Ratio (CAR) of 10.7 percent and a Tier I + II CAR of 12.9 percent, surpassing the statutory requirements of five percent and ten percent.
Sampath Bank recorded one of the highest Net Interest Margins in the industry with a rate of five percent. Return on Assets posted 1.9 percent while Return on Equity recorded 24.6 percent, joining other achievements in exceeding industry rates.
Following a capital restructure approved by the Board of Directors, the Bank increased the value of shareholders' investments with two share sub-divisions, thereby increasing the number of shares by 121 percent.
Sampath Bank is on track to face a new phase of growth in the years ahead. With the recent financial year reflecting landmark achievements in the company's history, Sampath Bank aims to strengthen its performance and explore lending opportunities in housing, infrastructure, agriculture and tourism.