Despite the drastic economic downturn, Sampath Bank recorded a profit before tax (PBT) of Rs 6.99 bn and a profit after tax (PAT) of Rs. 5.09 bn for the nine months ended September 30, 2020. This is a decline of 33.1% in PBT and 22% in PAT compared to the corresponding period in 2019. The Bank recorded PBT of Rs 1.66 bn and PAT Rs. 1.12 bn during the third quarter from July 1, 2020 to September 30, 2020, a drop of 64.2% and 53.8% respectively compared to Q3 of2019.
PBT and PAT of the Group for the first nine months of the year stood at Rs 7.31 bn and Rs 5.21 bn respectively. This is a reduction of 32.6% in PBT and 23% in PA against the achievements of the corresponding period.
The spread of the Covid-19 pandemic and related containment measures have resulted in a significant downturn in the global and local economies.
The Central Bank of Sri Lanka continued to implement monetary easing measures including several policy rate cut to stimulate an economic recovery. These measures, together with relief measures granted to customers under the moratorium schemes by charging lower interest rates below the market rates significantly affected the Bank’s Net Interest Income (NII) in the nine months ended September 30, 2020. Sampath Bank’s NII declined by 15.5% to Rs. 25.99 bn for the first nine months of the year compared to the corresponding period in 2019.