Financial Performance
Sampath Bank recorded a Profit Before Tax (PBT) of Rs 24.4 Bn and a Profit After Tax (PAT) of Rs 14.7 Bn for the first half of 2025, marking a robust year-on-year growth of 32% across both metrics compared to the same period in 2024. The Sampath Group reported a PBT of Rs 26.0 Bn and a PAT of Rs 15.6 Bn, reflecting a year-on-year growth of 32% at both PBT and PAT levels.
Fund Based Income
During the six-month period ended 30th June 2025, Sampath Bank reported total interest income of Rs 89.4 Bn, a 6% year-on-year decline primarily driven by the downward trend in the Average Weighted Prime Lending Rate (AWPLR) and reduced yields from government securities. The Bank’s interest expenses recorded a corresponding decline of 6% to Rs 50.8 Bn for the period. These resulted in the Bank’s Net Interest Income (NII) declining by 6% year-on-year to Rs 38.6 Bn and the Net Interest Margin (NIM) declining by 66 basis points, from 4.90% on 31st December 2024 to 4.24% as at 30th June 2025.
Non-Fund Based Income
During the first half of 2025, the Bank reported total non-fund based income of Rs 15.9 Bn, marking a substantial year-on-year growth of 122%.
Net fee and commission income increased by 12% against 1H 2024, driven by higher contributions across multiple channels, including credit, card, trade, operations, and electronic banking services. The Bank recorded a total exchange gain of Rs 2.4 Bn during the first half of 2025, reflecting a significant improvement compared to the exchange loss of Rs 2.7 Bn in the first half of the previous year. This gain was primarily attributable to the depreciation of LKR against USD by Rs 6.58.
Impairment Charge
The Bank reported a total impairment charge of Rs 1.4 Bn for the period under review, a 78% decline compared to the previous period. This included a charge of Rs 1.4 Bn for loans and advances (1H 2024: Rs 3.7 Bn), a charge of Rs 0.6 Bn for other financial assets (1H 2024: Rs 1.0 Bn), and a reversal of Rs 0.6 Bn for credit-related commitments and contingencies (1H 2024: charge of Rs 1.5 Bn).
Impairment charge on loans and advances
The Bank reported a 62% year-on-year decline in impairment charges on loans and advances during the first half of 2025 even with a substantial increase in its loan portfolio. This decline in impairment was due to the improvement of credit quality across its customer base fuelled by stronger macro-economic fundamentals of the economy.
The Bank conducted a comprehensive review of its ISL customers, allocating prudent provisions in its Financial Statements tailored to each customer’s unique credit risk profile. Reinforcing its proactive provisioning strategy, the Bank continued its prudent provisioning for collective impairment, ensuring that resilient buffers are maintained to absorb any potential future credit risks. The fundamental impairment models used for collective provisioning remained unchanged from 2024.
Impairment charge on other financial instruments
An impairment charge of Rs 0.6 Bn was recognised against other financial instruments during the reporting period, primarily due to newly acquired investments.
Operating Expenses
During the reporting period, the Bank’s operating expenses increased by 20% compared to the first half of 2024. This increase was primarily driven by higher personnel costs due to annual salary revisions, along with a rise in other operating expenses. As the increase in expenses outpaced the improvement in operating income, the Bank’s cost-to-income ratio (CIR) deteriorated by 240 basis points, rising to 39.9% in the first half of 2025, from 37.5% in the same period of the previous year.
Taxation
Driven by the growth in taxable income, the Bank’s total tax charge for the period increased by 29%, rising from Rs 12.9 Bn in 1H 2024 to Rs 16.7 Bn in 1H 2025.
Key Ratios
As of 30th June 2025, the Bank’s Return on Average Shareholders’ Equity (after tax) stood at 17.94%, while its Return on Average Assets (before tax) was 2.67%. These figures compare to 17.74% and 2.84%, respectively, reported at the end of 2024.
Capital and Liquidity
During the period under review, Sampath Bank maintained capital ratios well above the minimum regulatory thresholds, underscoring its continued financial resilience. As of 30th June 2025, the Bank’s Common Equity Tier 1 (CET 1), Tier 1, and Total Capital ratios stood at 15.64%, 15.64%, and 19.16%, respectively, compared to 16.75%, 16.75%, and 19.38% reported at the end of 2024.
Following Sampath Bank’s designation as a Domestic Systemically Important Bank (D-SIB), effective 17th April 2025, the minimum capital requirements were raised by 1% across all tiers. The Bank comfortably met these enhanced requirements as of 30th June 2025.
Liquidity levels remained robust and well above regulatory benchmarks. The All-Currency Liquidity Coverage Ratio (LCR) was recorded at 312.1%, and the Net Stable Funding Ratio (NSFR) stood at 198.6%, compared to 307.4% and 198.7%, respectively, as at year-end 2024.
Assets
Sampath Bank’s total assets grew by 8.4% during the first half of 2025, reflecting an annualized growth rate of 17.0%. Total assets reached Rs 1.93 Tn as of 30th June 2025, up from Rs 1.78 Tn reported at year-end 2024. This growth was primarily driven by the expansion of the Bank’s loan portfolio and increased investments.
As of 30th June 2025, Sampath Bank’s gross loan portfolio surpassed Rs 1 Tn for the first time in its history. The portfolio grew by Rs 68 Bn, increasing from Rs 964.6 Bn at the end of 2024 to Rs 1,032.9 Bn, primarily driven by growth in LKR-denominated loans.
On the investment front, the Bank expanded its holdings of LKR-denominated Treasury bonds by Rs 30 Bn. Foreign currency asset exposure was also strengthened, with investments in US Treasury Bills and Sri Lanka International Sovereign Bonds increasing by Rs 28 Bn and Rs 10 Bn, respectively. Furthermore, placements with other banks rose by Rs 22 Bn, collectively supporting the continued growth of the Bank’s asset base.
Notably, the Sampath Group’s total assets exceeded the Rs 2 Tn milestone for the first time in its history.
Liabilities
As of 30th June 2025, Sampath Bank’s total liabilities increased to Rs 1.76 Tn, reflecting a 9.3% rise since year-end 2024 and an annualized growth rate of 18.8%. This growth was primarily driven by a significant expansion in the deposit base, which rose by Rs 144.3 Bn from Rs 1,469.2 Bn at the end of 2024 to Rs 1,613.6 Bn as of the reporting date. The increase was largely attributed to LKR-denominated deposits, which grew by Rs 114.2 Bn, while foreign currency deposits contributed an additional Rs 30.2 Bn.
The Bank also reported an improvement in its low-cost deposit mix, with the CASA base expanding by Rs 68.3 Bn during the first half of 2025. As a result, the CASA ratio increased to 35.2% asat 30th June 2025, compared to 34.0% at the end of 2024.
Commitment to Stakeholder Well-being
Sampath Bank continues to support Sri Lanka’s economic recovery by helping customers overcome financial challenges through its dedicated Business Revival Unit. This program provides tailored financial solutions to businesses in distress, enabling them to rebuild and grow. Through this initiative, the Bank has helped improve customer creditworthiness and contributed to overall financial stability and resilience in the economy.
Sampath Bank demonstrated exceptional ESG leadership through a comprehensive suite of sustainability initiatives launched in conjunction with World Environment Day 2025. Key highlights included the commencement of a five-year project aimed to enhance the conservation and sustainable use of the coral reefs and other coastal ecosystems in the Erumaitivu-Kakkativu seascape in Kilinochchi District in collaboration with the IUCN (International Union for Conservation of Nature) Sri Lanka; the launch of the “Madhu Sampatha” floating market, aimed at reducing plastic waste and empowering local artisans; and a mangrove regeneration program in Karamba, Puttlam to safeguard blue carbon ecosystems.
The Bank also continued its longstanding “Wewata Jeewayak” irrigation revitalization initiative and, in 2Q 2025, introduced a women startup program to foster inclusive economic growth. ESG-linked credit screening processes were further enhanced to align with global best practices, strengthening both governance and sustainable value creation.
Reinforcing its commitment to climate transparency and responsible reporting, Sampath Bank is progressively aligning its ESG disclosures with internationally recognized frameworks, including GRI, SLFRS S1 & S2, SASB, and the UN Global Compact. The Bank also became a signatory to the Partnership for Carbon Accounting Financials (PCAF). These efforts collectively solidified Sampath Bank’s position as a national leader in ESG strategy, culminating in its recognition as the “Best Bank for ESG in Sri Lanka” at the Euromoney Awards 2025.