Sampath bank delivers solid December with Rs. 260bn in new loans

Harsha Amarasekera - Chairman

Sanjaya Gunawardana - CEO

Sampath Bank PLC reported a solid financial performance for the three months ended in December 2025, driven by robust growth in loans, fee and commission incomes, trading gains, and provision reversals. 

The expansion in loans and advances signals the bank’s growing confidence in the debt serviceability of its borrowers amid a recovering economy.

The bank reported a net interest income of Rs. 22.15 billion for the October–December quarter, up 8 percent from the same period in 2024. This was supported by loan book growth and the effective management of asset and liability pricing in a declining interest rate environment. The bank granted loans worth Rs. 259.06 billion in 2025, reflecting a growth of 26.9 percent. Of this total, Rs. 76.61 billion was disbursed during the December quarter alone. Deposits grew by 11.8 percent or Rs. 171.19 billion, with Rs. 39.83 billion mobilized during the December quarter.

The net interest margin, although narrowed, was maintained at 4.11 percent, down from 4.90 percent at the beginning of the year.

Despite the growth in loans, the bank reversed provisions worth Rs. 3.16 billion for the quarter, a significant increase from Rs. 402.08 million in the corresponding period of the previous year.

The bank noted that the number of customers requesting moratoriums due to flood damage in December was considerably lower than the requests seen during the pandemic. Sampath Bank recognized an impairment charge of Rs. 1.4 billion for the full year, stating it was primarily attributable to the purchase of short-tenor PDI bonds.

The bank reported a slightly lower bottom line due to the reversal of the full provision made against Sri Lanka-issued International Sovereign Bonds following the completion of the debt restructuring process.

Under these circumstances, the bank reported earnings of Rs. 8.03 a share or Rs. 9.42 billion for the December quarter, compared to Rs. 8.20 a share or Rs. 9.61 billion in the year-earlier period.

For the full year, the bank reported earnings of Rs. 27.77 a share or Rs. 32.57 billion, reflecting a 13 percent increase.

The bank also declared an all-cash dividend of Rs. 10.30 a share. The bank’s share ended Rs. 1.00 or 0.62 percent higher at Rs. 163.25 on Friday.