Sampath Bank

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Sampath Bank PLC
Public limited company
Traded as CSE: SAMP.N0000
Industry Finance
Founded 1986
Headquarters Colombo 02, Sri Lanka
Area served
 Sri Lanka
Products Banking, financial and related services
Slogan We Present Your Future
Website www.sampath.lk

Sampath Bank (Sampath Bank PLC) is a licensed Commercial Bank incorporated in Sri Lanka in 1986 with 224 branches and 373 ATMs island wide. It has won the "Bank of the Year" award by "The Banker" of Financial Times Limited – London, for the second consecutive year and the "National Business Excellence Awards 2010".[citation needed] It has become the third largest private sector bank in Sri Lanka with Rs. 125,960,000 deposits as year ended 31 December 2009.

History

The bank was originally incorporated as "Investment and Credit Bank Limited" in 1987 whilst Mr. N U Jayawardhana became the Chairman of the bank. The bank became popularly known as "Sampath". In 1988, Sampath Bank start to operate multi-point network of automated teller machines (ATMs) for the first time in the country, and the service became popular as "Sampath Electronic Teller" or "SET". Then, with the popularity of ATM banking introduced MasterCard (in 1989), PBU (Personal Banking Unit) and Uni-Banking System. The bank was the first to introduced "Debit Card" in South Asia in 1997 and was the first in Sri Lanka to issue a debit card instantly at the time of opening an account. The first ever Cheque Imaging & Truncating (CIT) site in Sri Lanka was launched by Sampath Bank in 2004. Since 2009, the bank is the third largest private sector bank in Sri Lanka in terms of total assets. Recently[when?] Sampath bank won the "Bank of the Year" award by "The Banker" of Financial Times Limited – London, for the second consecutive year and the "National Business Excellence Awards 2010".

Recent Financial Performance

Sampath Bank (SAMP) reported a net profit of Rs.1,314mn (up 48% YoY) in 4Q2012 resulting in its FY2012 net profit rising 26% YoY to Rs.5,212mn. Net Interest Income rose 37% YoY to Rs.3,405mn for 4Q2012 (up 29% YoY to Rs.11,965mn in FY2012). Reported Net Interest Margin (NIM) rose to 4.19% in FY2012 from 4.13% in FY2011 (and up from 4.10% in 1-3Q2012). Non Interest Income (Non-II) fell 21% YoY to Rs.959mn in 4Q2012 (however up 17% YoY to Rs.5,664mn in FY2012). Within Non-II, forex income fell 99% YoY to Rs.4mn in 4Q2012 amidst a ~3% appreciation in LKR during 4Q2012). Consequently, forex income rose 159% YoY to Rs.2,170mn in FY2012 amidst an 11.7% depreciation in LKR during FY2012 largely on account of FCBU reserve translation gains. Non Interest Expenses (NIE) rose 4% YoY to Rs.2,470mn in 4Q2012 resulting in SAMP’s 2012 NIE rising 15% YoY to Rs.9,443mn. With growth in Net Income outpacing growth in NIE, SAMP’s Cost to Income Ratio (CIR: excluding financial value added tax) eased to 56.6% in 4Q2012 and 53.6% in FY2012 from 63.0% in 4Q2011 and 58.4% in FY2011 (and 65.3% in 3Q2012). SAMP’s specific loan loss provision cover ratio (PCR) fell to 66.6% as at 31 Dec 2012 from 69.0% as at 31 Dec 2011 despite an improvement in its Gross NPA ratio on account of relatively higher loan loss provision reversals (PR: for 4Q2012 amounted to Rs.109mn vs.Rs.141mn in 4Q2011). SAMP’s gross NPAs declined to 2.07% as at 31 Dec 2012 from 2.27% as at 30 Sep 2012 (and 2.65% as at 31 Dec 2011). SAMP’s Effective Tax Rate (ETR: including financial value added taxes) declined to 33.6% in 4Q2012 and 38.8% in FY2012 from 42.6% in 4Q2011 and 40.1% in FY2011. Gross Loans grew 2.2% QoQ and 22.9% in FY2012 to Rs.218bn as at 31 Dec 2012 Deposits grew 5.8% QoQ and 24.0% in FY2012 to Rs.237mn as at 31 Dec 2012 Within deposits, Current And Savings Account (CASA) ratio fell to 34.6% as at 31 Dec 2012 from 35.4% as at 30 Sep 2012 (and 40.8% as at 31 Dec 2011) SAMP’s Tier I Capital Adequacy Ratio (CAR) and Tier I + II CAR stood above the minimum required levels at 10.5% and 12.4% as at 31 Dec 2012 respectively. [1]

Awards

  • 1996 : "Best Commercial Bank" of the Year 1996 by "Asiamoney"
  • 1997 : "The Best Small-Cap Bank in South Asia" by "Asia Banking Digest"
  • 1997 : "Best Commercial Bank" of the Year 1997 by "Asiamoney"
  • 1998 : "Best Commercial Bank" of the year 1998 by "Asiamoney"
  • 1998 : "Outstanding New Business Venture Project in 1998" by "Asia Banking Digest"
  • 1999 : Listed under "300 Best Small Companies in the World" by "Forbes Global"
  • 2000 : "Bank of The Year 2000" by "The Banker" (First occasion to award to a Sri Lankan bank by "Financial Times Group")
  • 2004 : "Best HR Practice in the Service Category" at National HRM Awards 2004
  • 2005 : "Runner-up award in Best Presented Accounts" by “South Asian Federation of Accountants (SAFS)
  • 2005 : "Awards for Excellence in Annual Reports 2004" by “Institute of Charted Accounts Sri Lanka”
  • 2005 : "Best Corporate Citizen"
  • 2006 : "Best Economic Performance for the Year 2005"
  • 2005 : "Best Financial Application" by "Institute of Charted Accounts Sri Lanka"
  • 2005 : "Gold Award in Financial Category" by "Institute of Charted Accounts Sri Lanka"
  • 2005 : "Second Runner-up in Banking Sector for Business Excellence" by National Chamber of Commerce of Sri Lanka
  • 2008 : Placed among "The Top Ten Best Corporate Citizens" in Sri Lanka for the 4th consecutive year by "The Ceylon Chamber of Commerce"
  • 2008 : "Excellence in Best Performance Management Practices" by National Chamber of Commerce of Sri Lanka at "National Business Excellence Awards"
  • 2008 : "Brand Leadership Award" by "Asia Brand Congress, Mumbai, India"
  • 2009 : “Silver Award for the Overall Competition for National Business Excellence"
  • 2009 : Winner in Excellence in Business & Financial Performance Award
  • 2009 : "Bank of The Year 2009" by "The Banker of Financial Times –London"[1]
  • 2009 : Corporate Responsibility award for 2009 (Best Corporate Citizen 2009)
  • 2010 : "Bank of the Year 2010" by "The Banker of Financial Times – London"[2]
  • 2011 : ARC Awards - Sampath Bank Annual Report 2010 has won a "Gold Award" under the "Banks National" category at the 25 th "ARC Awards Ceremony" held in New York.[3]
  • 2012 : World Finance Award - Sampath Bank has earned an accolade by being awarded the Best Banking Group in Sri Lanka 2012, by the prestigious World Finance Magazine[4]

Growth

The first office of Sampath bank located at Wijewardhana Mawatha, Colombo 10 and later in 1997, it was moved to Sir James Peiris Mawatha, Colombo 02, Sri Lanka. At the end of the first year, the staff had 94 members.

The first ATM operated by the bank was installed in 1986 and at the end of year 2007 it crossed the 150 mark and now bank operating over 220 ATMs island wide.

In 1996, bank introduced the "Tele-banking" facility. This led to re-engineering of its IT induced banking technology in 1998 and "SampathNet" – Internet Banking facility launched on July 2000.

Now bank operates with total of 224 branches including 12 super branches and 360 ATMs including 8 off-site ATMs.

Technology

Sampath Bank was the first bank in Sri Lanka to operate with fully computerized database & technologies since its birth in 1986.

Sampath bank was the first to introduce "Automated Teller Machines" to Sri Lanka branded as “SET”, MasterCard, Personal Banking Unit Facility, Uni Banking System & Debit Cards (Initially with Cirrus and Maestro and Visa). After the massive re-engineering work done by the bank for its IT induced banking technology, the bank was able to launch Internet Banking, Internet Payment Gateways and mobile banking services which are on-line 24x7.

The Bank become the first in Sri Lanka to introduce "One Day Clearing" for all cheques drawn on any Sampath Bank branch, collected by any Commercial Bank in the islan & presented through Sri Lanka Automated Clearing House (SLACH).

The first ever Cheque Imagine & Truncating (CIT) site in Sri Lanka was launched by the bank in October 2004.

Sampath Bank won a Gold and Merit Award at the National Best Quality Software Awards 2008 for the in-house category for developing the "Credit Approval System" (CAS) and "Electronic Money Transfer" (EMTS) application.

It also honored at the National Science and Technology Awards 2008 for the category of "Local Developed New Technologies" which have resulted in a successfully Marketed Product/Service for the product "Sampath eRemittance System".

Introduced the online real time Cheque Deposit ATMs - a first in South Asia.

Powered the nation's largest ATM network (iConnect) – Access enabled to nearly 1,500 ATMs island wide.

Financial Highlights

At the end of 2011[5]

4.1bn GROUP PROFIT (18.5% Growth AFTER TAX)

34.9% GROWTH IN ADVANCES (Surpassed industry growth of 31.9%)

27.3% GROWTH IN DEPOSITS (Surpassed industry growth of 18.7%)

32.2% GROWTH IN ASSETS (Surpassed industry growth of 19.5%)

External links

Award for E-Content Application : Lanka Business Today Report
Best Corporate Citizen 2009 : Asian Tribune Report
Bank Of the Year: Invest Now Report

Sampath Bank Expansion : Report by Lanka Business Report

The Banker: Report

References

  1. ↑ Sri Lanka Sampath Bank wins top award. LBO. http://www.lankabusinessonline.com/fullstory.php?nid=790737201
  2. ↑ http://www.srilankamirror.com/old/english/business/39-business/734-sampath-bank-wins-banker-of-2010-award-for-second-time-
  3. ↑ http://www.mercommawards.com/arc%20pages/Winner%20pages/2011/overall.htm#banksNational
  4. ↑ http://www.ft.lk/2012/07/05/sampath-wins-world-finances-best-banking-group-in-sri-lanka-award/
  5. ↑ http://www.sampath.lk/ar2011.pdf
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