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Sampath Bank on track to be ‘attractively’ valued by investors in 2025

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Lending portfolio expected to grow by 6.5% in 2024

Significant decline in impairment charges forecasted for the current year

By Sanath Nanayakkare

First Capital Research says that it expects Sampath Bank’s lending portfolio to grow by 6.5% in 2024 followed by a 10.0% growth in 2025 as the researchers expect the GDP to record a positive turnaround of 2%-3% in 2024.In addition to that, the strong capital buffer of the Bank was attributed to the expected growth in its lending portfolio.

These key indicators hence signal a better value proposition from the Bank for its shareholders going forward.

“Sampath Bank recorded a robust 26.0%YoY increase in net earnings, reaching LKR 3.8Bn, driven by a 14.7%YoY growth in Net Interest Income (NII) and a notable reduction in impairment charges. However, a surge in the effective tax rate to 59.7% led to a QoQ decline in net earnings by 27.0%. Reflecting the economic recovery, the loan book marginally expanded by 2.6%QoQ to LKR 807.5Bn, while the deposit base improved by 5.2%QoQ to LKR 1.3Tn, with the CASA base reaching 33.6%,” First Capital says.

“Furthermore, we anticipate a projected 53.6%YoY decline in impairment charges in 2024, which is expected to drive a profit growth of 14.6%YoY to LKR 20.5Bn in 2024, followed by a growth of 12.0%YoY to LKR 23.0Bn in 2025. Given the positive sector outlook and potential re-rating, Sampath is forecasted to trade at 1.0x PBV, resulting in a fair value of LKR 135.0 for 2025, representing a significant 72.4% upside from the current market price of LKR 78.3,” the research group predicts.

“NII expansion and impairment contraction propel strong YoY earnings growth. Sampath’s net earnings rose by 26.0%YoY to LKR 3.8Bn in 1Q2024, driven by a notable growth in NII by 14.7%YoY and a significant reduction in impairment charges by 35.4%YoY. However, a spike in the effective tax rate to 59.7% led to a QoQ decline in net earnings by 27.0%. The growth in NII was primarily due to a reduction in interest expense (-12.1%YoY), outpacing the decline in interest income (-2.4%YoY).”

“However, NIMs contracted to 5.24% as of 31st Mar 2024, with an expected further decline to 4.03% in 2024. Net fee and commission income saw a 17.3%YoY decline to LKR 4.6Bn due to reduced income from trade-related activities, including lower commission rates for import-related transactions, decreased trade volumes, and LKR appreciation against the USD (c.7.0%YTD). However, fees generated from credit, electronic channels, cards, and remittance-related activities showed growth during the quarter. Moreover, Sampath reported a net trading loss of LKR 4.5Bn in 1Q2024, contrasting with a gain of LKR 1.7Bn in 1Q2023, primarily due to revaluation losses on forward exchange contracts. However, realized exchange gains of LKR 0.6Bn offset the turnaround, compared to the loss of LKR 4.2Bn recorded in 1Q2023.”

“Sampath’s loans and advances exhibited conservative growth QoQ, with a modest uptick of 2.6% to LKR 807.5Bn driven by a 2.8%QoQ expansion in LKR-denominated loans, while foreign currency denominated loans experienced a slight decline of -1.6%QoQ, amidst LKR appreciation against the USD during the period.

“With an uptick in Demand and Savings deposits on a QoQ basis, the bank’s CASA ratio improved to 33.6% during 1Q2024. We project the CASA ratio to normalize and further enhance to 40.0% from 2024 to 2026, positioning the bank with a cost effective source of funds compared to peers, thus widening the interest spread and bolstering its competitive edge.” First Capital Research’s projections indicate.



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Business, economic heavyweights converge in Colombo

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Senior business leaders, economists and international development experts, alongside the Prime Minister of Sri Lanka, will headline the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12 and 13 October at the Shangri-La Colombo.

The Summit will open with a keynote address by T. Krishnakumar, Chief Executive Officer, Reliance Consumer Products Ltd, who brings more than four decades of experience in the consumer brands and FMCG sectors. Having previously served as President of Coca-Cola India and Southwest Asia, with extensive experience in building businesses and driving growth across emerging markets, Krishnakumar, more popularly known as Kk, now leads Reliance Consumer Products as it expands across categories and builds new customer, partnership and market opportunities.

Day 2 will bring together four international perspectives across discussions on economic resilience, regional connectivity, sector growth and digital transformation.

Lilia Aleksanyan, Senior Country Economist for Sri Lanka at the Asian Development Bank, will open the day’s discussions with a focus on Sri Lanka’s economic resilience. Her work covers the country’s macroeconomic outlook, policy advice and macro-fiscal and financial-sector reform. Her international policy experience also includes roles at the French Ministry of Finance and the French Central Bank.

The Summit will then turn to Sri Lanka’s connections with regional markets, with P. D. Singh, Chief Executive Officer, India & South Asia, Standard Chartered Bank, delivering the keynote for the session on trade corridors and value chains. Singh counts close to three decades of experience in banking and finance, with senior leadership roles spanning Standard Chartered, JPMorgan Chase Bank and HSBC.

The Sector Deep Dives will bring international perspectives to discussions on healthcare and energy.

Tushar Shroff, Chief Financial Officer, Zydus Lifesciences Ltd, will deliver the keynote for the healthcare discussion, drawing on more than three decades of experience in corporate finance, strategic investment and financial transformation. His career spans senior finance and leadership roles with ABB, Piramal Healthcare, Intas Pharmaceuticals and Vedanta Group, giving him a broad perspective on the business and investment decisions shaping the healthcare sector.

For the energy-focused deep dive, Edore Onomakpome, Regional Infrastructure Industry Manager for Bangladesh, Sri Lanka and Nepal at the International Finance Corporation, will bring extensive experience in infrastructure investment and project finance across emerging markets. Since joining IFC in 2013, she has held senior roles across Africa and South Asia, including managing IFC’s infrastructure portfolio across 16 countries.

The Summit will conclude its keynote programme with Prime Minister Dr. Harini Amarasuriya, who will deliver the keynote for “Nation Building in the Digital Age.” The Prime Minister also oversees the Ministry of Education, Higher Education and Vocational Education, bringing a direct policy perspective to discussions on digital transformation, innovation, education and the skills needed for a changing economy.

Together, these perspectives will bring regional, international and policy insight to SLEIS 2026 as Sri Lanka considers how to strengthen economic resilience, attract investment, deepen regional connections and develop new sources of growth.

Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will take place on 12 and 13 October 2026 at the Shangri-La Colombo.

The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Microsoft Sri Lanka (Pvt) Limited, Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.

Registrations for SLEIS 2026 are now closed. The Ceylon Chamber looks forward to welcoming participants to the discussions on Sri Lanka’s future trajectory on 12 and 13 October.

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Commercial Bank launches ‘Prestige’ banking for HNW clients

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Sharhan Muhseen, Chairman of Commercial Bank flanked by Sanath Manatunge, Managing Director/CEO and Hasrath Munasinghe, Executive Director/Chief Operating Officer at the launch of Commercial Bank Prestige Banking

Commercial Bank of Ceylon has launched ‘Prestige’, a three-tier banking proposition aimed at high-net-worth (HNW) clients, combining wealth management, advisory services and lifestyle benefits.

The initiative replaces the bank’s existing ‘Elite’ private banking brand with Ruby, Sapphire and Diamond tiers, designed to cater to customers according to their wealth profiles and banking relationships.

The bank said Prestige would provide dedicated relationship managers, priority branch services, preferential rates on loans and deposits, enhanced card privileges, family banking programmes and offshore account solutions.

Its wealth and investment management services include access to capital-protected income solutions, dual-currency investments, institutional deals and estate and portfolio governance.

Clients will also have access to specialist financial and corporate advisory services, including assistance with international relocation, overseas property and capital repatriation.

The programme includes lifestyle benefits such as VIP airport lounge access, travel concierge services, property management and medical coordination, as well as access to selected art and culinary events.

The bank said its flagship Prestige banking residence at R.G. Senanayake Mawatha, Colombo 07, had been refurbished, with the service to be extended to other economically important cities.

Commercial Bank Managing Director/CEO Sanath Manatunge said Prestige was intended to support customers in managing their wealth, business interests, family needs and long-term legacy.

Existing Elite clients are being transitioned to the new programme, the bank said.

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Ceylinco Life rewards 80 sales achievers with overseas tours

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Ceylinco Life has rewarded 80 members of its sales force with overseas tours to Vietnam and China for their outstanding performance in the company’s 2025 sales competitions.

The group comprised 62 sales achievers who travelled to Vietnam and 18 who visited China.

The Vietnam tour included visits to Hanoi’s Ho Chi Minh Complex, One Pillar Pagoda, Tran Quoc Pagoda and Hoan Kiem Lake. The group also travelled to Ha Long Bay, where they went on an Aurora Cruise and explored attractions including Sung Sot Cave, Luun Cave and Titop Island.

The tour also featured a sunset party aboard the cruise, with music and refreshments.

The 18 achievers who travelled to China visited several of Beijing’s major historical and cultural attractions, including Tiananmen Square, the Forbidden City and the Summer Palace. They also took a boat ride on Kunming Lake.

A highlight of the China tour was a visit to the Mutianyu section of the Great Wall, including a round-trip cable car ride. The group also attended an acrobatic show at Chaoyang Theatre and visited the Panda Garden at Beijing Zoo.

The company said the tours were organised to recognise and reward sales personnel for their performance and achievements.

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