Sampath Bank posts Rs. 16.6 Bn PAT, reflecting 13% YoY growth

Sampath Bank delivered a strong financial performance for the six months ended 30^th June 2026, reporting Total Operating Income of Rs 63.3 Bn, an increase of 17% compared to the corresponding period last year.

The Bank’s performance was driven by sustained growth across its core revenue streams, with Net Interest Income increasing by 11% and Net Fee and Commission Income rising by as much as 26%.

The Bank’s earnings performance was, however, moderated by a higher impairment charge of Rs 5.0 Bn - a year-on-year increase of a very significant 324% - driven primarily by collective impairment attributable to the continued expansion of the loan portfolio as well as the Bank’s prudent provisioning strategy adopted in light of ongoing geopolitical uncertainties and the evolving macroeconomic environment.

Despite higher operating expenses arising from business expansion initiatives and continued strategic investments in technology, distribution and human capital, the Bank reported a Profit After Tax of Rs 16.6 Bn for the period, reflecting a robust year-on-year increase of 13%.

In line with its strategic growth priorities, the Bank’s loan portfolio expanded by Rs 226 Bn from its position at the end of 2025, representing a robust increase of 18%.

The Bank recorded a strong quarter-on-quarter improvement in profitability, with Profit After Tax increasing by 69% compared to the preceding quarter. This performance was driven by a 22% increase in Total Operating Income, reflecting continued business momentum across the Bank's core operations, together with an 89% reduction in impairment charges.

 The Sampath Group reported a Profit Before Tax of Rs 26.6 Bn and a Profit After Tax of Rs 17.9 Bn for the six months ended 30^th June 2026.

 In the first half of 2026, Sampath Bank reported Total Interest Income of Rs 97.8 Bn, representing a 9% increase compared to the corresponding period last year. 

Interest expenses increased by 8% to Rs 55.1 Bn, primarily reflecting the continued expansion of the deposit base and additional borrowings undertaken to support the Bank’s accelerated credit growth. As the growth in interest income outpaced the increase in funding costs, Net Interest Income (NII) increased by 11% over the corresponding period of the previous year to Rs 42.8 Bn.

Consequently, the Bank’s Net Interest Margin (NIM) improved to 4.21%, compared with 4.11% reported in 2025. This improvement was primarily driven by improved yields on the advances portfolio, supported by strong loan growth and favourable movements in market interest rates. 

During the first half of 2026, the Bank recovered Rs 572 Mn from written-off customers, compared with Rs 216 Mn recognised during the corresponding period of 2025.

During the first half of 2026, the Bank’s operating expenses increased by 21% year-on-year, reflecting continued investment in strategic growth initiatives, capacity enhancement, and future business expansion.

As operating expenses grew at a faster pace than Total Operating Income, which increased by 17% during the period, the Bank’s Cost-to-Income Ratio increased to 41.7%, compared with 40.0% in the corresponding period of 2025.

The Bank recorded a total tax expense of Rs 15.3 Bn for the first half of 2026, representing a 8% decrease compared with the corresponding period of 2025.

Sampath Bank continued its growth momentum during the first half of 2026, expanding its asset base by 8% from the year-end 2025 position to reach Rs 2.13 Tn as at 30^th June 2026.

Picture: Harsha Amarasekera, Chairman and Sanjaya Gunawardana, Managing Director/CEO