Sampath Bank Statement Pdf Download
Breanne Meisenheimer
Admitting that there was a massive fraud at the bank, the statement said this incident occurred a few months back and the Bank had already taken appropriate measures to correct the situation and ensure no-recurrence.
The statement by Sampath Bank, curiously, has not made any specific reference to the Colombo Telegraph story which provided extensive details relating to the fraud. The same statement has also been sent to the Chief Operating Officer of the Colombo Stock Exchange.
6. Have you by now at least apologized to your customer Ayurvedic Physician and reassured him that all the monies illegally obtained from him by your bank would be refunded with any loss incurred by him has further damages?
3. Does the bank accept that its Internal Audit went in to the matter, when complained and reported that there has been no mistake on the part of the bank or its representative, the Thalahena Manager.
The bank has taken all possible measures to protect customer data involved in transactions and we assure that there is no possibility of any customer data theft that may be used in any fraudulent activity when using Sampath Bank ATMs.
Financial ratios are generally ratios of selected values on an enterprise's financial statements. There are many standard financial ratios used in order to evaluate a business or a company. Financial ratios can also be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses of various companies. In Infront Analytics, financial ratios are categorized according to the financial aspect of the business that the ratio measures:
- Growth ratios measure the company's rate of growth and assess the potential for future growth. E.g. Net Sales Growth, EBITDA Growth, EBIT Growth.
- Profitability ratios measure the returns generated on sales and investment, hence the ability of the company to generate profits.
Profitability ratios include margin ratios (such as profit margin or operating margin) and return ratios (such as return on equity or return on assets).
- Capital structure and liquidity ratios measure the extent to which the company is relying upon debt to fund its operations, and its ability to pay back the debt.
Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios.
- Asset utilization ratios, also called activity or efficiency ratios, measure how efficiently the company's day to day operations are managing inventory, selling and producing products, or using assets to generate revenue.
Financial ratios allow for comparisons between companies, between industries and also between a single company and its industry average or peer group average.
Non-fund based income
With card and trade related activities generating robust results compared to the previous year, total Net Fee and Commission Income (NFCI) of the bank grew by 69.4% from Rs. 11.5 billion reported in 2021 to Rs. 19.4 billion in the year under review.
A combination of volume growth and a substantial tariff increase enabled trade related services to establish itself as a strong contender, contributing 42% towards overall NFCI for the current financial year and recording a growth of 159% over previous financial year.
SampathCards too posted a significant growth of 67% over the previous financial year and accounted for 30% of the total NFCI mix.
The net other operating income for the year was Rs. 19.7 billion, an increase of 311% year on year which was driven by Rs. 164.75 drop in value of the LKR against USD. Total net foreign exchange income reported for the period increased to Rs. 16.3 billion in 2022, up from the Rs. 4.8 billion recorded last year. The bank reported exchange gains of Rs. 18.5 billion under other operating income in 2022 (2021: Rs. 4.2 billion) and Rs. 2.2 billion unrealised exchange loss under net trading income for 2022 (2021: gain of Rs. 636 million).
Impairment charge
The bank recorded Rs. 62.7 billion as total impairment charge for the year under review, of which
Rs. 54.3 billion relates to provisioning on account of loans and advances, while Rs. 7.8 billion is attributed to investments in financial instruments including Sri Lanka Development Bonds (SLDBs) and Sri Lanka International Sovereign Bonds (SLISBs). A further impairment provision of Rs. 0.6 billion has been recognised against credit related commitments and contingencies.
Tax Expenses
Total tax expense of the bank for FY 2022 was Rs. 7.1 billion, which comprises Income Tax (Rs. 1.9 billion), Value Added Tax on financial services (Rs. 5 billion), and Social Security Contribution Levy (Rs. 0.2 billion).
Not included in the above tax expense is the newly imposed one-off Surcharge Tax of Rs. 2.7 billion, which was paid in 2022. The Surcharge Tax was calculated at 25% of the taxable income for the year of assessment 2020/2021 and it was directly set-off against opening equity in line with the Statement of Alternative Treatment (SoAT) on accounting for surcharge tax issued by Institute of Chartered Accountants of Sri Lanka.
The Value Added Tax on Financial Services charge increased by Rs. 1 billion in FY 2022 compared to Rs. 3.9 billion charged in 2021. This was due to the applicable rate increasing from 15% to 18% with effect from 1 January 2022. Furthermore, an additional tax charge of Rs. 222 million in FY 2022 was attributed to the 2.5% Social Security Contribution Levy on value addition, introduced with effect from 1 October 2022.
The bank has captured the income tax rate increase to 30% from 24% for the latter six months of the year of assessment 2022/23. The change in claimable loan loss provision method too was adjusted with transition impact. The deferred tax assets/ liabilities were recognised at a revised rate of 30%.
Assets and Liabilities
Total assets of the bank grew by 10.4% during the year under review to reach Rs. 1.3 trillion on 31 December 2022, from the Rs. 1.2 trillion registered at the previous year end. The increase in cash and cash equivalents as well as net loans and advances contributed to the aforementioned growth. One primary cause of the balance sheet expansion is the LKR devaluation during the year.
Dividend
The board of directors has recommended a final dividend of Rs. 4.60 per share (Rs. 3.45 per share in cash and Rs. 1.15 per share in scrip) for the financial year ended 31 December 2022 subject to the approval of the shareholders at the Annual General Meeting to be held on 30 March 2023. The bank will inform the Director - Bank Supervision of Central Bank of Sri Lanka, the Board approved detailed assessment carried out in deciding the payment of cash dividend for the year 2022. The Dividend pay-out ratio for the year ended 31 December 2022 stood at 40.1% (2021: 39%).
On 29 September 2020, we downgraded Sampath Bank PLC 's (Sampath) long-term foreign-currency deposit rating to Caa1 from B3 and its long-term local-currency deposit rating to Caa1 from B2. We also downgraded the bank's Baseline Credit Assessment (BCA) to caa1 from b2. The outlook on Sampath's ratings, where applicable, was changed to stable.
Sampath's long-term deposit ratings incorporate a high level of support from the Government of Sri Lanka (Caa1 stable), but the ratings do not benefit from any uplift because the bank's BCA is already at the same level as the sovereign rating.
Sampath's BCA of caa1 reflects our expectation that the bank's asset quality will deteriorate substantially amid the economic disruptions caused by the coronavirus pandemic. At the same time, the BCA also factors in the bank's relatively strong capital and stable funding, which will provide sufficient buffers to absorb any near-term financial stress.
The potential impact of rising inflation, higher interest charges and increase in taxes on the retail segment were some of the other factors that were considered in recognising impairment provisions, the bank said in a statement.
The bank reported a profit-after-tax (PAT) of Rs. 7.2 billion and profit-before-tax (PBT) of Rs.9.3 billion for 9-month period reflecting a decline of 19.8 per cent and 24.4 per cent respectively, from the figures reported for the corresponding period in 2021 which is a reflection of the current economic turmoil in the country. Group PAT and PBT was at Rs. 7.7 billion and Rs. 10.2 billion, a drop of 21.6 per cent and 24.3 per cent respectively compared to the corresponding period 2021.
The bank demonstrated its commitment to the national growth agenda by promoting inward remittances and encouraging the inflow of export proceeds to the country while assisting all stakeholders to manage the current economic crisis.
The bank manager has, with the help of a regional manager Sampath Bank and the present Manageress of the Thalahena Branch, have debited the account of a customer who is an Ayurvedic physician and made bank transfers to 21 persons who were completely unknown to the customer.
A couple months ago, when the manager was transferred to another branch, the victims of the fraud had started receiving letters from the bank asking them to settle those dues, which they never obtained. When the victims complained to the bank, the bank officials had not taken their concerns into consideration. In fact, a senior official at the bank had informed one of the victims in writing that nothing illegal had happened as per their regulations.
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