Sampath Bank names 2025 as a year in which it establishes strategies for its long-term growth.

Sampath Group’s total assets exceed Rs. 2 trillion.

Sampath Group recorded its highest ever profit of Rs. 53.0 billion before tax and Rs. 32.6 billion after tax at the end of 2025, an annual growth of 8% and 13% respectively compared to the previous year. The group’s total assets also exceeded Rs. 2 trillion in 2025, an annual growth of 12% compared to the end of 2024.

Sampath Bank also recorded its highest ever profit of Rs. 49.3 billion before tax and Rs. 30.2 billion after tax for the year ended 31 December 2025, an annual growth of 5% and 11% respectively compared to the previous year. Excluding the additional profit recorded due to the restructuring of the Sri Lanka International Sovereign Bond (SLISB) in 2024, the bank would have recorded a robust 22% increase in its pre-tax and post-tax profits in 2025. Furthermore, the bank’s loan portfolio grew by Rs. 259 billion during 2025, increasing by 27% from Rs. 965 billion at the end of 2024 to Rs. 1.2 trillion.

Notable financial results reported for the year ended 31 December 2025

Declaration of an initial and final cash dividend of Rs. 10.30 per share. This is an increase of Rs. 0.95 per share compared to the previous year.

Return on equity (ROE) increased from 17.74% in 2024 to 17.93%.

The average monthly growth of the loan portfolio was recorded at Rs. 36.5 billion since August 2025 due to the acceleration of the loan disbursement process.

The level of Stage 2 and 3 loans decreased due to the improvement in the quality of the loan portfolio.

Capital and operating expenses increased due to the strategic measures implemented to enhance the long-term progress of the bank.

Total tax expense exceeded Rs. 33 billion and the effective tax rate was recorded at 52.3%.

The Tier 1 and Total Capital Adequacy Ratios were significantly higher than the minimum regulatory requirements at 14.75% and 17.65% respectively.

The Bank's total income in 2025 was recorded at Rs. 218.8 billion, an annual growth of 12% compared to the previous year, contributed to this by interest income, fee and commission income and other income. The Bank's total interest income for the year ended 31 December 2025 was recorded at Rs. 181.1 billion, a decrease of 1% compared to the previous year. This was primarily due to the continued decline in the risk-weighted prime lending rate (AWPLR) during the year and the decline in interest rates on government securities. Also, due to increased interest expense due to increased deposits and borrowings, net interest income was recorded at Rs. 77.8 billion for the year 2025, a decrease of 3% compared to the previous year.

Concurrently, the net interest margin also declined by 79 basis points to 4.11% at the end of 2025 from 4.90% at the end of 2024.

The Bank’s net fee and commission income increased by 21% year-on-year to Rs. 21.2 billion, driven by strong economic growth, an increase in the loan portfolio and increased card usage.

The Bank recorded an impairment charge reversal of Rs. 0.6 billion for 2025, a decrease of Rs. 11.1 billion compared to the impairment charge reversal reported in the previous year. Of the total impairment charge reversal reported in 2024, Rs. 15.8 billion was recognized due to the restructuring of Sri Lanka International Sovereign Bonds. Had this reversal not been reported, an impairment charge of Rs. 4.1 billion would have been recognised for the year.

Operating expenses for the year increased by 19% compared to the previous year, primarily due to higher personnel costs due to annual salary increments and new staff recruitments to implement new strategic initiatives, higher IT-related expenses and other operating expenses.

In addition, total tax expense increased from Rs. 32.6 billion reported for 2024 to Rs. 33.2 billion for 2025, primarily due to an increase in taxable income. Furthermore, total tax paid to the government during the year exceeded Rs. 39.0 billion.

The Bank managed to maintain all capital ratios above the minimum regulatory requirements throughout the year. As at 31 December 2025, the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio were reported at 14.75%, 14.75% and 17.65% respectively.

The Board of Directors of the Bank has recommended a final cash dividend of Rs. 10.30 per share for the financial year ending 31 December 2025, subject to the approval of the shareholders at the Annual General Meeting to be held on 30 March 2026, and the dividend payout ratio for the year ending 31 December 2025 was 39.98% (2024 – 40.13%).

Sampath Bank's total assets grew by 11% to Rs. 1.98 trillion as at 31 December 2025, primarily due to an increase of Rs. 259 billion in loans and advances from Rs. 964.6 billion as at the end of 2024 to Rs. 1,223.6 billion as at the end of 2025. The bank's total deposits