SAMPATH BANK PLC

SAMPATH BANK PLCInterim Financial Statements

for the period ended 31st March 2021(In terms of rule 7.4 of the Colombo Stock Exchange)

Regaining the momentum amidst continuing headwinds While the Pandemic is undoubtedly one of the most formidable challenges Sri Lanka has encountered in recent years, it is believed that the collective response by the local Banking sector has helped the country as a whole to handle the unexpected economic downturn in 2020. Sampath Bank too faced many challenges in adjusting to the pandemic. Transitioning into a fully digital environment and an entirely new operating model under pandemic related restrictions was no easy feat. However, thanks to the solid progress made on the digital front in the recent past, the Bank was able to make the transition in a matter of days to ensure uninterrupted operations. Equally importantly, Sampath Bank played a vital role in stabilizing the economy through the disbursement of the relief package for COVID affected businesses and individuals. The Bank extended the phase I of the Covid – 19 debt moratorium to over 50% of its loan book last year while 29% of the loan book remained under phase II of the debt moratorium in 1Q 2021 as well. Sampath Bank also actively participated in disbursing the Saubhagya Renaissance scheme to eligible customers. Where necessary, the Bank also took its own initiatives to assist customers to tide over the difficult times. As the pandemic situation continues to evolve and bring fresh challenges, Sampath Bank capitalized on the lessons learnt in the past to strengthen resilience and accelerate its transformation to the post-pandemic world. At the same time, the Bank reiterates its commitment in rolling out new relief measures proposed for 2021. Meanwhile, the Bank subdivided its ordinary shares in the proportion 01:03. As a result, the number of shares increased from 381,457,985 to 1,144,373,955. Financial results of Sampath Bank for the first quarter of 2021: The Bank recorded a Profit before tax (PBT) of Rs 6.1 Bn in 1Q 2021 compared to Rs 3 Bn in 1Q 2020, denoting a growth of 101%, while Profit after tax (PAT) increased by 83% to Rs 4.6 Bn from Rs 2.5 Bn recorded in the first quarter of 2020. Resilient performance of all business lines along with the improved credit quality helped bolster Sampath Bank performance in the first quarter of 2021. The Sampath Group also registered significant growth in 1Q 2021, as evinced by the improvement in both PAT and PBT in the first quarter of the year. The Group reported Rs 5.1 Bn PAT and Rs 6.7 Bn PBT for the period under review, denoting a growth of 90.7% and 103.5%, respectively compared to the figures reported for the same period in the previous year. Fund Based Income (FBI) Net interest income (NII) declined by 7.7% during the period under review to Rs 9.2 Bn from Rs 9.9 Bn recorded in the corresponding period in 2020. The drop in the NII is attributed to the prevailing low interest rate environment. However, the Bank continues to proactively monitor all variables that are likely to impact the NII to ensure a sustainable return. Overall, interest income for the period under review decreased by Rs 3.8 Bn to Rs 20.7 Bn compared to Rs 24.5 Bn recorded for the corresponding period in 2020, a decline of 15.4%. During the first quarter of 2021, the Bank registered Rs 11.5 Bn in interest expenses which was a 20.7% decline against the corresponding period in 2020. Non-Fund Based Income (NFBI) The Bank's NFBI comprises credit, trade as well as card and electronic channel related fees and commissions. Driven by higher business volumes in these areas, NFBI for the quarter under review grew to Rs 2.6 Bn, a 15.8% increase compared to Rs 2.2 Bn recorded in 1Q 2020. Net other operating income grew by 16.9% during the period under review, led by an increase in realized exchange income which is attributed to a 7.3% depreciation of the Sri Lankan Rupee against the US Dollar. Benefitting from the Rupee depreciation, net other operating income for the first three months of 2021 increased to Rs 2.7 Bn, compared to Rs 2.3 Bn reported during the corresponding period in 2020.

On the other hand, due to the aforementioned currency depreciation, the Bank incurred a net trading loss of Rs 335 Mn due to mark-to-market losses on forward exchange contracts. Accordingly, the Bank's net exchange income from foreign exchange transactions amounted to Rs 2.3 Bn for the period under review. Operating Expenses The Bank's total operating expenses, which amounted to Rs 5.1 Bn in 1Q 2020, increased by 6.9% to Rs 5.5 Bn in 1Q 2021. Higher personnel expenses mainly contributed towards this increase. However, thanks to stringent cost containment strategies, other expenses decreased by 6.4% in 1Q 2021 compared to the corresponding period in 2020. Meanwhile, owing to the overall increase in operating expenses, Sampath Bank's cost-to-income ratio (excluding taxes on financial services) increased to 38.9% at the end of 31st March 2021, considerably higher than the 37.1% reported for the corresponding period in 2020. Impairment charges Impairment charges for the period under review dropped by 75.7% compared to 1Q 2020 and stood at Rs 1.2 Bn at the end of the quarter ended 31st March 2021. This is primarily due to higher impairment provisions made in the first quarter of last year. The first quarter of 2020 saw the spread of COVID -19 in Sri Lanka, prompting the government to declare a nationwide lockdown from March 2020 for a period of 2 months. This unique situation created uncertainties which the country has never seen before. After a careful assessment of the situation and considering the possible impact on the Sri Lankan economy and its direct impact on the Bank's credit quality, Sampath Bank prudently decided to increase substantially its impairment provision for the 1Q 2020. However, commencing from the latter part of the year 2020, the Bank saw an improvement in credit quality among the customers who did not obtain the moratorium which is reflected in the decrease of stage 3 loans by 4.4%. This factor also contributed to the decrease in the impairment provision compared to 1Q 2020. In 2020, the Bank downgraded customers operating in elevated risk industries on a prudential basis from Stage 1 to Stage 2 and recognised a substantial provision to account for the potential risk. Further provisions were made by increasing the probability weightage on the worst-case macro-economic scenario to capture the expected credit losses. Moreover, given the sluggish movement in the overall advances portfolio and the debt moratorium extended in 2020 and also considering the potential impact that could arise once the debt moratorium phase II lapses, it was decided to recognise a material impairment provision as an allowance for overlay, in 2020. It should be noted that the Bank has used the same impairment models and assumptions used in the previous year to determine impairment provisions for 1Q 2021 and continues to carry forward the additional impairment provisions made last year. The CBSL permitted the Bank to apply a minimum loss given default (LGD) of 10% for the investment in foreign currency denominated government securities. However, the Bank applied a prudential approach by using the LGD of 20%, which it had applied in 2020. Taxation Income tax expenses of the Bank stood at Rs 1.5 Bn at the end of 1Q 2021, which is an increase of 181.9% compared to the corresponding period in 2020. This is mainly due to the increase in tax base compared to the previous year same period. As per the announcement dated 12th February 2020, income tax rate applicable for the Banking sector was reduced to 24% with effect from 1st January 2020. As the said amendment was not enacted, both income tax and deferred tax provisions were calculated at the rate of 28% for the year ended 31st December 2020. However, based on the guidelines issued by the Financial Reporting Standards Implementation and Interpretation Committee (FRSIIC) of CASL dated 23rd April 2021, the revised rate of 24% can be used to compute tax provisions. Accordingly, Sampath Bank applied the revised rate of 24% and the other proposals announced by the government for the computation of income tax liabilities & deferred tax assets/liabilities in March 2021.

The rate applied in the corresponding period in 2020 was 28%. These amendments collectively reduced the tax expense of the Bank by Rs 405 Mn for 1Q 2021. This includes a reversal of Rs 1,093 Mn against current tax expense and an additional charge of Rs 688 Mn against deferred tax. In addition, the deferred tax charge to other comprehensive income decreased by Rs 70 Mn. Business growth From the Rs 1.11 Tn reported as at 31st December 2020, Sampath Bank’s total asset base grew by 3.7% (annualized 15.1%) in 1Q 2021 to reach Rs 1.15 Tn as at 31st March 2021. Gross loans & advances grew by 2.7% (annualized 10.9%) to Rs 779 Bn as at 31st March 2021. Meanwhile, the total deposit base increased by Rs 28 Bn for the same period, to Rs 914 Bn as at the reporting date, a growth of 3.2% (annualized 13%). The Bank's CASA ratio at the end of 1Q 2021 stood at 41.6% Capital adequacy and performance ratios Sampath Bank’s Common Equity Tier (CET) I Capital, Tier I Capital and Total Capital Adequacy ratios as at 31st March 2021 stood at 12.94%, 12.94% and 15.76% respectively, all well above the corresponding minimum regulatory requirement of 6.5%, 8% and 12%, applicable as at the reporting date. The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Off-Shore Banking Unit was at 35.82% and 33.12% respectively as at the reporting date. Return on Average Assets (ROA) (before tax) stood at 2.19% and Return on Average Equity (ROE) (after tax) stood at 16.97% at the end of 31st March 2021. Debenture Issue During the month of April 2021, the Bank successfully raised Rs 6 Bn Tier 2 capital via issuance of Basel III compliant, listed, rated, unsecured, subordinated, redeemable 7-year debentures with a non-viability conversion. It is worth mentioning that the aforementioned debenture issue was oversubscribed on day 1. This successful debenture issue reiterates the confidence the investors have placed on Sampath Bank. Dividend payout ratio Sampath Bank recorded the highest cash dividend payout ratio for 2020 compared to the peers despite the challenging economic conditions that prevailed.

For the three months ended 31st March 2021 2020 Change 2021 2020 Change

Rs 000 Rs 000 % Rs 000 Rs 000 %

Gross income 26,071,553 28,865,763 (9.7) 28,292,101 30,905,339 (8.5)

Interest income 20,747,061 24,525,865 (15.4) 22,389,825 26,357,803 (15.1)

Less : Interest expense 11,533,137 14,547,949 (20.7) 12,151,115 15,526,482 (21.7)

Net interest income 9,213,924 9,977,916 (7.7) 10,238,710 10,831,321 (5.5)

Fee & commission income 2,968,778 2,667,742 11.3 3,253,916 2,759,115 17.9

Less : Fee & commission expense 370,045 423,792 (12.7) 370,187 423,972 (12.7)

Net fee & commission income 2,598,733 2,243,950 15.8 2,883,729 2,335,143 23.5

Net loss from trading (397,939) (664,121) 40.1 (397,939) (664,121) 40.1

Net gain on derecognition of financial assets

- at fair value through profit or loss 42,044 33,764 24.5 42,044 33,764 24.5

- at fair value through other comprehensive income 25,940 5,832 344.8 25,940 5,832 344.8

Net other operating income 2,685,669 2,296,681 16.9 2,978,315 2,412,946 23.4

Total operating income 14,168,371 13,894,022 2.0 15,770,799 14,954,885 5.5

Less: Impairment charge 1,179,260 4,854,273 (75.7) 1,579,789 5,203,518 (69.6)

Net operating income 12,989,111 9,039,749 43.7 14,191,010 9,751,367 45.5

Less: Operating expenses

Personnel expenses 3,017,247 2,604,690 15.8 3,329,943 2,842,083 17.2

Depreciation and amortisation expenses 637,803 566,538 12.6 657,049 583,131 12.7

Other expenses 1,851,550 1,978,033 (6.4) 2,035,005 2,122,239 (4.1)

Total operating expenses 5,506,600 5,149,261 6.9 6,021,997 5,547,453 8.6

7,482,511 3,890,488 92.3 8,169,013 4,203,914 94.3

Less: Value added tax on financial services 1,354,788 839,256 61.4 1,449,621 902,505 60.6

Profit before income tax 6,127,723 3,051,232 100.8 6,719,392 3,301,409 103.5

Less : Income tax expense 1,549,846 549,746 181.9 1,616,817 625,163 158.6

Profit for the period 4,577,877 2,501,486 83.0 5,102,575 2,676,246 90.7

Attributable to:

Equity holders of the Bank 4,577,877 2,501,486 83.0 5,102,575 2,676,246 90.7

Non controlling interest - - -

4,577,877 2,501,486 83.0 5,102,575 2,676,246 90.7

Earnings per share - Basic/Diluted (Rs) 4.00 2.19 83.0 4.46 2.34 90.7

1

Operating profit before taxes on financial services

STATEMENT OF PROFIT OR LOSS

Bank Group

For the three months ended 31st March 2021 2020 Change 2021 2020 Change

Rs 000 Rs 000 % Rs 000 Rs 000 %

Profit for the period 4,577,877 2,501,486 83.0 5,102,575 2,676,246 90.7

Other comprehensive income

Debt instruments at fair value through other comprehensive income:

Gain/(loss) arising on re-measurement 40,403 (5,344) 856.0 40,403 (5,344) 856.0

Reclassification to profit or loss (25,940) (5,832) (344.8) (25,940) (5,832) (344.8)

Changes in impairment for expected credit losses 11,315 3,391 233.7 11,315 3,391 233.7

Deferred tax effect including the effect of rate change on the opening balance (11,691) 2,180 (636.3) (11,691) 2,180 (636.3)

14,087 (5,605) 351.3 14,087 (5,605) 351.3

Loss arising on re-measurement (473,044) (230,685) (105.1) (473,044) (230,685) (105.1)

Exchange difference in translation 256,826 44,264 480.2 256,826 44,264 480.2

Deferred tax effect including the effect of rate change on the opening balance 159,519 52,198 205.6 159,519 52,198 205.6

(56,699) (134,223) 57.8 (56,699) (134,223) 57.8

Deferred tax effect on rate change:

(205,794) - (100.0) (209,248) - (100.0)

166,311 - 100.0 331,244 - 100.0

(39,483) - (100.0) 121,996 - 100.0

(96,182) (134,223) 28.3 65,297 (134,223) 148.6

Other comprehensive income net of tax (82,095) (139,828) 41.3 79,384 (139,828) 156.8

Total comprehensive income for the period net of tax 4,495,782 2,361,658 90.4 5,181,959 2,536,418 104.3

Attributable to:

Equity holders of the Bank 4,495,782 2,361,658 90.4 5,181,959 2,536,418 104.3


4,495,782 2,361,658 90.4 5,181,959 2,536,418 104.3

STATEMENT OF COMPREHENSIVE INCOME

Net other comprehensive income to be reclassified to profit or loss

Items that will not to be reclassified to profit or loss:

Items that will be reclassified to profit or loss:

Bank Group

2

Equity instruments at fair value through other comprehensive income:

Net other comprehensive income not to be reclassified to profit or loss

Revaluation surplus on property, plant & equipment

Actuarial loss on defined benefit plans

31st March

2021

31st December

2020

Change 31st March

2021

31st December

2020

Change

(Audited) (Audited)

Rs 000 Rs 000 % Rs 000 Rs 000 %

ASSETS

Cash & cash equivalents 24,589,110 29,053,585 (15.4) 24,764,660 29,218,921 (15.2)

Balances with Central Bank of Sri Lanka 13,944,696 13,335,178 4.6 13,944,696 13,335,178 4.6

Placements with banks 729,208 3,228,166 (77.4) 729,208 3,228,166 (77.4)

2,416,743 4,450,557 (45.7) 4,218,510 6,231,719 (32.3)

Derivative financial instruments 1,192,744 2,186,515 (45.4) 1,192,744 2,186,515 (45.4)

8,830,315 9,313,628 (5.2) 8,830,315 9,313,628 (5.2)

Financial assets at amortised cost

- loans & advances 739,671,011 720,215,247 2.7 772,688,738 752,437,782 2.7

- debt & other instruments 306,872,950 275,091,572 11.6 306,907,705 275,125,717 11.6

Financial assets - fair value through other comprehensive income 23,607,444 24,237,803 (2.6) 23,607,500 24,237,859 (2.6)

Investment in subsidiaries 3,350,774 3,350,774 - - - -

Property, plant & equipment 8,066,652 8,126,285 (0.7) 15,963,328 15,891,415 0.5

Intangible assets 653,529 753,615 (13.3) 685,932 791,689 (13.4)

Right-of-use assets 3,419,780 3,280,166 4.3 3,153,980 2,905,661 8.5

Current tax receivables - - - 32,720 42,883 (23.7)

Deferred tax assets 3,796,614 4,634,040 (18.1) 3,798,548 4,653,496 (18.4)

Other assets 10,588,793 9,013,993 17.5 11,945,603 10,084,799 18.5

Total Assets 1,151,730,363 1,110,271,124 3.7 1,192,464,187 1,149,685,428 3.7

LIABILITIES

Due to banks 1,228,913 1,522,402 (19.3) 1,228,913 1,523,333 (19.3)

Derivative financial instruments 1,371,890 2,030,947 (32.5) 1,371,890 2,030,947 (32.5)

Securities sold under repurchase agreements 9,794,022 3,399,896 188.1 9,696,022 2,306,896 320.3

Financial liabilities at amortised cost

- due to depositors 913,628,377 885,724,901 3.2 930,496,424 902,498,739 3.1

- due to other borrowers 51,217,365 49,052,595 4.4 58,302,970 56,871,506 2.5

- due to debt securities holders 30,256,991 30,790,007 (1.7) 36,267,743 37,078,483 (2.2)

Retirement benefit obligation 6,575,327 6,871,592 (4.3) 6,701,419 6,988,658 (4.1)

Dividend payable 3,267,457 121,270 2,594.4 3,267,457 121,270 2,594.4

Current tax liabilities 4,686,529 4,674,756 0.3 4,830,226 4,792,904 0.8

Deferred tax liabilities - - - 1,307,012 1,485,302 (12.0)

Other liabilities 20,805,963 18,533,954 12.3 22,544,555 19,572,736 15.2

Total Liabilities 1,042,832,834 1,002,722,320 4.0 1,076,014,631 1,035,270,774 3.9

STATEMENT OF FINANCIAL POSITION

Bank Group

As at

Reverse repurchase agreements

3

Financial assets recognised through profit or loss - measured at fair value

As at 31st March

2021

31st December

2020

Change 31st March

2021

31st December

2020

Change

(Audited) (Audited)

Rs 000 Rs 000 % Rs 000 Rs 000 %

EQUITY

Stated capital 47,622,493 47,622,493 - 47,622,493 47,622,493 -

Reserves

Statutory reserve fund 4,450,000 4,450,000 - 4,635,000 4,635,000 -

Other reserves 51,411,258 51,287,588 0.2 54,544,984 54,256,381 0.5

Retained earnings 5,413,778 4,188,723 29.2 9,647,079 7,900,780 22.1

Total equity attributable to equity holders of the Bank 108,897,529 107,548,804 1.3 116,449,556 114,414,654 1.8


Total Equity 108,897,529 107,548,804 1.3 116,449,556 114,414,654 1.8

Total Liabilities & Equity 1,151,730,363 1,110,271,124 3.7 1,192,464,187 1,149,685,428 3.7

Commitments & contingencies 474,833,451 482,405,749 (1.6) 473,249,906 477,967,519 (1.0)

Net asset value per share (Rs) 95.16 93.98 1.3 101.76 99.98 1.8

Memorandum information

Number of employees 4,016 4,048

Number of branches 229 229

CERTIFICATION:

(Sgd)

Ajantha de Vas Gunasekara

Executive Director / Group Chief Financial Officer

We, the undersigned, being the Chairman and the Senior Independent Director of Sampath Bank PLC, certify jointly that:

(Sgd) (Sgd)

Harsha Amarasekera Deshal de Mel

Chairman Senior Independent Director

11th May 2021

4

(a) the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka; and

(b) the information contained in these statements have been extracted from the unaudited Financial Statements of the Bank and its Subsidiary companies unless indicated

as audited.

I certify that the above Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007.

STATEMENT OF FINANCIAL POSITIONBank Group

Bank

For the three months ended 31st March 2020

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2020 47,622,493 4,040,000 2,993,599 807,879 43,435,171 6,106,642 105,005,784

Total comprehensive income for the period

Profit for the period - - - - - 2,501,486 2,501,486

Other comprehensive income - - - (139,828) - - (139,828)

Total comprehensive income for the period - - - (139,828) - 2,501,486 2,361,658

Transactions with equity holders, recognised directly in equity,

contributions by and distributions to equity holders

Unclaimed dividend adjustments - - - - (166) - (166)

Total contributions by and distributions to equity holders - - - - (166) - (166)

Balance as at 31st March 2020 47,622,493 4,040,000 2,993,599 668,051 43,435,005 8,608,128 107,367,276


Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 47,622,493 4,450,000 2,993,599 1,838,203 46,455,786 4,188,723 107,548,804


Profit for the period - - - - - 4,577,877 4,577,877

Other comprehensive income - - 166,311 (42,612) - (205,794) (82,095)

Total comprehensive income for the period - - 166,311 (42,612) - 4,372,083 4,495,782



Final dividend for 2020: cash - - - - - (3,147,028) (3,147,028)

Unclaimed dividend adjustments - - - - (29) - (29)

Total contributions by and distributions to equity holders - - - - (29) (3,147,028) (3,147,057)

Balance as at 31st March 2021 47,622,493 4,450,000 3,159,910 1,795,591 46,455,757 5,413,778 108,897,529

Total

Equity

Retained

Earnings

Other Reserves

STATEMENT OF CHANGES IN EQUITY

Retained

Earnings

Other Reserves

Revaluation

Reserve

Stated

Capital

Statutory

Reserve Fund General

Reserve

FVOCI Reserve

5

Revaluation

Reserve

FVOCI Reserve General

Reserve

Stated

Capital

Statutory

Reserve Fund

Total

Equity

Group


FVOCI

Reserve

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2020 47,622,493 4,204,000 5,962,392 807,879 43,435,171 9,424,692 111,456,627 - 111,456,627


Profit for the period - - - - - 2,676,246 2,676,246 - 2,676,246

Other comprehensive income - - - (139,828) - - (139,828) - (139,828)

Total comprehensive income for the period - - - (139,828) - 2,676,246 2,536,418 - 2,536,418



Unclaimed dividend adjustments - - - - (166) - (166) - (166)

Total contributions by and distributions to equity holders - - - - (166) - (166) - (166)

Balance as at 31st March 2020 47,622,493 4,204,000 5,962,392 668,051 43,435,005 12,100,938 113,992,879 - 113,992,879


FVOCI

Reserve

General

Reserve

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 47,622,493 4,635,000 5,962,392 1,838,203 46,455,786 7,900,780 114,414,654 - 114,414,654


Profit for the Period - - - - - 5,102,575 5,102,575 - 5,102,575

Other comprehensive income - - 331,244 (42,612) - (209,248) 79,384 - 79,384

Total comprehensive income for the period - - 331,244 (42,612) - 4,893,327 5,181,959 - 5,181,959



Final dividend for 2020: cash - - - - - (3,147,028) (3,147,028) - (3,147,028)

Unclaimed dividend adjustments - - - - (29) - (29) - (29)

Total contributions by and distributions to equity holders - - - - (29) (3,147,028) (3,147,057) - (3,147,057)

Balance as at 31st March 2021 47,622,493 4,635,000 6,293,636 1,795,591 46,455,757 9,647,079 116,449,556 - 116,449,556

-

Stated

Capital

Statutory

Reserve Fund

6

Other Reserves Retained

Earnings

Total Equity

Attributable to

Equity Holders

of the Bank

Non Controlling

Interest

Total

EquityRevaluation

Reserve

STATEMENT OF CHANGES IN EQUITY

Total

Equity

Stated

Capital

Statutory

Reserve Fund General

Reserve

Revaluation

Reserve

Other Reserves Retained

Earnings

Total Equity

Attributable to

Equity Holders

of the Bank

Non Controlling

Interest

For the three months ended 31st March 2021 2020 2021 2020

Rs 000 Rs 000 Rs 000 Rs 000

Cash flows from operating activitiesInterest receipts 17,856,793 22,274,733 19,496,852 24,048,459

Interest payments (12,699,556) (15,989,355) (13,329,210) (16,910,636)

Net commission receipts 2,571,347 2,209,509 2,856,343 2,300,702

Cash payments to employees (3,093,824) (2,914,687) (3,397,444) (3,143,508)

Taxes on financial services (1,059,069) (1,350,215) (1,177,926) (1,413,464)

Receipts from other operating activities 2,672,929 2,291,911 2,964,127 2,412,674

Cash payments to other operating activities (1,924,506) (2,044,452) (1,510,987) (1,930,461)

Operating profit before changes in operating assets & liabilities 4,324,114 4,477,444 5,901,755 5,363,766

(Increase)/decrease in operating assets

Balances with Central Bank of Sri Lanka (609,518) 6,225,938 (609,518) 6,225,938

Financial assets at amortised cost - loans & advances (17,578,130) (22,780,905) (18,770,910) (30,657,212)

Other assets (1,498,666) 913,769 (1,761,624) 874,312

(19,686,314) (15,641,198) (21,142,052) (23,556,962)

Increase/(decrease) in operating liabilities

Due to banks (24,124) 336,202 (24,124) 336,202

Re-purchase agreements 6,430,061 (14,791,702) 7,425,061 (14,787,702)

Financial liabilities at amortised cost - due to depositors 28,541,644 31,601,149 28,817,466 33,084,325

Financial liabilities at amortised cost - due to other borrowers 2,127,880 5,977,804 1,394,023 11,971,089

Other liabilities 1,515,561 (1,237,753) 1,526,143 (1,238,757)

38,591,022 21,885,700 39,138,569 29,365,157

Net cash generated from/(used in) operating activities before income tax 23,228,822 10,721,946 23,898,272 11,171,961

Income tax paid (592,301) (3,356,364) (639,901) (3,444,720)

Net cash generated from operating activities 22,636,521 7,365,582 23,258,371 7,727,241

Cash flows from investing activities

Purchase of property, plant & equipment (132,154) (153,978) (382,255) (463,516)

Proceeds from disposal of property plant & equipment - 2,096 17,063 2,685

Net cash flow from reverse repurchase agreements 2,033,257 - 2,012,652 (323,945)

Net cash flow from financial assets - FVPL 460,940 (254,962) 460,940 (254,962)

Net cash flow from debt instruments at amortised cost (31,785,860) 9,523,819 (31,786,470) 9,523,698

Net cash flow from financial assets - FVOCI 426,623 (723,958) 426,623 (723,958)

Purchase of intangible assets (9,405) (81,731) (9,834) (83,046)

Dividend received from financial assets 13,932 1,360 13,932 1,360

Dividend received from subsidiaries - 4,828 - -

Net cash (used in)/generated from investing activities (28,992,667) 8,317,474 (29,247,349) 7,678,316

Cash flows from financing activities

Repayment of securitised loans - - (447,110) -

Repayment of principal portion of lease liabilities (333,890) (220,624) (242,803) (129,659)

Net cash used in financing activities (333,890) (220,624) (689,913) (129,659)

Net cash (used in)/generated during the period (6,690,036) 15,462,432 (6,678,891) 15,275,898

Cash & cash equivalents at the beginning of the year 31,944,412 24,593,341 32,108,832 24,725,465

Cash & cash equivalents at the end of the period 25,254,376 40,055,773 25,429,941 40,001,363

STATEMENT OF CASH FLOWS

Bank Group

7

1. Analysis of Loans and Advances and Impairment

As at 31.03.2021 31.12.2020 31.03.2021 31.12.2020

(Audited) (Audited)

Rs 000 Rs 000 Rs 000 Rs 000

1.1 Gross loans & advances 779,225,470 758,942,290 815,556,119 794,079,619

Less: Accumulated impairment under stage 1 3,801,009 3,679,288 3,944,179 3,800,247

Accumulated impairment under stage 2 11,474,043 10,707,506 11,813,156 11,007,341

Accumulated impairment under stage 3 24,279,407 24,340,249 27,110,046 26,834,249

Net loans & advances 739,671,011 720,215,247 772,688,738 752,437,782

1.2 Product-wise loans and advances

Local currency

Bills of exchange 418,167 368,850 418,167 368,850

Leasing 36,615,945 35,467,037 68,172,891 66,155,491

Housing loans 48,368,316 45,860,707 48,368,316 45,860,707

Export loans 3,881,408 3,612,790 3,881,408 3,612,790

Import loans 46,550,153 45,157,585 46,550,153 45,157,585

Refinance loans 21,410,018 22,065,236 21,410,018 22,065,236

Term loans 337,279,654 329,064,664 336,254,938 327,724,035

Hire purchase 7,259 7,259 16,367 16,274

Loans against investment fund account (IFA) 91,261 92,623 91,261 92,623

Overdraft 84,681,173 80,856,724 84,354,098 80,619,150

Staff loans 9,750,757 9,272,970 9,901,350 9,416,997

Pawning and gold loans 38,309,606 36,524,159 43,295,932 41,304,635

Credit cards 16,293,637 15,799,837 16,293,637 15,799,837

Money market loans 29,466,797 35,733,782 29,466,797 35,733,782

Factoring 2,444,863 2,242,061 3,025,941 2,847,402

Others 35,566 12,414 433,955 500,633

Sub total 675,604,580 662,138,698 711,935,229 697,276,027

Foreign currency

Bills of exchange 2,652,233 2,380,228 2,652,233 2,380,228

Housing loans 1,013,677 1,010,732 1,013,677 1,010,732

Export loans 26,287,710 24,647,787 26,287,710 24,647,787

Import loans 8,532,541 8,017,811 8,532,541 8,017,811

Term loans 59,668,069 54,228,169 59,668,069 54,228,169

Overdraft 5,413,356 6,467,615 5,413,356 6,467,615

Others 53,304 51,250 53,304 51,250

Sub total 103,620,890 96,803,592 103,620,890 96,803,592

Total gross loans and advances 779,225,470 758,942,290 815,556,119 794,079,619

1.3 Movement of Impairment During the Period

Bank Stage 1 Stage 2 Stage 3 Total

Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 3,679,288 10,707,506 24,340,249 38,727,043

Net charge to profit or loss 121,721 766,537 79,656 967,914

Write-off during the period - - (68,912) (68,912)

Interest income accrued on impaired loans & advances - - (717,951) (717,951)

Other movements - - 646,365 646,365

Balance as at 31st March 2021 3,801,009 11,474,043 24,279,407 39,554,459

Group Stage 1 Stage 2 Stage 3 Total

Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 3,800,247 11,007,341 26,834,249 41,641,837

Net charge to profit or loss 143,932 805,815 417,057 1,366,804

Write-off during the period - - (68,912) (68,912)

Interest income accrued on impaired loans & advances - - (717,951) (717,951)

Other movements - - 645,603 645,603

Balance as at 31st March 2021 3,944,179 11,813,156 27,110,046 42,867,381

NOTES TO THE FINANCIAL STATEMENTS

Bank Group

8

2. Analysis of Commitments and Contingencies and Impairment

As at 31.03.2021 31.12.2020 31.03.2021 31.12.2020

(Audited) (Audited)

Rs 000 Rs 000 Rs 000 Rs 000

2.1 Gross commitments and contingencies 476,655,995 484,091,555 475,072,731 479,654,442

Less: Accumulated impairment under stage 1 1,205,803 1,155,451 1,206,084 1,156,568

Accumulated impairment under stage 2 260,061 348,123 260,061 348,123

Accumulated impairment under stage 3 356,680 182,232 356,680 182,232

Net commitments and contingencies 474,833,451 482,405,749 473,249,906 477,967,519

2.2 Product-wise commitments and contingencies

Local currency

Credit related commitments & contingencies

Undrawn - direct credit facilities 137,439,118 136,712,913 134,370,316 130,606,863

Undrawn - indirect credit facilities 57,652,331 53,178,490 57,652,331 53,178,490

Acceptances 619,012 192,132 619,012 192,132

Documentary credit 388,731 856,581 388,731 856,581

Guarantees 55,388,802 50,630,134 55,395,302 50,636,634

251,487,994 241,570,250 248,425,692 235,470,700

Other commitments & contingencies

Capital commitments 1,456,815 1,299,104 2,935,853 2,961,541

Operating lease commitments 42,518 41,502 42,518 41,502

1,499,333 1,340,606 2,978,371 3,003,043

Sub total 252,987,327 242,910,856 251,404,063 238,473,743

Foreign currency

Credit related commitments & contingencies

Undrawn - direct credit facilities 26,305,533 22,463,226 26,305,533 22,463,226

Undrawn - indirect credit facilities 2,063,645 1,535,000 2,063,645 1,535,000

Acceptances 30,980,123 31,706,831 30,980,123 31,706,831

Documentary credit 32,109,693 23,957,192 32,109,693 23,957,192

Guarantees 4,343,624 3,105,524 4,343,624 3,105,524

95,802,618 82,767,773 95,802,618 82,767,773

Other commitments & contingencies

Forward exchange contracts 40,272,024 67,793,651 40,272,024 67,793,651

Currency SWAPs 87,594,026 90,619,275 87,594,026 90,619,275

127,866,050 158,412,926 127,866,050 158,412,926

Sub total 223,668,668 241,180,699 223,668,668 241,180,699

Total gross commitments and contingencies 476,655,995 484,091,555 475,072,731 479,654,442

2.3 Movement of Impairment During the Period

Bank Stage 1 Stage 2 Stage 3 Total

Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 1,155,451 348,123 182,232 1,685,806

Net charge to profit or loss 50,352 (88,062) 174,448 136,738

Write-off during the period - - - -

Other movements - - - -

Balance as at 31st March 2021 1,205,803 260,061 356,680 1,822,544

Group Stage 1 Stage 2 Stage 3 Total

Rs 000 Rs 000 Rs 000 Rs 000

Balance as at 1st January 2021 1,156,568 348,123 182,232 1,686,923

Net charge to profit or loss 49,516 (88,062) 174,448 135,902

Write-off during the period - - - -

Other movements - - - -

Balance as at 31st March 2021 1,206,084 260,061 356,680 1,822,825

9

Bank Group


3. Analysis of Deposits

As at 31.03.2021 31.12.2020 31.03.2021 31.12.2020

(Audited) (Audited)

Rs 000 Rs 000 Rs 000 Rs 000

Local Currency Deposits

Demand deposits 50,200,930 49,024,743 50,126,443 49,004,248

Saving deposits 293,402,325 265,552,863 293,249,632 265,158,008

Call deposits 47,553 148,798 47,553 148,798

Fixed deposits 438,807,372 452,056,465 455,902,599 469,245,653

Certificates of deposits 13,677,355 13,758,250 13,677,355 13,758,250

Margin deposits 2,377,239 1,625,527 2,377,239 1,625,527

Total local currency deposits 798,512,774 782,166,646 815,380,821 798,940,484

Foreign Currency Deposits

Demand deposits 5,821,456 4,940,470 5,821,456 4,940,470

Saving deposits 29,972,795 28,326,652 29,972,795 28,326,652

Fixed deposits 79,003,539 70,021,326 79,003,539 70,021,326

Margin deposits 317,813 269,807 317,813 269,807

Total foreign currency deposits 115,115,603 103,558,255 115,115,603 103,558,255

Total deposits 913,628,377 885,724,901 930,496,424 902,498,739

1.

2.

3.

4.

5. Market Price of a Share 2021 (Rs) 2020** (Rs)

53.80 119.00

250.00* 170.00

50.00 117.70

Weighted Average Market price during the quarter ended 31st March 145.87 157.84

* Highest share price of Rs 250.00 reported prior to the sub-division of shares.

** Original share price before the sub-division of shares.

6.

The Basic/Diluted Earnings per Share (EPS) and the Net Assets Value per Share of the Bank and the Group for the comparative period have been

adjusted to reflect the increased number of shares after the sub-division.


10

Bank Group

Highest Market Price during the quarter ended 31st March

Lowest Market Price during the quarter ended 31st March

Market Price as at 31st March

EXPLANATORY NOTES

There are no changes to the accounting policies and methods of computation since the publication of the annual accounts for the year 2020 other than

the item disclosed in Note 8 below.

The Group Financial Statements comprise a consolidation of the Bank and its fully owned subsidiaries, Siyapatha Finance PLC, Sampath Centre Ltd,

SC Securities (Pvt) Ltd and Sampath Information Technology Solutions Ltd.

There are no material changes during the period in the composition of assets, liabilities and contingent liabilities. All known expenditure items have

been provided for.

These interim Financial Statements are presented in accordance with Sri Lanka Accounting Standard - LKAS 34 (Interim Financial Reporting) and

provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.

Sub-division of Shares

The number of ordinary shares of the Bank was increased by way of a sub-division of shares; where by one (01) ordinary share was subdivided in to

three (03) ordinary shares. Consequently the issued number of ordinary shares was increased from 381,457,985 ordinary shares to 1,144,373,955

ordinary shares. There was no change to the stated capital subsequent to the said sub-division of shares. The sub-division of shares was based on the

shareholding as at the end of trading on 17th March 2021. The shares commenced trading on 23rd March 2021 subsequent to the sub-division.

7.

Sri Lanka Development Bonds / Sri Lanka International Sovereign Bonds

8.

9. There are no material events that took place after the reporting date which require adjustment to or disclosure in the Financial Statements other than the item disclosed in Note 10 below.

10. Debenture Issue 2021/2028

11. Dividend

12.

The funds raised via capital markets in the previous years were fully utilised for the objectives stated in the relevant prospectuses.

11

EXPLANATORY NOTES (Cont..)

Funds Raised in Previous Years

Change of the Income Tax Rate from 28% to 24%

Income tax rate applicable for the Banking sector was reduced to 24% with effect from 01st January 2020, via the IRD announcement dated 12th January 2020. Both income tax and deferred tax

provisions were calculated for the year ended 31st December 2020 at the rate of 28% on the basis that this amendment was not legally enacted in 2020.

However, as per the guideline issued by CASL on 23rd April 2021, the revised rate of 24% can be used to compute income tax and deferred tax for the period ended 31st March 2021. Accordingly,

the Bank/Group applied the revised rate of 24% and the other amendments announced by the government for the computation of both income tax & deferred tax liabilities as at 31st March 2021.

Impairment of financial assets

Loans and advances

The Central Bank of Sri Lanka, via its Circular No. 02 of 2021 dated 25th January 2021, permitted banks to apply a minimum LGD of 10% for investments in Sri Lanka government securities

denominated in foreign currency (viz. Sri Lanka Development Bonds and Sri Lanka International Sovereign Bonds). However, the Bank opted using the LGD rate of 20% without deviating from the

rate used in 2020.

The Government introduced moratorium schemes for tourism and transport sectors which were initially offered up to 31st March 2021 have been extended for a further period of six months.

Although both local and international economies have shown signs of recovery during the first quarter of 2021, the risk of Covid - 19 remains high. Many other countries including India continue to

suffer from the pandemic to a greater extent and this too will impact the local economy adversely.

Under these circumstances, Sampath Bank continued to follow its more prudent impairment models, without relaxing any of the assumptions applied in December 2020. Accordingly, for impairment

calculation purposes the Bank continued to consider customers operating in elevated risk industries, which are identified as significant increase in credit risk, under Stage 2 instead of Stage 1.

Furthermore, higher weightage applied to the worst case macro-economic scenario and the additional provision recognised on moratorium loans by way of an allowance for overlay continued to be in

force in the 1st quarter of 2021.

However, on a positive note, improved credit quality of the customers who did not opt for 2nd phase of the Covid-19 moratorium resulted in improving the stage 3 loan ratio and the impairment

provisions for the quarter ended 31st March 2021.

The Bank issued 60,000,000 Basel III Compliant - Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable 7 year debentures (2021/2028) with a Non-Viability Conversion at a pre-specified

trigger point, at the par value of Rs 100 each, to raise a sum of Rs 6,000,000,000 at an interest rate of 9%. These Debentures were oversubscribed on the first day itself (on 06th April 2021) and were

allotted on 12th April 2021.

The Shareholders of the Bank at the Annual General Meeting held on 30th March 2021 approved a first and final Cash Dividend of Rs 2.75 per share for the financial year 2020. The Bank has made

a provision of Rs 3,147 Mn for the approved final dividend in its Financial Statements as at 31st March 2021.

SAMPATH BANK PLC (ORDINARY SHARES)

TOP 20 SHAREHOLDERS AS AT 31ST MARCH 2021

Name of the Shareholder No. of shares % holding

1 Vallibel One PLC 171,117,084 14.95

2 Employees' Provident Fund 114,123,780 9.97

3 Ayenka Holdings (Pvt) Limited 111,398,166 9.73

4 Mr Y S H I Silva* 93,799,287 8.20

5 Rosewood (Pvt) Limited - Account No.1 51,595,893 4.51

6 Akbar Brothers Pvt Ltd A/C No. 1 26,307,525 2.30

7 Sri Lanka Insurance Corporation Ltd - Life Fund 25,722,027 2.25

8 Phoenix Ventures Private Limited 24,909,975 2.18

9 Employees Trust Fund Board 18,902,148 1.65

10 Sampath Bank PLC Account No. 4 (Sampath Bank Pension Fund) 11,546,646 1.01

11 Pemberton Asian Opportunities Fund 11,393,010 1.00

12 SEB AB - Tundra Sustainable Frontier Fund 9,600,000 0.84

13 BBH-Matthews Emerging Asia Fund 9,496,884 0.83

14 Citi Bank Newyork S/A Norges Bank Account 2 8,356,173 0.73

15 Jinadasa Brothers (Pvt) Ltd 6,979,989 0.61

16 Mellon Bank N A - Acadian Frontier Markets Equity Fund 6,266,361 0.55

17 Mr K A S R Nissanka 5,221,026 0.46

18 Mr B A Mahipala 5,141,805 0.45

19 Mellon Bank N A - UPS Group Trust 4,655,274 0.41

20 SSBT-AL Mehwar Commercial Investments L.L.C. 4,484,895 0.39

721,017,948 63.01

Shares held by Directors 2,000,117 0.17

Balance held by other shareholders 421,355,890 36.82

Total 1,144,373,955 100.00

31.03.2021

Number of public shareholders 30,393

Percentage of public holding 90.62%

Float Adjusted Market Capitalization Rs 56 Bn

12

*Mr Rushanka Silva, the Managing Director of Indra Traders (Pvt) Ltd, was appointed as a Non Executive, Non Independent Director of

the Bank with effect from 01st September 2017. Accordingly the shareholding of Mr Y S H I Silva, who is the main shareholder of Indra

Traders (Pvt) Ltd, has been excluded from the public shareholding of the Bank.

As at

Bank complies with the minimum public holding requirement under option 1 of listing rules section 7.13.1 (a).

Directors' Holding in Shares of Sampath Bank PLC

Director's Name As at 31.03.2021 As at 31.12.2020

1 Mr Harsha Amarasekera - -

2 Mr Rushanka Silva - -

3 Mr Deshal de Mel - -

4 Mr D K de Silva Wijeyeratne - -

5 Ms A Nanayakkara - -

6 Dr J T V S Weerawarana - -

7 Mr Vajira Kulatilaka - -

8 Ms R K Jayawardena - -

9 Mr Vinod Hirdaramani (appointed w.e.f. 16th February 2021) 281,129 Not applicable

10 Mr M N R Fernando (Managing Director) 1,718,988 572,996

11 Mr D A de Vas Gunasekara (Group Chief Financial Officer) - -

No. of shares held

13

For the period ended 31st March 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Net interest income 2,246,293 1,936,271 5,748,866 7,452,589 2,243,551 1,442,461 - - - - 10,238,710 10,831,321

Net fee & commission income 564,118 501,312 2,122,363 1,822,091 197,248 11,740 - - - - 2,883,729 2,335,143

Net gain from trading - - - - (397,939) (664,121) - - - - (397,939) (664,121)

Net gain on derecognition of financial assets - - - - 67,984 39,596 - - - - 67,984 39,596

Net other operating income 11 15 325,123 282,674 1,068,321 1,282,756 16,429 14,906 1,568,431 832,595 2,978,315 2,412,946

Total revenue from external customers 2,810,422 2,437,598 8,196,352 9,557,354 3,179,165 2,112,432 16,429 14,906 1,568,431 832,595 15,770,799 14,954,885

Inter segment (expense)/income (74,754) (63,423) 105,396 89,615 - - 181,219 150,573 (211,861) (176,765) - -

Total operating income 2,735,668 2,374,175 8,301,748 9,646,969 3,179,165 2,112,432 197,648 165,479 1,356,570 655,830 15,770,799 14,954,885

Less :Impairment charge 997,883 1,538,086 508,853 3,623,024 70,579 37,153 2,474 5,255 - - 1,579,789 5,203,518

Net operating income 1,737,785 836,089 7,792,895 6,023,945 3,108,586 2,075,279 195,174 160,224 1,356,570 655,830 14,191,010 9,751,367

Less : Total operating expenses 108,132 104,759 3,313,947 3,103,564 117,031 54,905 111,754 101,360 2,371,133 2,182,865 6,021,997 5,547,453

Segment result 1,629,653 731,330 4,478,948 2,920,381 2,991,555 2,020,374 83,420 58,864 (1,014,563) (1,527,035) 8,169,013 4,203,914

Less: Value added tax on financial services 1,449,621 902,505

Less: Income tax expenses 1,616,817 625,163

Profit for the period 5,102,575 2,676,246

Non controlling interest - -

Profit attributable to equity holders of the Bank 5,102,575 2,676,246

As at 31st March 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020


Segment assets 354,151,824 353,344,862 460,758,303 444,075,873 346,381,179 188,103,609 7,442,931 7,450,580 (9,579,341) (5,459,117) 1,159,154,896 987,515,807

Unallocated assets - - - - - - - - 33,309,291 40,867,832 33,309,291 40,867,832

Total assets 354,151,824 353,344,862 460,758,303 444,075,873 346,381,179 188,103,609 7,442,931 7,450,580 23,729,950 35,408,715 1,192,464,187 1,028,383,639

Segment liabilities 64,306,348 63,859,447 872,900,637 717,888,309 25,891,672 8,368,835 2,562,855 2,811,781 (6,456,513) (1,922,538) 959,204,999 791,005,834

Unallocated liabilities - - - - - - - - 116,809,632 123,384,926 116,809,632 123,384,926

Total liabilities 64,306,348 63,859,447 872,900,637 717,888,309 25,891,672 8,368,835 2,562,855 2,811,781 110,353,119 121,462,388 1,076,014,631 914,390,760

For the period ended 31st March 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020


Cash flows from operating activities (2,288,708) 4,752,086 28,329,466 3,264,387 (141,032) (4,079,183) 92,860 108,669 (2,734,215) 3,681,282 23,258,371 7,727,241

Cash flows from investing activities - - - - (28,867,343) 8,426,631 (142,482) (149,716) (237,524) (598,599) (29,247,349) 7,678,316

Cash flows from financing activities - - (810,754) (366,017) - - (29,193) (379,773) 150,034 616,131 (689,913) (129,659)

Capital expenditure - - (97,509) (124,413) - - (180,197) (172,838) (114,383) (249,311) (392,089) (546,562)

Segment Information - Group

14

TotalCorporate Banking Retail & Personal Banking Dealing/Investment Other (Eliminations)/Unallocated

Bank - As at 31st March 2021

Fair value

through Profit or

Loss

Amortised Cost

Fair Value

through Other

Comprehensive

Income

Total

Rs 000 Rs 000 Rs 000 Rs 000

Cash & cash equivalents - 24,589,110 - 24,589,110

Balances with Central Bank of Sri Lanka - 13,944,696 - 13,944,696

Placements with banks - 729,208 - 729,208

Reverse repurchase agreements - 2,416,743 - 2,416,743

Derivative financial instruments 1,192,744 - - 1,192,744

Financial assets recognised through profit or loss - measured at fair value 8,830,315 - - 8,830,315


- loans & advances - 739,671,011 - 739,671,011

- debt & other instruments - 306,872,950 - 306,872,950

Financial assets - fair value through other comprehensive income - - 23,607,444 23,607,444

Other assets - 6,279,367 - 6,279,367

Total Financial Assets 10,023,059 1,094,503,085 23,607,444 1,128,133,588

Rs 000 Rs 000 Rs 000

Due to banks - 1,228,913 1,228,913

Derivative financial instruments 1,371,890 - 1,371,890

Securities sold under repurchase agreements - 9,794,022 9,794,022


- due to depositors - 913,628,377 913,628,377

- due to other borrowers - 51,217,365 51,217,365

- due to debt securities holders - 30,256,991 30,256,991

Dividend payable - 3,267,457 3,267,457

Other liabilities - 16,524,893 16,524,893

Total Financial Liabilities 1,371,890 1,025,918,018 1,027,289,908

Bank - As at 31st December 2020 (Audited)

Fair value

through Profit or

Loss

Amortised Cost

Fair Value

through Other

Comprehensive

Income

Total

Rs 000 Rs 000 Rs 000 Rs 000



Placements with banks - 3,228,166 - 3,228,166





- loans & advances - 720,215,247 - 720,215,247



Other assets - 4,772,493 - 4,772,493


Rs 000 Rs 000 Rs 000

Due to banks - 1,522,402 1,522,402







Dividend payable - 121,270 121,270


Total Financial Liabilities 2,030,947 985,068,241 987,099,188

ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS

15

Financial Assets

Financial Liabilities Amortised Cost TotalFair value through

Profit or Loss

Financial Assets

Financial LiabilitiesFair value through

Profit or Loss Amortised Cost Total

Group - As at 31st March 2021

Fair value

through Profit or

Loss

Amortised Cost

Fair Value

through Other

Comprehensive

Income

Total

Rs 000 Rs 000 Rs 000 Rs 000



Placements with banks - 729,208 - 729,208





- loans & advances - 772,688,738 - 772,688,738



Other assets - 7,079,778 - 7,079,778


Financial Liabilities

Fair value

through Profit or

Loss

Amortised Cost Total

Rs 000 Rs 000 Rs 000

Due to banks - 1,228,913 1,228,913







Dividend payable - 3,267,457 3,267,457



Group - As at 31st December 2020 (Audited)

Fair value

through Profit or

Loss

Amortised Cost

Fair Value

through Other

Comprehensive

Income

Total

Rs 000 Rs 000 Rs 000 Rs 000



Placements with banks - 3,228,166 - 3,228,166





- loans & advances - 752,437,782 - 752,437,782



Other assets - 5,383,794 - 5,383,794



Fair value

through Profit or

Loss

Amortised Cost Total

Rs 000 Rs 000 Rs 000

Due to banks - 1,523,333 1,523,333







Dividend payable - 121,270 121,270



ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS

16

Financial Assets

Financial Assets

Financial Assets & Liabilities Measured at Fair Value - Fair Value Hierarchy

Bank

Date of valuation

Quoted Prices

in Active

Markets

Significant

Observable

Inputs

Significant

Unobservable

Inputs

Quoted Prices

in Active

Markets

Significant

Observable

Inputs

Significant

Unobservable

Inputs

(Level 1)

Rs 000

(Level 2)

Rs 000

(Level 3)

Rs 000

Rs 000

(Level 1)

Rs 000

(Level 2)

Rs 000

(Level 3)

Rs 000

Rs 000

Financial assets measured at fair value

Derivative financial instruments - 1,192,744 - 1,192,744 - 2,186,515 - 2,186,515

8,830,315 - - 8,830,315 9,313,628 - - 9,313,628

23,573,006 - 34,438 23,607,444 24,203,454 - 34,349 24,237,803

Total financial assets measured at fair value 32,403,321 1,192,744 34,438 33,630,503 33,517,082 2,186,515 34,349 35,737,946

Financial liabilities measured at fair value


Total financial liabilities measured at fair value - 1,371,890 - 1,371,890 - 2,030,947 - 2,030,947

Group

Date of valuation

Quoted Prices

in Active

Markets

Significant

Observable

Inputs

Significant

Unobservable

Inputs

Quoted Prices

in Active

Markets

Significant

Observable

Inputs

Significant

Unobservable

Inputs

(Level 1)

Rs 000

(Level 2)

Rs 000

(Level 3)

Rs 000

Rs 000

(Level 1)

Rs 000

(Level 2)

Rs 000

(Level 3)

Rs 000

Rs 000

Financial assets measured at fair value


8,830,315 - - 8,830,315 9,313,628 - - 9,313,628

23,573,006 - 34,494 23,607,500 24,203,454 - 34,405 24,237,859

Total financial assets measured at fair value 32,403,321 1,192,744 34,494 33,630,559 33,517,082 2,186,515 34,405 35,738,002

Financial liabilities measured at fair value


Total financial liabilities measured at fair value - 1,371,890 - 1,371,890 - 2,030,947 - 2,030,947

Financial assets - fair value through profit or loss

Financial assets - fair value through other comprehensive income

17

Financial assets- fair value through profit or loss

Financial assets - fair value through other comprehensive income

As at 31.03.2021 As at 31.12.2020

Fair Value Measurement Using Total Fair Value Measurement Using Total

FAIR VALUE OF FINANCIAL INSTRUMENTS

(c ) Level 3 – Valuation technique with significant unobservable inputs

All financial assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, as described below.

(a) Level 1 – Quoted market price (unadjusted)

(b) Level 2 – Valuation technique using observable inputs

When available, the Bank measures the fair value of financial instruments using quoted market prices in an active market. Accordingly, quoted equity securities and Sri Lanka International Sovereign Bonds have been valued using quoted

market prices as at the reporting date, while the fair values of treasury bills and bonds have been derived using the yield curves published by the Central Bank of Sri Lanka.

If a market for a financial instrument is not active, then the Bank measures fair value of such instruments by using quoted prices for similar assets and liabilities in active markets or quoted prices for identical/similar assets and liabilities in

inactive markets or using models where all significant inputs are observable. The Bank has used the spot and forward premiums available as at the reporting date to estimate the fair value of derivative financial instruments. Fair values of

financial assets and financial liabilities carried at amortised cost have been estimated by comparing the interest rates when they were first recognised with the current market rates of similar instruments.

Assets and liabilities valued using valuation techniques where one or more significant inputs are unobservable.

As at 31.03.2021 As at 31.12.2020

Fair Value Measurement Using Total Fair Value Measurement Using Total

There are no material changes in the fair value of financial assets categorised under Level 3 compared to the values reported as at 31st December 2020. The Bank has not changed the valuation models and assumptions used to measure the fair

values of Level 3 financial instruments during the period ended 31st March 2021.

Fair Value of Financial Assets and Liabilities Carried at Amortised Cost

Bank

Date of valuation

Level 1

Rs 000

Level 2

Rs 000

Level 3

Rs 000

Total

Rs 000

Level 1

Rs 000

Level 2

Rs 000

Level 3

Rs 000

Total

Rs 000

Financial Assets


loans & advances - 741,798,593 - 741,798,593 739,671,011 - 723,772,058 - 723,772,058 720,215,247

debt & other instruments 226,529,428 78,656,134 - 305,185,562 306,872,950 195,385,320 77,786,548 - 273,171,868 275,091,572

226,529,428 820,454,727 - 1,046,984,155 1,046,543,961 195,385,320 801,558,606 - 996,943,926 995,306,819



- 535,856,436 - 535,856,436 531,488,266 - 540,480,570 - 540,480,570 535,836,041

- 51,217,365 - 51,217,365 51,217,365 - 49,052,595 - 49,052,595 49,052,595

due to debt securities holders - 32,013,636 - 32,013,636 30,256,991 - 32,810,449 - 32,810,449 30,790,007

- 619,087,437 - 619,087,437 612,962,622 - 622,343,614 - 622,343,614 615,678,643

Group

Date of valuation

Level 1

Rs 000

Level 2

Rs 000

Level 3

Rs 000

Total

Rs 000

Level 1

Rs 000

Level 2

Rs 000

Level 3

Rs 000

Total

Rs 000

Financial Assets


loans & advances - 778,565,354 - 778,565,354 772,688,738 - 759,987,497 - 759,987,497 752,437,782

debt & other instruments 226,564,300 78,656,134 - 305,220,434 306,907,705 195,419,929 77,786,548 - 273,206,477 275,125,717

226,564,300 857,221,488 - 1,083,785,788 1,079,596,443 195,419,929 837,774,045 - 1,033,193,974 1,027,563,499



- 553,839,634 - 553,839,634 548,583,493 - 558,795,729 - 558,795,729 553,025,229

due to other borrowers - 58,306,310 - 58,306,310 58,302,970 - 56,885,151 - 56,885,151 56,871,506

due to debt securities holders - 38,408,284 - 38,408,284 36,267,743 - 39,551,242 - 39,551,242 37,078,483

- 650,554,228 - 650,554,228 643,154,206 - 655,232,122 - 655,232,122 646,975,218

There were no material transfers between levels of fair value hierarchy during the period.

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Placements with banks

Reverse repurchase agreements

Other financial assets

due to depositors - fixed & certificate of deposits

The following table lists those financial instruments for which their carrying amounts are a reasonable approximation of fair values because, for example, they are short term in nature or re-priced to current market rates frequently.

Assets

Cash & cash equivalents

Balances with Central Bank of Sri Lanka

Liabilities

Due to banks

Securities sold under repurchase agreements

Savings, demand, call & margin deposits

Dividend payable

Other financial liabilities

due to depositors - fixed & certificate of deposits

due to other borrowers

As at 31.03.2021 As at 31.12.2020

Fair Value Fair Value

As at 31.03.2021 As at 31.12.2020

Fair Value Fair ValueCarrying

Value

Rs 000

Carrying

Value

Rs 000

Carrying

Value

Rs 000

Carrying

Value

Rs 000

FAIR VALUE OF FINANCIAL INSTRUMENTS (Contd…)

(a) Market Values

2021 2020 2021 2020 2021 2020

Fixed - 12.75% N/T 101.28 N/T 100.00 N/T 101.28

Floating rate N/T N/T N/T N/T N/T N/T

N/T - Not Traded

2021 2020 2021 2020 2021 2020

Fixed - 12.50% N/T N/T N/T N/T N/T N/T

N/T - Not Traded

2021 2020 2021 2020 2021 2020


N/T - Not Traded

2021 2020 2021 2020 2021 2020


N/T - Not Traded

(b) Interest Rates

Coupon rate Effective rate Coupon rate Effective rate

Fixed - 12.75% 12.75% 12.75% 12.75% 12.75%

Floating rate


Fixed - 12.50% 12.50% 12.89% 12.50% 12.89%


Fixed - 12.50% 12.50% 12.89% 12.50% 12.89%


Fixed - 13.90% 13.90% 13.90% 13.90% 13.90%

Note 01

Debentures - 2016/2021

DEBENTURE INFORMATION

Debentures - 2016/2021Highest (Rs) Lowest (Rs) Quarter End (Rs)



19

Highest (Rs) Lowest (Rs) Quarter End (Rs)Debentures - 2019/2024


2021 2020

Note 01


2021 2020


2021 2020

Floating rate is equivalent to the six month gross treasury bill rate plus 1.00 % p.a. payable semi annually.


2021 2020

(c) Interest Rate of Comparable Government Securities

2021 2020

3 Month Treasury Bill 5.05% 6.80%

6 Month Treasury Bill 5.10% 7.10%

5 Year Treasury Bond 7.05% 9.29%

(d) Current Yield & Yield to maturity

2021 2020 2021 2020

N/T 12.59% N/T N/T

N/T 11.50% N/T N/T

N/T - Not Traded

2021 2020

N/T N/T

N/T N/T

N/T - Not Traded

2021 2020

N/T N/T

N/T N/T

N/T - Not Traded

2021 2020

N/T N/T

N/T N/T

N/T - Not Traded

(e) Ratios - Bank

31.03.2021 31.12.2020

36.4% 37.0%

8.9 4.0

89.0% 89.5%

DEBENTURE INFORMATION (Cont ..)


Fixed Floating

12.75%

Current yield

Yield to maturity of last trade


Fixed

12.50%



Fixed

12.50%

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Current yield


Debt to Equity Ratio (%)

Interest Cover (Times)

Quick Asset Ratio (%) (as per CBSL Return)


Fixed

13.90%

Current yield


Current yield

Item As At

31.03.2021

As At

31.12.2020

As At

31.03.2021

As At

31.12.2020

Regulatory Capital (Rs 000)

Common Equity Tier 1 Capital 93,610,461 96,001,662 99,195,985 101,544,273

Tier 1 Capital 93,610,461 96,001,662 99,195,985 101,544,273

Total Capital 114,035,595 117,233,143 120,110,308 123,249,506

Regulatory Capital Ratios (%)

Common Equity Tier 1 Capital Ratio 12.94 13.44 12.90 13.40

(Minimum Requirement: 2021 - 6.5%, 2020 - 6.5%)

Tier 1 Capital Ratio 12.94 13.44 12.90 13.40(Minimum Requirement: 2021 - 8.0%, 2020 - 8.0%)

Total Capital Ratio 15.76 16.41 15.62 16.26

(Minimum Requirement: 2021 - 12.0%, 2020 - 12.0%)

Leverage Ratio % (Minimum Requirement - 3%) 6.69 6.94 6.89 7.13

As At

31.03.2021

As At

31.12.2020

Assets Quality (Quality of Loan Portfolio)

Gross Non - Performing Advances Ratio, % (Net of Interest in Suspense) 5.92 6.30

Net Non - Performing Advances Ratio, % (Net of Interest in Suspense and

Provision) * 2.91 3.45

Profitability

Interest Margin, % 3.35 3.30

Return on Assets (Before Tax), % 2.19 1.09

Return on Equity (After Tax), % 16.97 7.58

Regulatory Liquidity

Statutory Liquid Assets (Rs 000) 364,696,809 344,888,261

Statutory Liquid Assets Ratio (Minimum Requirement - 20%)

Domestic Banking Unit (%) 35.82 34.98

Off-Shore Banking Unit (%) 33.12 37.60

Total Stock of High-Quality Liquid Assets (Rs 000) 262,483,144 240,115,531

Liquidity Coverage Ratio (%) - Rupee

(Minimum Requirement: 2021 - 90%, 2020 - 90%) 377.78 424.90

Liquidity Coverage Ratio (%) - All Currency

(Minimum Requirement: 2021 - 90%, 2020 - 90%) 234.98 293.37

Net Stable Funding Ratio (%)

(Minimum Requirement: 2021 - 90%, 2020 - 90% ) 146.58 144.00

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SELECTED PERFORMANCE INDICATORS (AS PER REGULATORY REPORTING)

Bank Group

Bank

* Net Non-performing Advances Ratio is calculated based on the CBSL requirement after deducting CBSL provisions.

SAMPATH BANK PLC

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