Sampath Bank achieved a Profit After Tax of Rs. 16.6 billion in the first half of 2026, up 13% year-on-year, though impairment charges surged significantly amid economic uncertainties and loan portfolio expansion.
Sampath Bank's financial performance for the first six months of 2026 showed mixed results, with the institution recording a Profit After Tax of Rs. 16.6 billion, representing a 13% increase from the same period in 2025. The bank attributed this growth to strong revenue generation across multiple income streams, with Total Operating Income reaching Rs. 63.3 billion, a 17% increase year-on-year.
Revenue expansion was driven primarily by Net Interest Income, which grew 11% to Rs. 42.8 billion, and a notable 26% jump in Net Fee and Commission Income to Rs. 12.2 billion. The bank's loan portfolio expanded substantially, increasing by Rs. 226 billion or 18% to reach Rs. 1.449 trillion by June 30. According to the bank, this growth reflected improvements in credit origination processes and enhanced risk management practices.
However, the bank faced significant headwinds in the form of rising impairment charges, which escalated sharply to Rs. 5 billion from Rs. 1.2 billion a year earlier—a 324% increase. The bank attributed this rise to portfolio expansion and additional provisions made in response to geopolitical and macroeconomic uncertainties. Operating expenses also climbed 21% as the bank invested in technology, human resources, and business expansion, pushing the Cost-to-Income Ratio to 41.7% from 40%.
Performance improved notably in the second quarter, with Profit After Tax increasing 69% from the first quarter, aided by an 89% reduction in impairment charges and an impairment reversal exceeding Rs. 3 billion following loan recoveries. The bank maintained capital and liquidity above regulatory requirements and successfully issued a Rs. 10 billion Basel III-compliant Green Bond in July.
