Sampath Bank achieved a Profit After Tax of Rs 16.6 billion in the first half of 2026, representing 13% year-on-year growth, driven by expanded lending and strong operating income despite significantly higher impairment provisions.

Sampath Bank posted robust financial results for the six months ended 30 June 2026, with Total Operating Income reaching Rs 63.3 billion, up 17% compared to the same period last year. The bank's core revenue streams demonstrated resilience, with Net Interest Income increasing 11% to Rs 42.8 billion and Net Fee and Commission Income surging 26% to Rs 12.2 billion. Additionally, foreign exchange-related earnings rose substantially by 198% to Rs 7.2 billion, primarily reflecting depreciation of the Sri Lankan rupee against the US dollar and increased transaction volumes.

The bank's earnings growth was tempered by a significant rise in impairment charges, which jumped 324% year-on-year to Rs 5.0 billion compared with Rs 1.2 billion in the corresponding 2025 period. According to the bank's financial disclosures, this increase was driven by collective impairment provisions linked to the bank's aggressive loan portfolio expansion of 18% and a prudent provisioning strategy adopted in response to ongoing geopolitical uncertainties and macroeconomic challenges. Despite these higher provisions, the bank's Net Operating Income grew a more modest 10%.

Profitability remained resilient with Profit After Tax of Rs 16.6 billion for the half-year period, reflecting 13% growth. The bank's loan portfolio expanded by Rs 226 billion to Rs 1,449 billion, supported by enhancements to credit origination frameworks and governance structures. Operating expenses increased 21% due to workforce expansion, technology investments, and salary revisions, pushing the Cost-to-Income Ratio to 41.7% from 40.0% previously. The bank maintained strong capital ratios above regulatory minimums and issued a Rs 10 billion Basel III-compliant Green Bond in July 2026, which was oversubscribed.

On a quarter-on-quarter basis, the bank demonstrated stronger momentum, with Profit After Tax increasing 69% in the second quarter compared to the first, driven by a 22% surge in Total Operating Income and an 89% reduction in impairment charges. This improvement was aided by impairment reversals exceeding Rs 3 billion from successful recovery of long-outstanding loans. The parent Sampath Group reported a Profit After Tax of Rs 17.9 billion for the half-year period.