The Sampath Group has achieved its most successful financial performance to date, reporting a Profit Before Tax (PBT) of Rs 53.0 billion and a Profit After Tax (PAT) of Rs 32.6 billion. This marks a year-on-year increase of 8% and 13%, respectively. Furthermore, the Group’s total asset base surpassed Rs 2 trillion in 2025, reflecting a 12% growth compared to the end of 2024.

The Bank itself also reported record profitability for the financial year ending December 31, 2025, with a PBT of Rs 49.3 billion and a PAT of Rs 30.2 billion, showing year-on-year growth of 5% and 11%, respectively. When adjusted for the additional profit from the 2024 restructuring of the Sri Lanka International Sovereign Bonds, both PBT and PAT growth rates were even more impressive at 22%. The Bank reached a significant milestone in 2025, with its gross loan book expanding by Rs 259 billion to reach Rs 1.2 trillion by the end of the year, compared to Rs 965 billion in 2024, reflecting strong year-on-year growth of 27%.

Key Financial Highlights for the Year Ended December 31, 2025:

• A first and final cash dividend of Rs 10.30 per share was declared, an increase of Rs 0.95 per share compared to the previous year.
• Return on Equity (ROE) rose to 17.93% in 2025, compared to 17.74% in 2024.
• Lending momentum accelerated since August 2025, with average monthly growth of Rs 36.5 billion.
• Improved credit quality was evidenced by reductions in both Stage 2 and Stage 3 loans.
• Both capital and operating expenditure increases aligned with the Bank’s long-range strategic initiatives for future growth acceleration.
• The total tax charge exceeded Rs 33 billion, resulting in an effective tax rate (ETR) of 52.3%.
• The Bank’s Tier 1 and Total Capital Adequacy Ratios stood at 14.75% and 17.65%, respectively, comfortably exceeding regulatory minimums and reinforcing a solid capital position.

Gross Income

In 2025, the Bank’s gross income reached Rs 218.8 billion, reflecting a year-on-year growth of 12%, supported by contributions from interest income, fee-based income, and other income streams.

Fund-Based Income

For the year ending December 31, 2025, total interest income was Rs 181.1 billion, a decline of 1% compared to 2024, primarily due to a lower Average Weighted Prime Lending Rate (AWPLR) and reduced interest rates on government securities. In response, the Bank redirected funds previously invested in government securities into its lending portfolio. Interest expenditure increased marginally due to growth in deposit and borrowing portfolios, resulting in Net Interest Income (NII) of Rs 77.8 billion for the year, a 3% decrease compared to the previous year. The Net Interest Margin (NIM) contracted by 79 basis points, declining from 4.90% in 2024 to 4.11% in 2025, due to lower yields on the investment portfolio and reductions in the AWPLR.

Non-Fund Based Income

Net fee and commission income grew by 21% in 2025, reaching Rs 21.2 billion, driven by credit growth, stronger economic activity, and greater card usage. A gain of Rs 4.0 billion was recognized from the disposal of financial assets, mainly realized in the first quarter of 2025. The Bank reported a total gain of Rs 6.5 billion under net trading and other operating income in 2025, compared to a loss of Rs 2.8 billion in 2024, driven primarily by an exchange gain following the depreciation of the LKR against the USD.

Impairment Reversal/Charge

The Bank recorded a total impairment reversal of Rs 0.6 billion during 2025, a significant reduction from the previous year. An impairment reversal of Rs 1.0 billion on loans and advances was recorded in 2025. Improved customer repayment capacity and strengthened recovery efforts contributed to a reduction in Stage 2 and Stage 3 loans. The Bank also recognized an impairment charge of Rs 1.4 billion for the year, primarily due to the purchase of short-tenor PDI bonds.

Operating Expenses

Operating expenses increased by 19% year-on-year, due to incremental costs related to strategic initiatives aimed at future growth. Personnel costs rose by 10%, driven by salary increments and staff expansion. The cost-to-income ratio (CIR) rose by 170 basis points to 42.7%.

Taxation

The total tax charge increased to Rs 33.2 billion, up from Rs 32.6 billion in the previous year, with the effective tax rate marginally declining to 52.3% in 2025 compared to 54.4% in 2024.

Dividend

The Board of Directors recommended a final cash dividend of Rs 10.30 per share for 2025, subject to shareholder approval. The dividend payout ratio for the year was 39.98%.

Key Ratios

The Bank achieved improved profitability in 2025, with Return on Average Shareholders’ Equity rising to 17.93%. The Return on Average Assets declined to 2.60%, due to accelerated credit growth.

Capital and Liquidity

Despite reallocating funds from government securities to lending, the Bank maintained strong capital and liquidity ratios, exceeding regulatory requirements. As of December 31, 2025, the Bank’s CET1, Tier 1, and Total Capital ratios were 14.75%, 14.75%, and 17.65%, respectively.

Assets

Total assets grew by 11% to Rs 1.98 trillion, supported by loan portfolio expansion. Gross loans rose by Rs 259.0 billion, with technology-driven enhancements and process improvements enabling higher lending volumes.

Liabilities

Total liabilities increased by 12% to Rs 1.80 trillion, driven by growth in the deposit portfolio.

Group Expansion

The Bank owns four subsidiaries and established a new wealth management company in January 2026, awaiting regulatory approval.

Driving a Sustainable Future for Sri Lanka

Sampath Bank continues to lead in sustainability with its “Wewata Jeewayak” project and other environmental initiatives. The Bank has integrated sustainability principles into its strategy, promoting long-term value and environmental protection. Sampath Bank also contributed to green finance with a Green Fixed Deposit and supported national recovery efforts following Cyclone Ditwah.