Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය

Latest topics

» CIFL ANY NEWS
by kjojo Yesterday at 12:15 pm

» HVA - Game changer! High profits this quarter!!!!!
by Captain Yesterday at 11:39 am

» JACKPOT for LDEV share holders
by sanjulanka Yesterday at 10:59 am

» Meka Mahinda Rajapaksege Wadak
by Yahapalanaya Yesterday at 8:20 am

» CFT share එක මොනව හරි දෙයක් වෙනව වාගෙ.
by sameboy Yesterday at 6:10 am

» Foreign Investment
by bushra03 Wed Nov 22, 2017 11:54 pm

» best stocks to buy now
by Ryan Hudson Wed Nov 22, 2017 10:26 pm

» BFN .. ORIENT FINANCE PLC
by rasikagamage Wed Nov 22, 2017 1:58 pm

» RENUKA CAPITAL PLC (KZOO.N0000)
by Namal Wed Nov 22, 2017 1:15 pm

» WATCHOUT CITRUS GROUP SHARES
by Eugine Fernando Wed Nov 22, 2017 10:47 am

» Jackpot For LDEV share holders
by bushra03 Tue Nov 21, 2017 6:07 pm

» LLMP -වාර්තාව හොඳ නැත
by max shanu Tue Nov 21, 2017 9:01 am

» CFVF will HIT. 40 BY Next. Thursday
by sanjulanka Mon Nov 20, 2017 11:45 pm

» MULL trade up possibilities
by Hewagak Mon Nov 20, 2017 8:48 pm

» GROUP LEASE PUBLIC COMPANY LIMITED vs COCR
by TARGET Mon Nov 20, 2017 6:21 pm

» Commercial Credit COCR and Group Lease Deal Pricing story
by kjojo Mon Nov 20, 2017 3:10 pm

» HEXP N.0000
by chathura Mon Nov 20, 2017 11:26 am

» CFT 7+...........today
by max shanu Mon Nov 20, 2017 11:10 am

» GRANN - Gonna fly
by prasa2004 Mon Nov 20, 2017 8:55 am

» Any News on JINS???
by prasa2004 Mon Nov 20, 2017 8:51 am

» Watch DFCC and NDB and guess which one is best
by Small Investor Sun Nov 19, 2017 10:28 am

» is KFP good to buy
by Fayaz_2017 Fri Nov 17, 2017 4:19 pm

» Plantation stocks
by anjelo Fri Nov 17, 2017 3:43 pm

» Good News - Watch ( VFIN , LFIN , CFIN, SAMP,LOFC)
by Harry82 Thu Nov 16, 2017 9:10 pm

» Avoid investing in Abans Group company shares
by fortuneteller Thu Nov 16, 2017 8:55 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sampath Bank PLC - A giant awakening

Sampath Bank PLC - A giant awakening

Go to page : 1, 2  Next

View previous topic View next topic Go down  Message [Page 1 of 2]

1 Sampath Bank PLC - A giant awakening on Tue Aug 02, 2016 11:07 pm

EquityChamp

avatar
Moderator
Thought of talking a bit of this stock. It has recorded an EPS of 30.5 and 38.4 in FY 2014 & 2015 but traded around Rs230 - Rs240 most of the time. For some reason the earnings have not been properly reflected on the stock price may be due to subdued market conditions.

On the back of this the bank has recorded significant growth in revenue as well as profits in 1H of FY 2016. Based on my assumptions for 2H I worked out a forecast for the FY 2016 as follows.
 201420152016 F
NII  16,781   18,550      23,353
Net fee & commision income    4,259     5,417        6,296
Net operating income  22,606   26,742      32,555
Total operating expenses  12,180   13,962      15,978
PBT    7,247     9,790      12,719
PAT    5,268     6,628        9,388
EPS30.5538.44       53.04
Share price    236.0     248.0        243.8
NAV       179        204 267
This stock will report astonishing earnings growth in excess of 40% this year on the back of interest income growth of 26%.

In terms of valuations the stock is trading @ a forward PE of 4.6x @ todays CMP of 243.8. If just compare with the average PE and PBV ratios clocked by this stock for the last two years the share should adjust to at least Rs357/- in the coming months.

Therefore a clear appreciation potential by at least 40% is visible to me. My advise for you is not to sell your Sampath @ these levels but BUY it now for a two quarter period investment. Sampath will deliver you a great result.

Good luck

2 Re: Sampath Bank PLC - A giant awakening on Wed Aug 03, 2016 12:44 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Subdued market forced investors to sell off SAMP share at discounted price. Some sold at loss, break even & for a small margin. Small investors suffered a lot. Considering the operational performance even buying SAMP now would accumulate adequate profit % from mid to long term. Remarkable progress in coming 3rd quarter would be more enthusiastic. Flourishing business activities always produce high dividend yield that attract potential buyers.

3 Re: Sampath Bank PLC - A giant awakening on Wed Aug 03, 2016 4:47 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@EC
NII forecast for 2016 is about 26% over 2015. Two more quarters to go. More business opportunities to be arisen in the rest of the year may easily slap the % targeted. Besides introduction of competitive innovative products in the market would attract more business circles & a share from new constructions activities coming up.
Nevertheless, price movement in the past lose velocity indicating no keen shown by high end investors so far....

4 Re: Sampath Bank PLC - A giant awakening on Wed Aug 24, 2016 11:27 pm

EquityChamp

avatar
Moderator
You can see the awakening of the giant very slowly. Today closing @ 256. Its value more than 350/- for me.
Thanks

5 Re: Sampath Bank PLC - A giant awakening on Wed Aug 31, 2016 9:42 pm

EquityChamp

avatar
Moderator
253/- now still going at snail's pace. But don't forget the time will come to realize hefty gains. Still the stock hasn't move at least 10% of what it should have been.

6 Re: Sampath Bank PLC - A giant awakening on Wed Aug 31, 2016 9:57 pm

samaritan


Vice President - Equity Analytics
Vice President - Equity Analytics
EPS (last 04qtrs) = 44/68

last qtr (alone) eps = 14/16

PE = 5.7  NAV = 239/=

Fundamentally a strong share with tremendous growth potential.

7 Re: Sampath Bank PLC - A giant awakening on Thu Sep 01, 2016 6:57 pm

Teller

avatar
Moderator
Day by day Sampath is appreciating . this is a nice share to study ..

8 Re: Sampath Bank PLC - A giant awakening on Fri Sep 02, 2016 12:31 am

stoka


Senior Equity Analytic
Senior Equity Analytic
Director is selling big time August 2016.

9 Re: Sampath Bank PLC - A giant awakening on Fri Sep 02, 2016 10:22 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I guess real appreciation of SAMP erupts by mid of November other than slow progress in super month September. If directors are selling at this time there must be a special point. Many disposed SAMP holdings around Rs.230/. New 52 week high price is to be recorded in next week.

10 Re: Sampath Bank PLC - A giant awakening on Fri Sep 02, 2016 11:51 am

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Well, share trades made by newly appointed company directors are no guide whatsoever to the health of a company. They are an act of faith rather than a sign of conviction. New joiners often feel compelled to buy. 
Similarly, the exercise of share options serves no purpose as a buy or sell signal as the influences behind these transactions are rarely aligned to the performance of a business. More likely, the trade is dictated by the vesting date of the options. 

11 Re: Sampath Bank PLC - A giant awakening on Tue Sep 06, 2016 3:54 pm

kassachandi


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
255 is a massive discount price to collect this tremendous growth bank. Note SAMP will deliver a monster EPS of more than 45. This will suddenly shoot up to 275 and then march towards 300+ . SAMP earnings will only get better with their new banking innovations. You can gain risk free profit of more 10% even,in short term if you buy SAMP @current cmp

12 Re: Sampath Bank PLC - A giant awakening on Wed Sep 21, 2016 9:42 am

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
Continuous foreign buying in this giant banker SAMP

13 Re: Sampath Bank PLC - A giant awakening on Mon Sep 26, 2016 10:57 am

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
SAMP has surely broken its ressistance at 260 next short term stop is @270

14 Re: Sampath Bank PLC - A giant awakening on Mon Sep 26, 2016 2:59 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
SAMP has reached to 52 week high Rs.261.

FT analysis suggests to buy.

15 Re: Sampath Bank PLC - A giant awakening on Mon Sep 26, 2016 3:01 pm

Lucky Gamage

avatar
Manager - Equity Analytics
Manager - Equity Analytics
BLI will announce Rs 4/- Dividend on 29th Sep'16  AGM Date on 29th Sep'16

16 Re: Sampath Bank PLC - A giant awakening on Mon Sep 26, 2016 3:03 pm

Lucky Gamage

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Correct information to Forum members... not like blood suckers...

17 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 12:34 pm

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
SAMP just cleared 265. Oh going faster than i thought. Another super quater earnings to come and this will be touching 300 in no time

18 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 12:40 pm

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Yes for sure

19 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 12:58 pm

EquityChamp

avatar
Moderator
Remember my valuation. Those are never fortune telling.

20 IS YOUR FATHER THE CHAIRMAN OF BLI??? on Wed Sep 28, 2016 1:15 pm

ruwan326

avatar
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Lucky Gamage wrote:BLI will announce Rs 4/- Dividend on 29th Sep'16  AGM Date on 29th Sep'16
 


DIVIDEND ANNOUNCEMENT   
27 April 2016
Date of Announcement: - 27.Apr.2016
Rate of Dividend: - Rs. 1.50 per share (Subject to dividend tax of 10%) /Interim Dividend
Financial Year: - 2015/2016
XD: - 09.May.2016
Payment: - 16.May.2016
Share Transfer Book Open
...................
With in 4months dividend again Very Happy Very Happy Very Happy Very Happy Very Happy

21 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 2:24 pm

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
yeah EC



Last edited by kassachandimal on Wed Sep 28, 2016 2:26 pm; edited 1 time in total

22 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 2:25 pm

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
Some good volumes changing hands in SAMP

23 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 5:35 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
SAMP holders will be showered after long drought. Two trading days are remaining. Expecting a good turn out over Rs.270/= hopefully.

24 Re: Sampath Bank PLC - A giant awakening on Wed Sep 28, 2016 6:15 pm

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
I'm holding from 253 onwards Smile
Thank you EC Smile

25 Re: Sampath Bank PLC - A giant awakening on Thu Sep 29, 2016 7:16 am

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Rs 3.00 or Rs 5.00 up today?

26 Re: Sampath Bank PLC - A giant awakening on Thu Sep 29, 2016 10:10 am

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Needs to break 267 within today
Anyway I'm confident that this is a winning stock !

27 Re: Sampath Bank PLC - A giant awakening on Wed Oct 05, 2016 12:51 pm

kassachandimal


Manager - Equity Analytics
Manager - Equity Analytics
SAMP very active. will break 270 this week

28 Re: Sampath Bank PLC - A giant awakening on Thu Oct 06, 2016 10:24 am

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
They opened another branch in wellawatte

29 Re: Sampath Bank PLC - A giant awakening on Fri Nov 04, 2016 10:26 am

EquityChamp

avatar
Moderator
Just reemphasizing my target numbers. I estimated 9.4Bn for 2016 and as at 9Month period they have got 7Bn with Q3 figure of 2.6Bn. They are certainly going to deliver more than 9.4Bn for the FY may be it will be close to 10Bn this time. So you will remember my valuations very strongly.

Sampath bank is a giant. no doubt about that.

30 Re: Sampath Bank PLC - A giant awakening on Fri Nov 04, 2016 10:40 am

nimantha80


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Samp and other banking shares will lead the market.DFCC results amazing

31 Re: Sampath Bank PLC - A giant awakening on Fri Nov 04, 2016 5:02 pm

nimantha80


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
onna badu awa.patta results.

32 Re: Sampath Bank PLC - A giant awakening on Fri Nov 04, 2016 6:06 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Some are cashing SAMP share at low prices. Also, demand movement is dull. I guess around 65000 shares were traded today.

33 SAMP - Rs 360.00 ( 2016 target) on Sun Nov 06, 2016 9:58 pm

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
                                                                    2016        2015


Earnings per share - (Nine Months)      (Rs)   39.21                    28.75                        36.4%


Gross income                                         49,256,024              35,820,080                37.5%


Due to other customers                             491,118,021          407,163,665                 20.6%

34 Re: Sampath Bank PLC - A giant awakening on Mon Nov 07, 2016 6:08 am

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sampath Bank has achieved an impressive profit after tax (PAT) of Rs. 6.7 billion for the first nine months of 2016, up by 41.2% from a year earlier.

The bank also achieved Rs. 8.9 billion in profit before tax (PBT), recording a growth of 28.2%, as against Rs. 7.0 billion earned in the comparative period of the previous year.

The main reason for higher PAT growth compared to the PBT growth is the reversal of excess income tax provisions made in the previous years. Sampath Group, which comprises Sampath Bank and four subsidiary companies, also recorded a notable group PBT of Rs. 9.4 billion during the period under review. The Group’s PAT achievement for the period was Rs. 6.9 billion. 

Amidst several challenges such as low liquidity, higher cost of funds, volatile margins and unstable currency rates posed by the external market forces, the bank managed to achieve considerable growth in all key business pillars. 

Fund-based income (FBI)

Net Interest Income (NII), which is the main source of income representing more than 70% of the total operating income of the bank, has recorded an increase of Rs. 3.2 billion (24.3%) during the period under review. Accordingly, the bank managed to record an NII of Rs. 16.1 billion for the first nine months of 2016, as against Rs. 13.0 billion recorded in the corresponding period of 2015.

The above achievement was made possible by the strong growth recorded in the bank’s fund base, as indicated by a more than 20% growth in deposits and nearly 15% growth in advances, coupled with timely re-pricing of asset and liability products and other fund management strategies adopted by the bank.

Non fund-based income (NFBI)

Net fee and commission income, which largely comprises credit, trade, card and electronic channel-related fees, has increased to Rs. 4.7 billion in the first nine months of 2016, as opposed to Rs. 3.8 billion recorded in the same period of 2015. 

This important income source too has posted an impressive growth of 22.7%. Leveraging on credit- and trade-related segments, expansion of the credit card operation and the successful launch of innovative value additions through electronic channel offerings have considerably contributed to this growth in NFBI.

Net trading income has recorded a gain of Rs. 293.0 million for the first nine months of 2016, as against the loss of Rs. 366.9 million reported during the same period of the previous year. This was mainly due to the gain on forward exchange contracts revaluation. 

Despite the increase in all other sources of income, the bank’s other operating income recorded a contraction of 20.4% (Rs. 472.8 million) during the first three quarters of 2016, as against the corresponding period of the previous year. 

This was mainly due to a decrease in exchange income on FCY reserves revaluation and a decrease in realised exchange income. 

The main reason for the above is attributable to the slower depreciation of the rupee against the dollar in 2016 viz a viz 2015. Accordingly, other operating income by the end of the first nine months of 2016 stood at Rs 1.8 billion, as against Rs. 2.3 billion recorded for the same period of the previous year. 

Operating expenses 

The operating expenses of the bank, which stood at Rs. 9.4 billion for the first three quarters of  2015, moved up to Rs. 11.3 billion during the period under review, reflecting an increase of 19.3%. This was mainly due to the rise in personnel expenses triggered by salary increments and general price hikes, etc. However, the Cost to Income ratio excluding VAT and NBT on financial services has improved by more than 100 basis points to 49.1% during the period from 50.4% recorded in the comparative period of 2015. The achievement of a Cost to Income ratio below 50%, in spite of having one of the youngest branch networks compared to its closest competitors, is an important milestone.  

Impairment charge on loans and receivables 

Impairment charge amounting to Rs. 906.8 million recorded for the first nine months of 2016 showed an increase of Rs. 141.0 million over the previous year’s charge of Rs. 765.8 million for the same period. Impairment charge against the individually significant customers has increased by Rs. 445.1 million due to a conscious decision taken to increase the provision cover against doubtful loans. 

The collective impairment charge stood at Rs. 160.8 million for the period, which is a decline of Rs. 304.1 million compared to the charge of Rs. 464.9 million recorded for the corresponding period of 2015, due to decreased loss rates resulting from the improving credit quality of the loan book.

Business growth 

Sampath Bank, which surpassed the Rs. 600 billion mark in total assets during the period, reported a total asset base of Rs. 617.4 billion as at 30 September 2016, recording a growth of 17.5% (annualised 23.3%) over the total assets that prevailed as at 31 December 2015 (Rs. 525.3 billion). 

Gross loans and receivables grew by 14.5% during this period (annualised 19.3%) and moved up to Rs. 442.2 billion as at 30 September 2016. The total deposit base too increased by Rs. 83.0 billion, recording a notable growth of 20.3% (annualised 27.1%) and reached Rs. 492.4 billion as at the reporting date. Higher growth in the deposit base was mainly triggered by an increase in term deposits (TDs). CASA ratio recorded a decline from 47.3% as at 31 December 2015 to 39.8% as at 30 September 2016.

Performance ratios 

ROE (after tax) substantially improved and stood at 23.9% as at 30 September 2016 when compared to 18.4% recorded as at 31 December 2015, while ROA (before tax) improved to 2.1% by the end of the first nine months of 2016, as against 1.9% recorded on 31 December 2015. 

The Basic Earnings per share (group) for the first three quarters of 2016 has substantially improved and stood at Rs. 39.21 as against Rs. 28.75 recorded for the corresponding period in the previous year. This was an impressive growth of 36.4%. Statutory liquid asset ratio (SLAR) as at 30 September 2016 stood at 22.35%, showing a marginal improvement against the ratio recorded as at 31 December 2015 (22.05%). The bank managed to maintain SLAR well above the mandatory requirement of 20% throughout the period. The bank’s gross NPL ratio (1.67%) however has fractionally increased from 1.64%, recorded as at 31 December 2015. 

Capital adequacy  

The Core Capital (Tier I) and Total Capital (Tier I + Tier II) adequacy ratios, which stood at 7.90% and 12.26% respectively as at 31 December 2015, have shown a drop during the period, as a result of increase in risk weighted assets accompanied by  growth in advance portfolio and dividend paid in 2016. Accordingly, Core Capital and Total Capital adequacy ratios as at 30 September 2016 stood at 7.68% and 11.92% respectively. 

Despite the slight drop, both ratios were maintained well above the minimum regulatory requirement of 5% for Core Capital and 10% for Total Capital. With the objective of strengthening capital adequacy, the bank issued subordinated debentures amounting to Rs. 6.0 billion in June 2016 and the issue was oversubscribed on the day of opening.  - 


See more at: 


wLTJ.dpuf

nimantha80


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sampath Bank has achieved an impressive profit after tax (PAT) of Rs. 6.7 billion for the first nine months of 2016, up by 41.2% from a year earlier.

The bank also achieved Rs. 8.9 billion in profit before tax (PBT), recording a growth of 28.2%, as against Rs. 7.0 billion earned in the comparative period of the previous year.

The main reason for higher PAT growth compared to the PBT growth is the reversal of excess income tax provisions made in the previous years. Sampath Group, which comprises Sampath Bank and four subsidiary companies, also recorded a notable group PBT of Rs. 9.4 billion during the period under review. The Group’s PAT achievement for the period was Rs. 6.9 billion. 

Amidst several challenges such as low liquidity, higher cost of funds, volatile margins and unstable currency rates posed by the external market forces, the bank managed to achieve considerable growth in all key business pillars. 

Fund-based income (FBI)

Net Interest Income (NII), which is the main source of income representing more than 70% of the total operating income of the bank, has recorded an increase of Rs. 3.2 billion (24.3%) during the period under review. Accordingly, the bank managed to record an NII of Rs. 16.1 billion for the first nine months of 2016, as against Rs. 13.0 billion recorded in the corresponding period of 2015.

The above achievement was made possible by the strong growth recorded in the bank’s fund base, as indicated by a more than 20% growth in deposits and nearly 15% growth in advances, coupled with timely re-pricing of asset and liability products and other fund management strategies adopted by the bank.

Non fund-based income (NFBI)

Net fee and commission income, which largely comprises credit, trade, card and electronic channel-related fees, has increased to Rs. 4.7 billion in the first nine months of 2016, as opposed to Rs. 3.8 billion recorded in the same period of 2015. 

This important income source too has posted an impressive growth of 22.7%. Leveraging on credit- and trade-related segments, expansion of the credit card operation and the successful launch of innovative value additions through electronic channel offerings have considerably contributed to this growth in NFBI.

Net trading income has recorded a gain of Rs. 293.0 million for the first nine months of 2016, as against the loss of Rs. 366.9 million reported during the same period of the previous year. This was mainly due to the gain on forward exchange contracts revaluation. 

Despite the increase in all other sources of income, the bank’s other operating income recorded a contraction of 20.4% (Rs. 472.8 million) during the first three quarters of 2016, as against the corresponding period of the previous year. 

This was mainly due to a decrease in exchange income on FCY reserves revaluation and a decrease in realised exchange income. 

The main reason for the above is attributable to the slower depreciation of the rupee against the dollar in 2016 viz a viz 2015. Accordingly, other operating income by the end of the first nine months of 2016 stood at Rs 1.8 billion, as against Rs. 2.3 billion recorded for the same period of the previous year. 

Operating expenses 

The operating expenses of the bank, which stood at Rs. 9.4 billion for the first three quarters of  2015, moved up to Rs. 11.3 billion during the period under review, reflecting an increase of 19.3%. This was mainly due to the rise in personnel expenses triggered by salary increments and general price hikes, etc. However, the Cost to Income ratio excluding VAT and NBT on financial services has improved by more than 100 basis points to 49.1% during the period from 50.4% recorded in the comparative period of 2015. The achievement of a Cost to Income ratio below 50%, in spite of having one of the youngest branch networks compared to its closest competitors, is an important milestone.  

Impairment charge on loans and receivables 

Impairment charge amounting to Rs. 906.8 million recorded for the first nine months of 2016 showed an increase of Rs. 141.0 million over the previous year’s charge of Rs. 765.8 million for the same period. Impairment charge against the individually significant customers has increased by Rs. 445.1 million due to a conscious decision taken to increase the provision cover against doubtful loans. 

The collective impairment charge stood at Rs. 160.8 million for the period, which is a decline of Rs. 304.1 million compared to the charge of Rs. 464.9 million recorded for the corresponding period of 2015, due to decreased loss rates resulting from the improving credit quality of the loan book.

Business growth 

Sampath Bank, which surpassed the Rs. 600 billion mark in total assets during the period, reported a total asset base of Rs. 617.4 billion as at 30 September 2016, recording a growth of 17.5% (annualised 23.3%) over the total assets that prevailed as at 31 December 2015 (Rs. 525.3 billion). 

Gross loans and receivables grew by 14.5% during this period (annualised 19.3%) and moved up to Rs. 442.2 billion as at 30 September 2016. The total deposit base too increased by Rs. 83.0 billion, recording a notable growth of 20.3% (annualised 27.1%) and reached Rs. 492.4 billion as at the reporting date. Higher growth in the deposit base was mainly triggered by an increase in term deposits (TDs). CASA ratio recorded a decline from 47.3% as at 31 December 2015 to 39.8% as at 30 September 2016.

Performance ratios 

ROE (after tax) substantially improved and stood at 23.9% as at 30 September 2016 when compared to 18.4% recorded as at 31 December 2015, while ROA (before tax) improved to 2.1% by the end of the first nine months of 2016, as against 1.9% recorded on 31 December 2015. 

The Basic Earnings per share (group) for the first three quarters of 2016 has substantially improved and stood at Rs. 39.21 as against Rs. 28.75 recorded for the corresponding period in the previous year. This was an impressive growth of 36.4%. Statutory liquid asset ratio (SLAR) as at 30 September 2016 stood at 22.35%, showing a marginal improvement against the ratio recorded as at 31 December 2015 (22.05%). The bank managed to maintain SLAR well above the mandatory requirement of 20% throughout the period. The bank’s gross NPL ratio (1.67%) however has fractionally increased from 1.64%, recorded as at 31 December 2015. 

Capital adequacy  

The Core Capital (Tier I) and Total Capital (Tier I + Tier II) adequacy ratios, which stood at 7.90% and 12.26% respectively as at 31 December 2015, have shown a drop during the period, as a result of increase in risk weighted assets accompanied by  growth in advance portfolio and dividend paid in 2016. Accordingly, Core Capital and Total Capital adequacy ratios as at 30 September 2016 stood at 7.68% and 11.92% respectively. 

Despite the slight drop, both ratios were maintained well above the minimum regulatory requirement of 5% for Core Capital and 10% for Total Capital. With the objective of strengthening capital adequacy, the bank issued subordinated debentures amounting to Rs. 6.0 billion in June 2016 and the issue was oversubscribed on the day of opening. 

 


http://www.ft.lk/article/578698/Sampath-Bank-ups-after-tax-profit-by-41--to-Rs--6-7-b

36 Re: Sampath Bank PLC - A giant awakening on Mon Nov 07, 2016 10:45 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Certainly Sampath bank growth continues smoothly even under toughest economic challenges which proves the standing posture of efficient management.
Profit earning share after few months.

37 Re: Sampath Bank PLC - A giant awakening on Mon Nov 07, 2016 1:49 pm

EquityChamp

avatar
Moderator
Sampath Bank is a AAA+ investment grade stock since a long time. In the mid term it should deliver at least 40% return.

38 Re: Sampath Bank PLC - A giant awakening on Thu Feb 16, 2017 7:59 pm

EquityChamp

avatar
Moderator
@EquityChamp wrote:Thought of talking a bit of this stock. It has recorded an EPS of 30.5 and 38.4 in FY 2014 & 2015 but traded around Rs230 - Rs240 most of the time. For some reason the earnings have not been properly reflected on the stock price may be due to subdued market conditions.

On the back of this the bank has recorded significant growth in revenue as well as profits in 1H of FY 2016. Based on my assumptions for 2H I worked out a forecast for the FY 2016 as follows.
 
 201420152016 F
NII  16,781  18,550     23,353
Net fee & commision income    4,259    5,417       6,296
Net operating income  22,606  26,742     32,555
Total operating expenses  12,180  13,962     15,978
PBT    7,247    9,790     12,719
PAT    5,268    6,628       9,388
EPS30.5538.44       53.04
Share price    236.0    248.0       243.8
NAV       179       204267
This stock will report astonishing earnings growth in excess of 40% this year on the back of interest income growth of 26%.

In terms of valuations the stock is trading @ a forward PE of 4.6x @ todays CMP of 243.8. If just compare with the average PE and PBV ratios clocked by this stock for the last two years the share should adjust to at least Rs357/- in the coming months.

Therefore a clear appreciation potential by at least 40% is visible to me. My advise for you is not to sell your Sampath @ these levels but BUY it now for a two quarter period investment. Sampath will deliver you a great result.

Good luck
A giant is truly awakening. My forecast of 9.4Bn is achieved. In fact they went on to earn 9.5Bn. Under the extreme difficult economic conditions this is a remarkable achievement.

Plus they rewarded the shareholders with a significant combined dividend this month. I am expecting this stock to hit 300+ within this month itself. The charts confirms the bullishness of the stock to date.

39 Re: Sampath Bank PLC - A giant awakening on Fri Feb 17, 2017 6:17 am

glad


Manager - Equity Analytics
Manager - Equity Analytics
Thanks to you all for the predictions and analysis

40 Re: Sampath Bank PLC - A giant awakening on Sun Apr 09, 2017 3:06 pm

EquityChamp

avatar
Moderator
Sampath bank is still not moved after the XD and scrip dividend. The ASPI however in a strong mission. keep Sampath in your mind that it is a stock with long overdue upward movement. Once people realize it then the burst will be like a volcano.

View previous topic View next topic Back to top  Message [Page 1 of 2]

Go to page : 1, 2  Next

Permissions in this forum:
You cannot reply to topics in this forum