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Sampath Bank PLC - A giant awakening

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Sampath Bank PLC - A giant awakening

Post by EquityChamp on Tue Aug 02, 2016 11:07 pm

First topic message reminder :

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
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Re: Sampath Bank PLC - A giant awakening

Post by kassachandimal on Wed Sep 28, 2016 2:24 pm

yeah EC


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

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Re: Sampath Bank PLC - A giant awakening

Post by kassachandimal on Wed Sep 28, 2016 2:25 pm

Some good volumes changing hands in SAMP

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Re: Sampath Bank PLC - A giant awakening

Post by worthiness on Wed Sep 28, 2016 5:35 pm

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

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Re: Sampath Bank PLC - A giant awakening

Post by Bullrunner7 on Wed Sep 28, 2016 6:15 pm

I'm holding from 253 onwards Smile
Thank you EC Smile

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Re: Sampath Bank PLC - A giant awakening

Post by Harry82 on Thu Sep 29, 2016 7:16 am

Rs 3.00 or Rs 5.00 up today?

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Re: Sampath Bank PLC - A giant awakening

Post by Bullrunner7 on Thu Sep 29, 2016 10:10 am

Needs to break 267 within today
Anyway I'm confident that this is a winning stock !
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Re: Sampath Bank PLC - A giant awakening

Post by kassachandimal on Wed Oct 05, 2016 12:51 pm

SAMP very active. will break 270 this week

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Re: Sampath Bank PLC - A giant awakening

Post by Bullrunner7 on Thu Oct 06, 2016 10:24 am

They opened another branch in wellawatte
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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Fri Nov 04, 2016 10:26 am

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.
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Re: Sampath Bank PLC - A giant awakening

Post by nimantha80 on Fri Nov 04, 2016 10:40 am

Samp and other banking shares will lead the market.DFCC results amazing

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Re: Sampath Bank PLC - A giant awakening

Post by nimantha80 on Fri Nov 04, 2016 5:02 pm

onna badu awa.patta results.

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Re: Sampath Bank PLC - A giant awakening

Post by worthiness on Fri Nov 04, 2016 6:06 pm

Some are cashing SAMP share at low prices. Also, demand movement is dull. I guess around 65000 shares were traded today.

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SAMP - Rs 360.00 ( 2016 target)

Post by Harry82 on Sun Nov 06, 2016 9:58 pm

                                                                    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%
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Re: Sampath Bank PLC - A giant awakening

Post by Harry82 on Mon Nov 07, 2016 6:08 am

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
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Sampath Bank ups after tax profit by 41% to Rs. 6.7 b

Post by nimantha80 on Mon Nov 07, 2016 7:23 am

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

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Re: Sampath Bank PLC - A giant awakening

Post by worthiness on Mon Nov 07, 2016 10:45 am

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.

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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Mon Nov 07, 2016 1:49 pm

Sampath Bank is a AAA+ investment grade stock since a long time. In the mid term it should deliver at least 40% return.
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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Thu Feb 16, 2017 7:59 pm

@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.
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Re: Sampath Bank PLC - A giant awakening

Post by glad on Fri Feb 17, 2017 6:17 am

Thanks to you all for the predictions and analysis

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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Sun Apr 09, 2017 3:06 pm

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.
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Re: Sampath Bank PLC - A giant awakening

Post by aathi on Mon Apr 10, 2017 8:38 am

EC,

SAMP Good stock with huge value.

Is there any possibility of right announcement FROM SAMP like COMB & PABC?

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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Mon Apr 10, 2017 9:53 am

@aathi wrote:EC,

SAMP Good stock with huge value.

Is there any possibility of right announcement FROM SAMP like COMB & PABC?

That's some thing to think and analyse. Why PABC has gone for rights is to strengthen the tier a capital requirements under new laws. Commercial bank has no shortfall but they went for rights to increase the capital base to support the expansion. Sometimes if Sampath felt the same need then they might as well go for the same.
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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Wed May 24, 2017 11:07 am

Sampath Bank has got good foreign attention as well. From 280 to 290 it went up with good foreign support. The value of it still remains intact.
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Re: Sampath Bank PLC - A giant awakening

Post by DS Wijesinghe on Wed May 24, 2017 11:17 am

My prediction is that Sampath Bank will appreciate to 325/- within the next 3 month period. A great and a wonderful business to be owned by bank savvy investors

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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Wed May 24, 2017 11:20 am

It has more value than anybody thinking of it. PE just below 5x. Amazing earnings growth.
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Re: Sampath Bank PLC - A giant awakening

Post by DS Wijesinghe on Wed May 24, 2017 11:28 am

I agree with Equity Champ. It is tremendously undervalued in price right now. Apart from Sampaths attractive earnings and Big EPS, the NAVP is over Rs. 280/- even after the scrip dividend. It is one of the few stocks which appreciated against an overall declining market. This share should take off any moment and the upward trend seen now could be an indication of what is to come in the next few months

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Re: Sampath Bank PLC - A giant awakening

Post by EquityChamp on Wed May 24, 2017 11:31 am

The other stock of same caliber is HNB. Appreciated every year despite ASPI pull backs.
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