SAMP.N0000 (Sampath Bank PLC)

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JBS

Two-Digit Zone is a real possibility.

කිත්සිරි ද සිල්වා wrote:Two-Digit Zone is a real possibility.

Kithsiri, why worry? 
I thought you don't care about short term issues.
( hey I did issue you a short term be careful too last week )

Well  now am in the  Sampath passenger boat too.
But depending on the market play on SAMP tommorow,
this  short trade  I got into  ( to benefit from the dividend ) might make
me a  loser unless I find a way to hold longer.

Maybe I should have stuck to my initial sense as mentioned before.
But today SAMP drop was too tempting to not buy some. 

Oh well, atleast I will get the dividend.

For sake all Samp holders, I hope the big sellers exit before  XD

Maybe by luck of irish, it might go up tomorrow haha

Not worried at all.
This and a few others have been in my Pf for too long.
And I can wait another two more decades before I hang my boots and call it a day.
Only saddened because of how the MARKET treats such a good & reliable counter.  

slstock wrote:

කිත්සිරි ද සිල්වා wrote:Two-Digit Zone is a real possibility.

Kithsiri, why worry? 
I thought you don't care about short term issues.
( hey I did issue you a short term be careful too last week )

Well  now am in  Sampath boat passenger too.
But depending on the market play on SAMP tommorow,
this  short trade  I got into  ( to benefit from the dividend ) might make me loser
unless I find a way to hold longer.

I should have stuck to initial my   sense and guts.
But today drop was too tempting to not buy some. 

For sake all Samp holders, I hope the big sellers exit before  XD

slstock wrote:

කිත්සිරි ද සිල්වා wrote:Two-Digit Zone is a real possibility.

+
+
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Well  now am in the  Sampath passenger boat too.
But depending on the market play on SAMP tommorow,
this  short trade  I got into  ( to benefit from the dividend ) might make
me a  loser unless I find a way to hold longer.

+
+
+

What they say is true after all it seems;
"When a short term trade is messed up, it will automatically become a long term strategic hold"

Tomorrow is XD for SAMP,can expect a drop to 103-105 range,If it come below this belt is a bonus for LT holders.I'm planning to buy some for compounding.

Yin-Yang wrote:

slstock wrote:

කිත්සිරි ද සිල්වා wrote:Two-Digit Zone is a real possibility.

+
+
+

Well  now am in the  Sampath passenger boat too.
But depending on the market play on SAMP tommorow,
this  short trade  I got into  ( to benefit from the dividend ) might make
me a  loser unless I find a way to hold longer.

+
+
+

What they say is true after all it seems;
"When a short term trade is messed up, it will automatically become a long term strategic hold"

Oh "Word Extractor" has shown up !

What "THEY  say is true"  .
As if it  has never happened to you  right ?   


I share things openly so  other can learn from my possible trading errors


How about you sharing something  of your own now Mr word extractor? 

~~~~~~~~~


SAMP holders , just so you know
-----------

1) Do you know, today Sudda sold 1.35 million shares of  Sampath !
    Sudda don't  likey Sampath !


2) I don't know what will happen on XD but just stating a general 
Fundamental fact for learning.

Scrip dividend increases the number of shares in market but Cash div doesn't.
So there is no fundamental reason the share value degrades for Cash dividends.


ex: I bought some REG few days before XD, kept the dividend 
and sold higher few days after XD.  REG held value without dropping.


4) But depending on market sentiment/selling pressure , share value can drop
as we seen at CSE.


Sampath.. let see what will  happen on XD.

Update: 

1) Supreme court dismissed Petition for Election date !
If green  market tomorrow , maybe my trade make me a winner now ?
Would be nice if everyone can be a winner for short term !
 
2) Today , I sold SAMP at  Rs117 and bought back at Rs 115. Made Rs 300+

On XD date, the fundamental reason why share price typically drops is because it is being traded without dividend. The seller has already earned the dividend, and is willing to sell at a price that is lower (to the extent of dividend).

SAMP has posted the dividend already !
Check your accounts.
4 days before schedule. A big rarity !

~~~~~~~

For anyone curios to know how my Samp TRADE went ?

Yes I did sell after XD as planned.
Got the Dividend now.
Ofcourse made a loss on the share sale after XD.
But I still made a few thousand Rs profit after the Dividend.
Not bad for few days trade.
This time the  gamble worked!
But  it will not always.
Don't do this if you are not sure.
I explained why I did it before.

Yes, I got it Yesterday into My bank A/C.

slstock wrote:SAMP has posted the dividend already !
Check your accounts.
4 days before schedule. A big rarity !

~~~~~~~

For anyone curios to know how my Samp TRADE went ?

Yes I did sell after XD as planned.
Got the Dividend now.
Ofcourse made a loss on the share sale after XD.
But I still made a few thousand Rs profit.
Not bad for few days trade.
This time the  gamble worked!
But  it will not always.

The strategy of buying a stock shortly before a dividend has been paid with the intention of selling it immediately after the dividend is paid is called dividend stripping. Good that you pointed out that this can be a risky trade that might not always work.

I also entered SAMP because I was attracted by the dividend (which has not yet reached my account), but have decided to hold on for the longer term. I am sitting on an unrealized gain of Rs 7.25 per share, and hoping for the best...

I thought the payment date is 12th June?

කිත්සිරි ද සිල්වා wrote:I thought the payment date is 12th June?

I think I received yesterday.

කිත්සිරි ද සිල්වා wrote:I thought the payment date is 12th June?

I too received yesterday.

slstock wrote:
+
+



Oh "Word Extractor" has shown up !

What "THEY  say is true"  .
As if it  has never happened to you  right ?   


I share things openly so  other can learn from my possible trading errors


How about you sharing something  of your own now Mr word extractor? 

~~~~~~~~~


+
+

ex: I bought some REG few days before XD, kept the dividend 
and sold higher few days after XD.  REG held value without dropping.



If green  market tomorrow , maybe my trade make me a winner now ?
Would be nice if everyone can be a winner for short term !
 
2) Today , I sold SAMP at  Rs117 and bought back at Rs 115. Made Rs 300+

Ayyo Vet. Bro,
Where have you been all those days?

You're doing the easy thing ne.

We have long time proven that making profit was not the difficult job. Making losses was far more difficult.

See, YK Bro found it impossible to loose here;;

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++++++++

See what we were trading those days; SAMP, RICH +++++

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Any short term targets for SAMP?

Sampath Bank backed by Rs. 1 trillion Balance Sheet

The global economy took a steep downward trend with the outbreak of COVID – 19 pandemic epicentre shifting from China and East Asia to the United States and Europe. Most countries declared prolonged lockdowns and movement restrictions with a view to controlling the disease, which severely hampered worldwide economic activity and global trade from March 2020.

Domestically, the COVID – 19 outbreak weakened the Country outlook substantially as it brought further stress to an already challenged macroeconomic situation. Responding to these economic challenges, the Central Bank of Sri Lanka took steps to cut policy rates twice during the second quarter, resulting in the Standard Deposit Facility Rates and the Standard Lending Facility Rates dropping to 5.5% and 6.5%, respectively by 30th June 2020. At the same time, the Statutory Reserve Requirement (SRR) was reduced in two stages from 5% to 2% during the 1H 2020, in a bid to improve liquidity levels in the market.

While the economy and the banking sector as a whole continued to face unprecedented challenges due to the COVID-19 pandemic, Sampath Bank is pleased to announce that its total assets crossed the Rs One Trillion (1 Tn) mark for the first time in its history. Reaching this milestone in the span of just 33 years, probably makes Sampath Bank the youngest business organisation in Sri Lanka to achieve this significant milestone

During this difficult period the Bank redoubled efforts to serve its valued customers, who were severely impacted by the prolonged lockdown, to overcome the challenges and hardships faced by them. By leveraging its IT supremacy and substantial investments made in technology platforms and the widespread branch network, Sampath Bank was able to operate seamlessly during this time of disruption. The Bank was quick to implement all the relief measures introduced by the government, with approximately 50% of the Bank's loan portfolio being granted relief under the government announced moratorium scheme. Further, the Bank actively engaged in providing working capital loans under “Saubhagya” scheme introduced by the government and took proactive steps to provide necessary assistance to customers across all segments who required special attention, including re-scheduling of loan repayments of those customers who were severely impacted.

Given the unprecedented challenges witnessed in the first half of 2020, it is important to note that comparing the Financial result of the first half of 2020 with 2019 may not be realistic.

Financial Result of Sampath Bank for the First Half of 2020

Sampath Bank registered a profit before tax (PBT) of Rs 5.32 Bn and a profit after tax (PAT) of Rs 3.97 Bn for the six months ended 30th June 2020. Despite the unique challenges that prevailed since midMarch 2020, the Bank was able to limit the decline in PBT and PAT to 8% and 3.2% respectively compared to the corresponding period in 2019. The Bank made solid progress towards its targets set for 2020, which together with diversified product portfolio embedded with technological advancements and strong cost control measures helped the Bank to control the impact on profits. PBT and PAT of the Group also declined by 7.7% and 4.2% respectively for the six months ended 30th June 2020 and stood at Rs 5.48 Bn and Rs 3.99 Bn respectively.

Meanwhile, the Bank remained well-capitalized with a Tier 1 capital ratio of 13.30% and a Total capital ratio of 16.77%

Fund Based Income (FBI)

The Bank’s Net Interest Income (NII) for the quarter ended 30th June 2020 was significantly affected by two factors - reduction in policy rates in order to provide relief to the economy and the moratorium granted to customers. Consequently, the day one loss on account of COVID - 19 moratorium was recorded against the interest income as per the modification method given in the Sri Lanka Accounting Standard – 9 (SLFRS – 9). As the entire day one loss that arose due to COVID - 19 moratorium has been recorded during the period under review, Sampath Bank does not have to incur any additional impact on interest income during the 2H of 2020.

Due to the reasons mentioned above, the Bank's Net Interest Income declined by 11.9% and stood at Rs 17.4 Bn for the 1st half of 2020 compared to the same period in 2019. While closely monitoring the factors affecting this reporting line, the Bank's ALCO continued to take necessary action to manage the net interest income to the best possible level. Overall, interest income for the period decreased by Rs 5.0 Bn to Rs 46.2 Bn compared to Rs 51.2 Bn recorded in the corresponding period in 2019, denoting a decline of 9.8%. The total interest expenses stood at Rs 28.8 Bn in 1H 2020 compared to Rs 31.4 Bn recorded in the corresponding period of 2019, a reduction of 8.5%.

Consequently, the Net Interest Margin for the 1H 2020 decreased to 3.57% compared to 4.46% reported in 2019.

Non-Fund Based Income (NFBI)

Net fee and commission income, which comprise of credit, trade, card, and electronic channel related fees, was limited to Rs 3.8 Bn during the period under review, a decline of 18.9% over the figure reported in 1H 2019. The decline was mainly due to the decrease in credit-related fee and commission income consequent to the restrictions imposed to assist customers during this difficult period. Meanwhile, the fee and commission income from electronic channels showed strong growth owing to the high usage of Sampath Vishwa and other popular electronic products.

Other operating income (net) recorded a significant YoY increase of 509% in the 1st half of 2020, led mainly by an increase in realized exchange income due to the 2.7% depreciation of the Sri Lankan Rupee against the US Dollar. Consequently, other operating income (net) for the first six months of 2020 increased to Rs 2.6 Bn, from the loss of Rs 642 Mn reported for the corresponding period in 2019. On the other hand, the Bank incurred a net trading loss of Rs 107 Mn as a result of mark to the market losses on forward exchange contracts owing to the aforementioned currency depreciation. Therefore, the Bank's net exchange income from foreign exchange transactions amounted to Rs 1.8 Bn for the period under review.

Operating Expenses

Operating expenses, which stood at Rs 10.1 Bn during 1H 2019, decreased to Rs 9.6 Bn during the period under review, reflecting a YoY decline of 5.2%. The cost optimization strategies implemented by the Bank to face the situation was instrumental for this achievement. Meanwhile, the Bank’s Cost-to-Income ratio (excluding taxes on financial services) increased marginally to 40.2% in the first six months of 2020, from 38.8% reported for the corresponding period in 2019. The main reason for this marginal increase was the drop in the key income sources during the first half of 2020.

Impairment Charges on Loans and Receivables

The Bank has provided a substantial credit loss provision for customers whose credit risk has significantly increased due to the prevailing economic recession. As a result, the impairment charge against individually significant customers increased to Rs 4.3 Bn in 1H 2020 from Rs 2.5 Bn in the corresponding period in 2019.

After analyzing the economic downturn, Sampath Bank management decided to increase the credit loss provision at the portfolio level as well. However, the collective impairment charge for the first six months of 2020 is lower compared to the first half of the last year due to the explanation given below. The credit quality of the loan portfolio was severely affected in April 2019 due to the terrorist attack that took place in April 2019 which prompted the Bank to increase its collective impairment provision in Q2 2019.

Business Growth

Sampath Bank’s total asset base grew by 4.5% (annualized 9.0%) during the period under review to reach Rs 1 Tn as at 30th June 2020. It stood at Rs 962 Bn as at 31st December 2019. Gross loans & advances grew by 3.9% (annualized 7.8%) to reach Rs 748 Bn as at 30th June 2020, recording a growth of Rs 28 Bn for the period under review. The total deposit base increased by Rs 72 Bn for the same period, to reach Rs 790 Bn as at the reporting date, a growth of 10% (annualized 20%). Meanwhile, the CASA ratio, which stood at 36.6% as at 30th June 2020 improved marginally from the 31st December 2019 position of 35.2%.

Performance Ratios

Return on Average Equity (ROE) (after tax) declined from 11.78% as at 31st December 2019 to 7.56% as at 30th June 2020, in direct correlation to the lower PAT. Return on Average Assets (ROA) (before tax) also declined to 1.09% from 1.66% as at 31st December 2019.

The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Off-Shore Banking Unit stood well above the mandatory requirement of 20% throughout the period and ended up at 28.12% and 33.88% respectively as at 30th June 2020.

Capital Adequacy

The Bank’s Common Equity Tier I Capital, Tier I Capital and Total Capital Adequacy ratios as at 30th June 2020 stood at 13.30%, 13.30% and 16.77% respectively, all well above the minimum regulatory requirement of 6.5%, 8% and 12.0%, applicable as at the reporting date.

Sri Lanka’s Sampath Bank net down over early recognition of interest loss

ECONOMYNEXT – Profits of Sri Lanka’s Sampath Bank Plc fell 36 percent to 1.32 billion rupees in the June 2020 quarter from a year earlier, with the up-front recognition of interest losses from Coronavirus moratorium and lower fee income, interim accounts showed.

The group reported earnings of 3.46 rupees per share for the quarter. For the six months to June 2020, the group reported earnings of 10.40 rupees on total profits of 3.9 billion rupees which was down 4.2 percent.

Interest income at group level fell 15.6 percent to 22.8 billion rupees in the quarter and interest expenses fell 12.2 percent to 14.7 billion driving net interest income down 21.2 percent to 8.1 billion rupees.

“The Bank’s Net Interest Income (NII) for the quarter ended 30th June 2020 was significantly affected by two factors – reduction in policy rates in order to provide relief to the economy and the moratorium granted to customers,” the lender told shareholders.

“Consequently, the day one loss on account of COVID – 19 moratorium was recorded against the interest income as per the modification method given in the Sri Lanka Accounting Standard – 9 (SLFRS – 9).

“As the entire day one loss that arose due to COVID – 19 moratorium has been recorded during the period under review, Sampath Bank does not have to incur any additional impact on interest income during the 2H of 2020.”

The bank provided 2.8 billion rupees for loan losses, down from 4.0 billion last year.

The provision was lower than last year due to higher loan losses recognized after the Easter Sunday attacks, the bank said.

Non-performing loans grew to 7.03 percent by end June from 6.37 percent in December.
Fee income fell 34 percent to 1.6 billion rupees.


“The decline was mainly due to the decrease in credit-related fee and commission income consequent to the restrictions imposed to assist customers during this difficult period,” the bank said.

“Meanwhile, the fee and commission income from electronic channels showed strong growth owing to the high usage of Sampath Vishwa and other popular electronic products.”

Sampath Banks gross assets rose 4.6 percent to cross a trillion rupees to reach 1,045 billion rupees during the quarter.

Net assets fell 0.6 percent to 110.7 billion rupees.

Capital adequacy was 16.7 percent by end June from 18.12 percent in December, with Tier I capital at 13.3 percent by end June higher than the required 6.5 percent. (Colombo/Aug13/2020)

INTERIM RESULTS UPDATE - SRI LANKA EQUITY RESEARCH Softlogic Stockbrokers

INTERIM RESULTS UPDATE - SRI LANKA EQUITY RESEARCH Softlogic Stockbrokers

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Disclosure

HNB has done the same thing.

Bending to political pressures?

pjrngroup wrote:HNB has done the same thing.

I believe both banks were keep doing this because of they had plan on international fund raising in foreign currency, but with current Sri Lanka rating this will not be able to do in coming years. Also based on current economic situation these reviews will do more bad impression than the good for the company.

SAMPATH BANK PLC - SUB-DIVISION OF SHARES
Timely move by company        

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