Samba Bank Limited (SBL) reported a stronger bottom-line performance for the first quarter ended March 31, 2026, with profit after taxation rising to Rs193.33 million from Rs166.85 million in the same period last year. This represents an increase of around 16% year-on-year. The bank’s Board of Directors approved the unaudited financial results on April 23, 2026.

The improvement in profitability came despite a decline in net mark-up/interest income. During the quarter, net mark-up income stood at Rs1.26 billion, compared with Rs1.56 billion in the corresponding quarter of 2025. However, higher non-mark-up income helped offset part of the pressure on the bank’s core interest income.

Non-Mark-up Income Provides Support

Samba Bank’s total non-mark-up/interest income increased to Rs386.16 million during the quarter, compared with Rs383.10 million a year earlier. Fee and commission income reached Rs100.42 million, while dividend income increased to Rs34.42 million from Rs18.97 million.

Foreign exchange income remained a significant contributor at Rs156.15 million, while gains on securities amounted to Rs89.08 million. Other income also improved to Rs6.09 million from Rs0.17 million in the same period last year.

Overall, total income stood at Rs1.64 billion in the first quarter, compared with Rs1.94 billion in the corresponding period of 2025. Despite the lower overall income, the bank managed to improve its profitability through controlled expenses and changes in credit-loss provisions.

Profit Before Tax Rises

Profit before taxation increased to Rs403.44 million from Rs355.22 million, reflecting growth of approximately 14% year-on-year.

The bank’s operating expenses were relatively stable, increasing only slightly to Rs1.35 billion from Rs1.34 billion. This modest rise helped Samba Bank maintain better cost discipline despite the challenging income environment.

Another notable change was in credit-loss allowance and provisions. The bank recorded a credit-loss allowance of Rs122.49 million during the quarter, compared with a net recovery of Rs238.33 million in the same period last year. Even with this swing, the bank delivered higher pre-tax and after-tax earnings.

Balance Sheet Shows Expansion

Samba Bank’s total assets increased to Rs232.08 billion as of March 31, 2026, compared with Rs206.44 billion at the end of December 2025. Investments rose significantly to Rs139.94 billion from Rs117.36 billion, while balances with other banks and lending to financial institutions also increased.

Advances, however, declined to Rs57.47 billion from Rs60.61 billion at year-end 2025. Deposits and other accounts stood at Rs117.85 billion, slightly below the Rs118.93 billion recorded at December 31, 2025. Meanwhile, borrowings increased substantially to Rs79.61 billion from Rs52.21 billion.

Strong Operating Cash Flow

The bank generated net cash flow from operating activities of Rs30.80 billion during the first quarter, significantly higher than Rs10.62 billion recorded in the same period last year. The improvement was supported by higher borrowings from financial institutions and movements in operating assets and liabilities.

At the same time, Samba Bank invested Rs24.76 billion in investing activities, primarily reflecting net investments in securities classified as FVOCI. Financing activities used Rs5.44 billion during the quarter, including repayment of debt securities. Cash and cash equivalents stood at Rs11.05 billion at March 31, 2026.

No Dividend or Bonus Shares Announced

For the quarter under review, the bank announced no cash dividend, bonus shares or right shares. The company also stated that there was no other entitlement, corporate action or price-sensitive information to report.

Samba Bank’s first-quarter results therefore present a mixed but ultimately positive picture. While the bank faced pressure on net interest income and overall revenue, stronger non-mark-up income, relatively controlled operating expenses and the resulting improvement in profitability enabled it to post a year-on-year increase in earnings.

The bank’s basic and diluted earnings per share also improved to Rs0.19 from Rs0.17 in the first quarter of 2025.