Siyapatha Finance records exceptional financial performance for 1H2026, crossing Rs. 104 billion in total assets

Siyapatha Finance PLC, the largest fully-owned finance company of the Sampath Bank Group, delivered an exceptional financial performance for the six months ended 30 June 2026, reflecting the Company's continued strategic growth initiatives, resilient asset quality, and unwavering commitment to sustainable value creation.

The Company recorded a profit after tax (PAT) of Rs. 1,007 million, a robust 43 percent increase from Rs. 706 million in the corresponding period of 2025, while profit before taxes (PBT) grew 38 percent to Rs. 2,334 million from Rs. 1,689 million, demonstrating sustained market and customer confidence in the Company's core operations.

"Our performance in the first half of 2026 is a clear reflection of Siyapatha Finance's strategic foresight and our unwavering commitment to sustainable growth," said Siyapatha Finance Chief Executive Officer Mathisha Hewawitharana.

"Surpassing the Rs. 104 billion mark in total assets while significantly improving our asset quality underscores the strength of our core operations and the deep trust our customers place in us.

As we navigate the evolving macroeconomic landscape, we remain focused on prudent risk management and delivering enhanced value to our stakeholders."

The Company's core business operations continued to yield strong returns, with total interest income growing to Rs. 7,719 million from Rs. 5,272 million a year earlier, driving net interest income up to Rs. 3,487 million from Rs. 2,629 million, signifying the Company's efficient management of assets and liabilities.

Other income strengthened to Rs. 1,054 million from Rs. 826 million, reinforcing the effectiveness of the Company's revenue diversification strategy.

The cost-to-income ratio improved to 49 percent from 54 percent, a testament to the Company's continued focus on operational efficiency and process optimization.

Asset quality strengthened markedly during the period, underscoring the success of Siyapatha Finance's prudent credit risk management and proactive recovery initiatives.

The gross stage 3 loans ratio improved to 4 percent from 8 percent a year earlier, while the net stage 3 loans ratio declined to 2 percent from 3 percent.

The Company's balance sheet witnessed robust expansion, with total assets crossing the landmark Rs. 100 billion mark to reach Rs. 104 billion as at 30 June 2026, up from Rs. 74 billion in the previous year.

The loan book grew by 44 percent to Rs. 99 billion, driven by a stabilized interest rate environment and a broader macroeconomic recovery that spurred sustained credit demand across key economic sectors.

Customer deposits, a key indicator of public trust in the Company, grew to Rs. 42 billion from Rs. 34 billion, while bank borrowings rose to Rs. 28 billion from Rs. 12 billion, further diversifying the Company's funding base to support its accelerated growth momentum.

Siyapatha Finance continued to maintain a strong capital and liquidity position, well above the regulatory thresholds mandated by the Central Bank of Sri Lanka, with a Tier 1 Capital Adequacy Ratio of 11.88 percent against a required minimum of 8.50 percent and a Total Capital Adequacy Ratio of 16.93 percent against a required 12.50 percent.

The Company's Available Liquid Assets to Required Liquid Assets ratio stood at a healthy 148.05 percent, well above the regulatory minimum of 100 percent, reaffirming the Company's financial resilience and capacity to support future growth.

Net asset value per share appreciated to Rs. 109.63 from Rs. 91.07 a year earlier.

The Company's islandwide branch network expanded to 66 locations from 53 a year earlier, reflecting its continued commitment to enhancing accessibility for customers across Sri Lanka.

Backed by the robust foundation of its parent, the Sampath Bank Group, Siyapatha Finance continued to hold a National Long-Term Rating of A(lka)/Stable from Fitch Ratings, further affirming its solid financial standing.

Looking ahead, Siyapatha Finance aims to leverage its newly achieved milestone of surpassing Rs. 100 billion in total assets as a powerful launchpad for the second half of 2026.

The Company remains committed to strengthening its digital capabilities, expanding its island-wide footprint, and upholding prudent risk management practices as it capitalizes on the economic recovery to sustainably grow its core lending and deposit businesses.

Image caption from left to right - Mr. Sumith Cumaranatunga - Chairman, Siyapatha Finance PLC and Mr. Mathisha Hewavitharana - CEO, Siyapatha Finance PLC.