Siyapatha Finance PLC, the largest wholly-owned finance subsidiary of the Sampath Bank Group, reported impressive financial results for the six-month period ending on June 30, 2026. This performance highlights the company’s ongoing strategic growth efforts, strong asset quality, and dedication to creating sustainable value.
The financial data indicates that the company achieved a post-tax profit of Rs. 1,007 million, marking a significant 43 percent increase from Rs. 706 million during the same timeframe in 2025. Furthermore, profit before tax rose by 38 percent to Rs. 2,334 million, up from Rs. 1,689 million, showcasing the sustained confidence of the market and customers in the company’s primary operations.
“The results from the first half of 2026 reflect Siyapatha Finance’s strategic vision and our steadfast dedication to sustainable growth,” stated Mathisha Hewawitharana, the Chief Executive Officer of Siyapatha Finance. “Exceeding Rs. 104 billion in total assets and markedly enhancing our asset quality demonstrates the robustness of our core operations and the deep trust our customers have in us. As we adapt to the changing macroeconomic environment, we remain committed to prudent risk management and enhancing value for our stakeholders.”
The company’s primary business activities continued to generate strong returns, with total interest income increasing to Rs. 7,719 million from Rs. 5,272 million the previous year. This led to net interest income rising to Rs. 3,487 million, up from Rs. 2,629 million, indicating effective asset and liability management. Additionally, other income climbed to Rs. 1,054 million from Rs. 826 million, confirming the success of the company’s revenue diversification efforts. The cost-to-income ratio improved from 54 percent to 49 percent, reflecting the company’s ongoing focus on operational efficiency and process improvements.
Asset quality improved significantly during this period, highlighting the effectiveness of Siyapatha Finance’s conservative credit risk management and proactive recovery strategies. The gross stage 3 loans ratio saw a reduction to 4 percent from 8 percent a year earlier, while the net stage 3 loans ratio decreased to 2 percent from 3 percent.
The company’s balance sheet demonstrated robust growth, with total assets surpassing the notable Rs. 100 billion threshold, reaching Rs. 104 billion as of June 30, 2026, compared to Rs. 74 billion in the previous year. The loan portfolio expanded by 44 percent to Rs. 99 billion, driven by a stable interest rate environment and a broader economic recovery that fostered sustained demand for credit across key sectors. Customer deposits, an essential indicator of public confidence in the company, rose to Rs. 42 billion from Rs. 34 billion, while bank borrowings increased to Rs. 28 billion from Rs. 12 billion, diversifying the company’s funding sources to support its growth trajectory.
Siyapatha Finance maintained a strong capital and liquidity position, exceeding the regulatory requirements set by the Central Bank of Sri Lanka. The Tier 1 Capital Adequacy Ratio stood at 11.88 percent, above the minimum requirement of 8.50 percent, while the Total Capital Adequacy Ratio was 16.93 percent, surpassing the required 12.50 percent. The company’s Available Liquid Assets to Required Liquid Assets ratio was a robust 148.05 percent, well above the regulatory minimum of 100 percent, reaffirming its financial stability and ability to support future growth. The net asset value per share rose to Rs. 109.63 from Rs. 91.07 a year earlier.
The company expanded its branch network to 66 locations from 53 the previous year, demonstrating its commitment to improving accessibility for customers throughout Sri Lanka. Supported by the strong foundation of its parent company, Sampath Bank Group, Siyapatha Finance has maintained a National Long-Term Rating of A(lka)/Stable from Fitch Ratings, further confirming its solid financial position.
Looking forward, Siyapatha Finance intends to utilize its achievement of exceeding Rs. 100 billion in total assets as a strong foundation for the second half of 2026. The company remains focused on enhancing its digital capabilities, expanding its nationwide presence, and maintaining prudent risk management practices as it seeks to capitalize on the economic recovery to promote sustainable growth in its core lending and deposit sectors.
