Welcome to Our 11th Integrated Annual Report
OUR APPROACH TO REPORTING
This is Sampath Bank PLC’s 11th Integrated Annual Report and provides a balanced and concise account of the Bank’s value creation story during the financial year ended 31st December 2024. This Integrated Annual Report explains how we delivered on our strategic objectives in the context of our operating environment, corporate governance framework, risk management practices and performance during the year. Through this narrative we aim to demonstrate the Bank’s commitment to sustainable value creation for all stakeholders and outline our vision for future growth.
Reporting Entity
Our Annual Report covers the operations of Sampath Bank PLC and its four subsidiaries collectively called “the Group”. Sampath Bank PLC is the largest entity within the Group accounting for 96.8% of total assets as at 31st December 2024 and 94.6% of gross income and 95.2% of profit after tax for the year under review. The Group’s operations are primarily based in Sri Lanka.
Reporting Period
This Report covers the financial year from 1st January to 31st December 2024. The Bank adopts an annual reporting cycle and builds on the previous report for the financial year ended 31st December 2023. Material developments in the operating environment and post balance sheet events up to the date of Board approval on 17th February 2025 have also been included.
Information Gathering and Report Preparation
Information for the preparation of the Annual Report was obtained from multiple sources including internal data, interviews with the Bank’s Chairman, Managing Director and Corporate Management teams and verified external sources. The preparation of the Report was overseen by a dedicated internal team.
Changes to Reporting
There were no major changes to the Bank’s size, shareholding, structure or operations during the year under review. There were also no major restatements of financial or non-financial information disclosed in our previous Annual Report.
Scope and Boundary
This Report covers the operations of Sampath Bank PLC and its four subsidiaries based in Sri Lanka. The financial information in the financial statements has been presented for both the Bank and the Group. The non-financial, risk management and corporate governance information pertains only to Sampath Bank PLC unless specified otherwise. The narrative also includes information on emerging risks and opportunities from the operating environment and the outcomes attributable to key stakeholders. The Group’s reporting boundary is presented alongside.
Reporting Frameworks
We are committed to enhancing our reporting by adopting voluntary standards and best practices to reflect the evolving reporting landscape while consistently fulfilling all mandatory reporting requirements.
- CBSL issued the Banking Act Direction No. 05 of 2024 on Corporate Governance for Licensed Banks during the year. We have evaluated the requirements outlined in the Direction and intend to adhere with all requirements within the timelines stipulated in the Direction.
- Compliance with the Section 9 of Listing Rules of the Colombo Stock Exchange within the stipulated timelines.
- Compliance with the Code of Best Practice on Corporate Governance 2023 issued by the Institute of Chartered Accountants of Sri Lanka.
- We continued to align our processes with the requirements of SLFRS S1 and S2, the localised versions of the IFRS S1 and S2 Sustainability Reporting Standards issued by the Institute of Chartered Accountants of Sri Lanka and intend to fulfil its requirements within the stipulated timeline.
- As part of our alignment with SLFRS S1 and S2, we initiated reporting on the Commercial Banks, Consumer Finance and Mortgage Finance standards issued by the Sustainability Accounting Standards Board (SASB).
The 2024 Annual Report aligns with the following regulatory and voluntary reporting standards
Financial Reporting (Regulatory)
- Sri Lanka Accounting Standards issued by the Institute of Chartered Accountants of Sri Lanka
- Companies Act No. 07 of 2007 and its amendments
- Banking Act No. 30 of 1988 and its amendments
- Listing Rules of the Colombo Stock Exchange (CSE)
- Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995
Integrated Reporting (Voluntary)
- The International Integrated Reporting <IR> Framework of the International Integrated Reporting Council (IIRC)
- "A Preparer's Guide to Integrated Reporting" issued by the Institute of Chartered Accountants of Sri Lanka
Corporate Governance, Compliance and Risk Reporting (Regulatory)
- Listing Rule No. 9 of the Colombo Stock Exchange
- Banking Act Direction No. 05 of 2024 on Corporate Governance for Licensed Banks in Sri Lanka
- Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka (2023)
- Banking Act Direction No. 01 of 2016 on Capital Requirements under BASEL III and its amendments
- Banking Act No. 30 of 1988 and its amendments
- Companies Act No. 07 of 2007 and its amendments
Sustainability Reporting (Voluntary unless otherwise stated)
- United Nations (UN) Sustainable Development Goals (SDGs)
- 10 Principles of UN Global Compact
- Global Reporting Initiative (GRI) issued by the Global Sustainability Standards Board (GSSB)
- Task Force on Climate Related Financial Disclosures (TCFD)
- Sustainability Accounting Standards for Commercial Banks, Consumer Finance and Mortgage Finance issued by the Sustainability Accounting Standards Board (SASB) of the IFRS Foundation
- Guideline on Environmental, Social and Governance (ESG) Reporting issued by the CSE
- Banking Act Direction No. 05 of 2022 on Sustainable Finance Activities of Licensed Banks (Regulatory)
- ISO 14064-1:2018 Organisation Level for Quantification and Reporting of Greenhouse Gas (GHG) Emissions and Removal
- GHG Protocol Corporate Accounting and Reporting Standard
ASSESSING MATERIALITY
The Bank adopts a formal approach to assessing materiality. This entails evaluating an extensive list of potential material topics using a double materiality lens taking into the consideration of its impact on the Bank’s ability to create value as well as its impact on our stakeholders and the environment. Assessing materiality was improved during the year under review through the adoption of a quantitative approach to determining material topics.
5
New material topics included
Zero
Material topics removed
Corporate Governance
Aligned Corporate Governance with the requirements of the Banking Act Direction No. 05 of 2024 on Corporate Governance for Licensed Banks in Sri Lanka, CSE Listing Rule No. 9 on Corporate Governance and the Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka (2023).
Sustainability Reporting
Initiated reporting inline with the Sustainability Accounting Standards Board (SASB) Standards for Commercial Banks, Consumer Finance and Mortgage Finance.
Digital Innovation
Introduced the first ever Sampath Bank AI Powered Digital Annual Report with a Chart Generator to enhance stakeholder engagement, enabling interactive and insightful exploration of key information from the Annual Report.
View the AI Powered Digital Version of this Annual Report Online
Building on our 2023 Annual Report, the cover visual, content separator designs and infographics featured in this Report were also generated using Artificial Intelligence (AI) technology.
Improved the graphical representation of the Report.
Improved the conciseness of the Report.
Combined Assurance
Sampath Bank adopts a combined assurance methodology to ensure the integrity of the information presented in this Integrated Report. Internally, the Bank’s Management assesses the reporting processes and reviews the financial and non-financial data presented in the Integrated Report. External assurance was obtained from Messrs Ernst and Young, Chartered Accountants on the Bank’s Financial Statements (pages 270 to 272), Directors' Statement on Internal Control Over Financial Reporting (pages 264 and 265), Sustainability Reporting (pages 464 and 465) and Integrated Reporting (pages 462 and 463). Independent assurance was obtained from Sri Lanka Climate Fund on the Bank’s GHG Inventory Report 2024 to ensure the alignment with ISO 14064-1:2018 Standard Organisation Level for Quantification and Reporting of GHG Emissions and Removals.
How to Navigate the Report
Corporate Governance
Risk Management
Financial Capital
Manufactured Capital
Digital Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Natural Capital
Shareholders and Other Investors
Employees
Customers
Community
Government and Regulators
Suppliers and Service Providers
Business
People
Technology
Sustainability
Forward Looking Statements
Our Integrated Annual Report includes forward-looking statements that reflect our current expectations and projections of future events. These statements have been deemed reasonable at the time of publication and have been included given its importance in assessing our potential to create value in the short-to-medium term. However, these statements are inherently uncertain as it relates to future events, outcomes and impacts that lie beyond the control of the Group. Therefore, users are advised to exercise caution when relying on forward- looking statements as future events may differ materially from those expressed in this Report. Given the above, all forward-looking statements are provided without recourse or any liability whatsoever to the Board or other preparers of the Annual Report.
Sampath Bank’s unending commitment to reporting excellence has urged the Bank to progressively enhance the scope and scale of its reporting disclosures with each successive Annual Report. To that end, the Annual Report for FY 2024 represents another important milestone in the Bank’s efforts to improve transparency and accessibility of information in line with globally accepted reporting best practices.
- Stand-alone Report
- GRI 3.1 Level B External Assurance Provided
- Incorporated in Annual Report
- GRI 3.1 Level B External Assurance Provided
- Stand-alone Report
- GRI G4 -Comprehensive External Assurance Provided
- Integrated Report
- GRI G4 - Comprehensive External Assurance Provided
- Integrated Report
- GRI Standards - Comprehensive External Assurance Provided
- Integrated Report
- In Accordance with the GRI Standards
- External Assurance Provided
- Key highlights from the Integrated Annual Report are available in video form, accessible on the Corporate Website.
- Integrated Annual Report
- In Accordance with the GRI Standards
- External Assurance Provided
- Integrated Report
- In Accordance with the GRI Standards
- Enhanced TCFD Reporting
- Initiated Reporting on the SASB Standards
- AI Powered Digital Version of the Annual Report
BOARD RESPONSIBILITY STATEMENT
Sampath Bank PLC’s Board of Directors is responsible for the integrity of the Integrated Annual Report. The Board confirms that the Integrated Annual Report for the financial year ended 31st December 2024 represents a balanced view of the Bank’s performance and addresses all material issues that are likely to impact the Bank’s ability to create value in the short term.
FEEDBACK
The Board welcomes stakeholder feedback on this Integrated Annual Report 2024 and requests readers to utilise the Feedback Form provided on pages 475 and 476 of this Report to share suggestions, comments and feedback. Thank you for your valuable input.
For page references in this Digital Annual Report, please refer to the Printed Annual Report or PDF Version of the Annual Report.