INCOME STATEMENT Rupees in Thousands

BANK GROUP

For the 9 months For the quarter For the 9 months For the quarter

ended 30th September ended 30th September ended 30th September ended 30th September

Change Change Change Change

2010 2009 % 2010 2009 % 2010 2009 % 2010 2009 %

Income 16,417,157 18,509,278 (11.3) 5,199,674 6,350,219 (18.1) 16,783,216 18,837,367 (10.9) 5,352,665 6,437,206 (16.8)

Interest Income 13,858,753 15,802,520 (12.3) 4,584,315 5,213,249 (12.1) 14,041,214 16,157,140 (13.1) 4,650,545 5,348,607 (13.1)

Interest Income on Loans and Advances 10,545,192 11,844,226 (11.0) 3,566,354 3,866,101 (7.8) 10,726,427 12,193,465 (12.0) 3,632,292 4,002,858 (9.3)

Interest Income on Other Interest Earning Assets 3,313,562 3,958,294 (16.3) 1,017,962 1,347,148 (24.4) 3,314,787 3,963,675 (16.4) 1,018,254 1,345,749 (24.3)

Less: Interest Expenses 7,528,596 10,248,477 (26.5) 2,519,836 3,278,305 (23.1) 7,596,887 10,488,093 (27.6) 2,537,441 3,321,837 (23.6)

Interest Expense on Deposits 6,777,938 8,961,257 (24.4) 2,249,151 2,952,932 (23.8) 6,775,552 8,955,063 (24.3) 2,248,709 2,950,277 (23.8)

Interest Expense on Other Interest Bearing Liabilities 750,658 1,287,220 (41.7) 270,685 325,373 (16.8) 821,335 1,533,030 (46.4) 288,732 371,559 (22.3)

Net Interest Income 6,330,157 5,554,044 14.0 2,064,479 1,934,945 6.7 6,444,327 5,669,048 13.7 2,113,105 2,026,770 4.3

Non - Interest Income 2,558,404 2,706,758 (5.5) 615,359 1,136,970 (45.9) 2,742,002 2,680,227 2.3 702,120 1,088,600 (35.5)

Foreign Exchange Income 394,840 635,307 (37.9) 106,060 181,055 (41.4) 394,840 635,307 (37.9) 106,060 181,055 (41.4)

Other Income 2,163,564 2,071,451 4.4 509,299 955,915 (46.7) 2,347,162 2,044,920 14.8 596,060 907,545 (34.3)

Net Income 8,888,561 8,260,801 7.6 2,679,838 3,071,914 (12.8) 9,186,329 8,349,274 10.0 2,815,225 3,115,370 (9.6)

Less: Non - Interest Expenses 4,731,105 4,000,718 18.3 1,686,232 1,374,012 22.7 4,795,792 4,038,773 18.7 1,711,523 1,389,336 23.2

Personnel Costs 1,990,989 1,703,468 16.9 686,382 574,296 19.5 2,042,788 1,748,414 16.8 705,437 588,917 19.8

Provision for Staff Retirement Benefits 266,575 237,199 12.4 88,858 79,066 12.4 267,446 238,938 11.9 89,339 79,701 12.1

Premises, Equipment and Establishment Expenses 1,609,828 1,444,062 11.5 587,259 493,668 19.0 1,588,106 1,421,408 11.7 580,536 486,304 19.4

Other Operating Expenses 863,712 615,989 40.2 323,732 226,981 42.6 897,453 630,013 42.5 336,210 234,414 43.4

Less: Provision for Bad and Doubtful

Debts and Loans Written Off 291,071 231,571 25.7 (337,803) 164,909 (304.8) 283,291 319,588 (11.4) (342,878) 193,108 (277.6)

Provisions - General 142,655 (54,906) (359.8) 98,300 2,578 3713.0 142,655 (54,906) (359.8) 98,300 2,578 3,713.0

Provisions - Specific 1,182,928 647,043 82.8 (203,031) 278,789 (172.8) 1,175,147 735,060 59.9 (208,106) 306,987 (167.8)

Recoveries (-) (1,034,568) (360,690) 186.8 (233,072) (116,503) 100.1 (1,034,568) (360,690) 186.8 (233,072) (116,503) 100.1

Loans Written Off 56 125 (55.0) - 45 (100.0) 56 125 (55.0) - 45 (100.0)

Less: Provision/(Reversal) for Decline in Value

of Investments (Net) (265,051) 505,813 (152.4) (324,319) 133,751 (342.5) (265,051) 505,826 (152.4) (324,319) 133,751 (342.5)

Operating Profit on Ordinary Activities Before Taxes 4,131,436 3,522,698 17.3 1,655,728 1,399,241 18.3 4,372,297 3,485,087 25.5 1,770,899 1,399,175 26.6

Less: Value Added Tax on Financial Services 1,138,893 952,945 19.5 435,350 362,453 20.1 1,159,935 961,131 20.7 443,318 365,185 21.4

Operating Profit on Ordinary Activities

Before Corporate Tax 2,992,543 2,569,753 16.5 1,220,379 1,036,788 17.7 3,212,361 2,523,956 27.3 1,327,581 1,033,990 28.4

Share of Associate Company's Profit - - - - - - - 160,391 (100.0) - 70,097 (100.0)

Operating Profit Before Corporate Tax 2,992,543 2,569,753 16.5 1,220,379 1,036,788 17.7 3,212,361 2,684,347 19.7 1,327,581 1,104,087 20.2

Less:Tax on Profits on Ordinary Activities 983,320 1,239,528 (20.7) 512,801 536,328 (4.4) 1,046,180 1,294,437 (19.2) 527,047 563,507 (6.5)

Operating Profit After Corporate Tax 2,009,223 1,330,225 51.0 707,578 500,460 41.4 2,166,181 1,389,910 55.9 800,534 540,580 48.1

Less: Minority Interest - - - - - - 32,362 6,380 407.3 11,204 3,523 218.0

Operating Profit For the Period 2,009,223 1,330,225 51.0 707,578 500,460 41.4 2,133,819 1,383,530 54.2 789,330 537,057 47.0

Earning Per Share - Basic (Rs) 26.30 17.41 51.0 9.26 6.55 41.4 27.93 18.11 54.2 10.33 7.03 47.0
 BALANCE SHEET Rupees in Thousands

BANK GROUP
As at As at Change As at As at Change
30.09.2010 31.12.2009 % 30.09.2010 31.12.2009 %
(Audited) (Audited)

On-Balance Sheet Assets

Cash in Hand 3,447,358 2,757,207 25.0 3,447,480 2,757,316 25.0
Balances with Central Bank of Sri Lanka/Other Central Banks 7,880,259 7,397,703 6.5 7,880,259 7,397,703 6.5
Due from Banks and Other Financial Institutions 1,821,607 6,249,174 (70.9) 1,828,118 6,256,576 (70.8)
Investments - Trading Account 35,013,724 276,207 12,576.6 35,013,724 276,207 12,576.6
Government Securities 34,149,975 - 100.0 34,149,975 - 100.0
Other Securities 863,749 276,207 212.7 863,749 276,207 212.7
Investments - Held-to-Maturity (Net of provisions made for decline in
investment value/ Excluding Investments in Associates and Subsidiaries) 8,462,157 39,031,966 (78.3) 8,626,664 39,248,884 (78.0)
Government Securities 7,934,137 38,029,326 (79.1) 7,942,593 38,058,955 (79.1)
Other Securities 528,020 1,002,640 (47.3) 684,071 1,189,930 (42.5)
Investments in Associates and Subsidiaries 991,626 991,626 - - - -
Total Loans and Advances
Total Performing Loans and Advances 110,403,813 90,442,809 22.1 111,025,473 91,196,618 21.7
Bills of Exchange 2,698,130 2,826,266 (4.5) 2,698,130 2,826,266 (4.5)
Overdrafts 19,518,476 15,341,547 27.2 19,465,882 15,263,111 27.5
Lease Rentals Receivable 2,745,296 3,142,106 (12.6) 3,880,925 4,611,604 (15.8)
Other Loans 85,441,910 69,132,890 23.6 84,980,536 68,495,637 24.1
Total Non-Performing Loans and Advances 7,106,040 8,242,530 (13.8) 7,246,030 8,485,779 (14.6)
Bills of Exchange 336,974 159,165 111.7 336,974 159,165 111.7
Overdrafts 1,323,611 1,394,520 (5.1) 1,323,611 1,394,520 (5.1)
Lease Rentals Receivable 258,324 368,934 (30.0) 398,314 612,183 (34.9)
Other Loans 5,187,131 6,319,911 (17.9) 5,187,131 6,319,911 (17.9)
Total Gross Loans and Advances 117,509,853 98,685,339 19.1 118,271,503 99,682,397 18.6
Less:
Suspended Interest 721,314 768,623 (6.2) 721,314 768,623 (6.2)
Specific Loan Loss Provisions 4,127,337 4,061,243 1.6 4,225,060 4,231,175 (0.1)
General Loan Loss Provisions 818,924 678,741 20.7 818,924 678,741 20.7
Net Loans and Advances 111,842,277 93,176,732 20.0 112,506,205 94,003,858 19.7
Other Assets 2,867,926 2,789,629 2.8 3,771,018 3,247,114 16.1
Intangible Assets 89,794 71,171 26.2 107,066 82,630 29.6
Property, Plant & Equipment 3,665,824 3,420,483 7.2 4,950,819 4,731,762 4.6
(Net of accumulated depreciation of fixed assets)
Total on Balance Sheet Assets 176,082,552 156,161,897 12.8 178,131,353 158,002,050 12.7

On-Balance Sheet Liabilities

Total Deposits 143,222,811 126,090,964 13.6 143,071,861 125,974,257 13.6

Demand Deposits 13,573,949 9,627,135 41.0 13,494,196 9,616,881 40.3
Savings Accounts 56,478,014 41,826,778 35.0 56,478,014 41,826,778 35.0
Time Deposits 72,627,731 74,235,978 (2.2) 72,556,535 74,129,525 (2.1)
Margin Deposits 543,116 401,074 35.4 543,116 401,074 35.4
Total Borrowings 13,003,762 11,686,526 11.3 13,391,281 12,357,546 8.4
Borrowings from CBSL 1,610 9,839 (83.6) 1,610 9,839 (83.6)
Borrowings from Banks and Financial Institutions in Sri Lanka 6,310,224 5,193,497 21.5 6,697,758 5,865,118 14.2
Borrowings from Banks and Financial Institutions Abroad 166,845 482,652 (65.4) 166,845 482,652 (65.4)
Securities Sold Under Repurchase Agreements 3,345,308 2,887,480 15.9 3,345,308 2,887,480 15.9
Subordinated Term Debts 3,173,920 3,102,468 2.3 3,173,920 3,102,468 2.3
Other Borrowings 5,854 10,591 (44.7) 5,839 9,989 (41.5)
Current Taxation 733,133 578,757 26.7 767,268 583,664 31.5
Deferred Taxation 340,606 481,199 (29.2) 325,134 478,636 (32.1)
Other Liabilities 5,423,171 5,478,270 (1.0) 6,199,692 5,900,918 5.1

Total on Balance Sheet Liabilities 162,723,483 144,315,716 12.8 163,755,236 145,295,022 12.7

Equity Capital & Reserves 13,359,070 11,846,181 12.8 14,249,277 12,611,801 13.0
Stated Capital 1,786,250 1,581,654 12.9 1,786,250 1,581,654 12.9
Statutory Reserve Fund 504,425 471,013 7.1 504,713 471,301 7.1
Total Other Reserves 11,068,395 9,793,514 13.0 11,958,314 10,558,846 13.3

Minority Interest - - - 126,840 95,228 33.2

Total On-Balance Sheet Liabilities and Equity Capital & Reserves 176,082,552 156,161,897 12.8 178,131,353 158,002,050 12.7

Off-Balance Sheet Items and Contra Accounts 71,132,381 62,021,644 14.7 71,132,381 62,021,644 14.7
Contingencies 49,900,686 45,424,724 9.9 49,900,686 45,424,724 9.9
Commitments and Contra Accounts 21,231,695 16,596,920 27.9 21,231,695 16,596,920 27.9

Net Assets Value Per Share (Rs) 174.8 172.0 1.7 186.5 183.1 1.9

Memorandum Information
Number of Employees 2,624 2,388 2,759 2,518
Number of Branches 159 131 167 139
 SEGMENTAL ANALYSIS - GROUP Rupees in Thousands

Banking Leasing Dealing/Investments Others Elimination/Unallocated Total

For the nine months ended 30th September
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Interest 13,416,986 15,189,539 - - 2,211 98,392 1,803 1,386 (53,049) (104,218) 13,367,952 15,185,100
Lease Income - - 673,262 972,041 - - - - - - 673,262 972,041
Dividends 65,228 94,824 - - - - - - - - 65,228 94,824
Commissions 965,510 857,349 - - - - - - - - 965,510 857,349
Exchange 394,840 635,307 - - - - - - - - 394,840 635,307
Others 1,132,826 1,119,278 72,437 51,767 141,130 26,851 143,397 135,192 (173,365) (240,341) 1,316,424 1,092,747
Total revenue from external customers 15,975,390 17,896,297 745,699 1,023,808 143,341 125,243 145,200 136,578 (226,414) (344,559) 16,783,216 18,837,367
Inter segment revenue (65,228) (94,824) - - 65,228 94,824 - - - - - -
Total revenue 15,910,162 17,801,473 745,699 1,023,808 208,569 220,067 145,200 136,578 (226,414) (344,559) 16,783,216 18,837,367

Segment Result 2,860,013 2,385,859
Share of Associate Company's Profit - -
Profit from Operations - -
Income Tax expenses - -
Minority Interest - -
Net profit for the period - -
236,232 107,646 94,762 40,892 79,339 55,801 (57,985) (66,242) 3,212,361 2,523,956
- - - - - - - - - 160,391
- - - - - - - - 3,212,361 2,684,347
- - - - - - - - 1,046,180 1,294,437
- - - - - - - - 32,362 6,380
- - - - - - - - 2,133,819 1,383,530

Segment Assets 161,995,948 139,378,356 15,735,187 14,378,474 598,364 800,234 1,365,330 1,361,822 (1,563,475) (2,187,404) 178,131,353 153,731,482
Unallocated Assets - - - - - - - - - - - -
Total Assets 161,995,948 139,378,356 15,735,187 14,378,474 598,364 800,234 1,365,330 1,361,822 (1,563,475) (2,187,404) 178,131,353 153,731,482
- -
Segment Liabilities 150,749,869 130,365,330 13,136,277 12,175,930 407,579 251,545 195,621 264,782 (734,109) (1,378,481) 163,755,236 141,679,107
Unallocated Liabilities - - - - - - - - - - - -
Total Liabilities 150,749,869 130,365,330 13,136,277 12,175,930 407,579 251,545 195,621 264,782 (734,109) (1,378,481) 163,755,236 141,679,107

Cash flows from

Operating activities 3,698,097 14,789,387 433,144 1,022,394 3,829 (44,845) 18,194 102,637 (181,273) (101,790) 3,971,990 15,767,782
Cash flows from
Investing Activities (3,379,793) (13,766,258) (3,271) 1,427 76,110 (66,344) (285 ) (375) (62,182) 327,396 (3,369,422 ) (13,504,154)
Cash flows from
Financing Activities 371,847 (1,540,612) (411,921) (528,163) - - (3,275 ) (56,075) 130,946 (656,214) 87,596 (2,781,065)
Capital Expenditure 595,732 293,060 14,601 148 922 141 285 375 (4,999) (16,733) 606,542 276,990
 STATEMENT OF CHANGES IN EQUITY AND RESERVES Rupees in Thousands

BANK Stated Capital & Reserves

For the nine months ended 30.09.2009 Risk Reserve Revaluation Income
Stated Capital Statutory General Shareholders' Fund
Reserve Fund Fund Reserve Reserve Statement
Balance as at 01.01.2009 1,581,654 407,730 - 1,157,576 6,353,709 275,660 9,776,330
Issue of Share/Increase of assigned capital - - - - - - -
Bonus Issue - - - - - - -
Rights Issue - - - - - - -
Surplus on revaluation of property - - - - - - -
Net profit for the period - - - - - 1,330,225 1,330,225
Transfer to reserves during the period - - - - - - -
Final Dividend Paid 2008 - - - - - (275,551 ) (275,551 )
Others - - - - - - -
Balance as at 30.09.2009 1,581,654 407,730 - 1,157,576 6,353,709 1,330,335 10,831,004

For the nine months ended 30.09.2010

Balance as at 01.01.2010 1,581,654 449,697 21,316 1,152,615 8,167,187 473,712 11,846,181

Issue of Share/Increase of assigned capital - - - - - - -
Bonus Issue - - - - - - -
Rights Issue - - - - - - -
Surplus on revaluation of property - - - - - - -
Net profit for the period - - - - - 2,009,223 2,009,223
Transfer to reserves during the period - 26,033 7,380 - - (33,412 ) -
Final Dividend Paid 2009 - - - - - (473,602 ) (473,602 )
Scrip Dividend - 2010 204,596 - - - - - (227,329 ) (22,733 )
Others - - - - - - -
Balance as at 30.09.2010 1,786,250 475,730 28,696 1,152,615 8,167,187 1,748,591 13,359,070

Number of shares as at 30th September 2010 is 76,403,986.

 STATEMENT OF CHANGES IN EQUITY AND RESERVES Rupees in Thousands

GROUP Stated Capital & Reserves

For the nine months ended 30.09.2009
Stated Statutory Risk Reserve Revaluation General Income Shareholders' Minority Total
Capital Reserve Fund Fund Reserve Reserve Statement Fund Interest
Balance as at 01.01.2009 1,581,654 408,019 14,262 1,755,392 6,336,143 724,360 10,819,830 119,590 10,939,419
Issue of Share/Increase of assigned capital - - - - - - - - -
Bonus Issue - - - - - - - - -
Rights Issue - - - - - - - - -
Surplus on revaluation of property - - - - - - - - -
Net profit for the period - - - - - 1,383,530 1,383,530 6,380 1,389,910
Transfer to reserves during the period - - - - - - - - -
Redemption of Preference Shares - - - - - - - - -
Interim Dividend Paid - 2009 - - - - - - - - -
Final Dividend Paid 2008 - - - - - (275,551) (275,551 ) (1,400 ) (276,951 )
Change in Holding Associate Company's Share - - - - - - - - -
Others - - - - - - - - -
Balance as at 30.09.2009 1,581,654 408,019 14,262 1,755,392 6,336,143 1,832,340 11,927,810 124,569 12,052,379

For the nine months ended 30.09.2010

Balance as at 01.01.2010 1,581,654 449,985 21,316 1,768,543 7,911,820 878,475 12,611,793 95,228 12,707,021
Issue of Share/Increase of assigned capital - - - - - - - - -
Bonus Issue - - - - - - - - -
Rights Issue - - - - - - - - -
Surplus on revaluation of property - - - - - - - - -
Net profit for the period - - - - - 2,133,819 2,133,819 32,362 2,166,181
Transfer to reserves during the period - 26,033 7,380 - - (33,412) - - -
Redemption of Preference Shares - - - - - - - - -
Interim Dividend Paid - 2010 - - - - - - - - -
Final Dividend Paid 2009 - - - - - (473,602) (473,602 ) (750 ) (474,352 )
Scrip Dividend - 2010 204,596 - - - - (227,329) (22,733 ) - (22,733 )
Change in Holding Associate Company's Share - - - - - - - - -
Others - - - - - - - - -
Balance as at 30.09.2010 1,786,250 476,018 28,696 1,768,543 7,911,820 2,277,950 14,249,277 126,840 14,376,117

Number of shares as at 30th September 2010 is 76,403,986.

 CASH FLOW STATEMENT Rupees in Thousands

BANK GROUP

For the nine months ended 30th September 2010 2009 2010 2009

Cash flow from operating activities

Interest receipts 13,858,753 15,802,520 14,041,214 16,157,140

Interest payments (7,528,596 ) (10,248,477) (7,596,887) (10,488,093)

Receipts from other operating activities 1,897,636 1,981,064 2,112,465 2,026,838

Cash payments to employees and suppliers (3,269,049 ) (2,854,616) (3,267,845) (2,854,931)

Payments for other operating activities (2,002,605 ) (1,568,935) (2,057,389) (1,588,485)

Operating profit before changes in operating assets 2,956,139 3,111,556 3,231,558 3,252,469
(Increase)/Decrease in operating assets

Dues from Banks & Other Financial Institutions 4,427,566 1,854,505 4,428,458 1,796,924

Balance with Central Bank of Sri Lanka (482,557 ) (456,395) (482,557) (456,232)

Funds advanced to customers (18,956,617 ) (1,827,585) (18,785,637) (1,023,671)

Other assets (78,297 ) 269,963 (523,910) 227,434

(15,089,904 ) (159,512) (15,363,646) 544,456

Increase/(Decrease) in operating liabilities

Deposits from customers 17,131,847 13,053,792 17,097,604 12,978,643

Other liabilities (330,449 ) 70,628 22,553 282,492

16,801,398 13,124,419 17,120,158 13,261,134

Net cash flow from operating activities before income tax 4,667,633 16,076,464 4,988,069 17,058,060

Income tax paid (969,537 ) (1,287,077) (1,016,079) (1,290,278)

Net cash flow from operating activities 3,698,097 14,789,387 3,971,990 15,767,782

Cash flow from investing activities

Sales proceeds from sale of associate company's shares - 756,332 - 756,332

Investments in subsidiary companies - (300,000) - -

Sale/(Purchase) of trading securities (5,862,642 ) 513,763 (5,862,642) 522,894

Sale/(Purchase) of investment securities 2,620,753 (14,299,274) 2,641,935 (13,878,923)

Securities sold under repurchase agreements 457,828 (144,019) 457,828 (627,467)

Purchase of property, plant and equipment (595,732 ) (293,060) (606,542) (276,990)

Net cash flow from investing activities (3,379,793 ) (13,766,258) (3,369,422) (13,504,154)

Cash flow from financing activities

Minority Interest - - (750) (1,400)

Increase/(Decrease) in borrowings from CBSL &

Financial Institutions 792,691 174,778 508,604 (1,065,284)

Increase/(Decrease) in Other borrowings (4,737 ) (5,300) (4,150) (4,291)

Increase/(Decrease) in Bonds 71,452 (1,434,540) 71,452 (1,434,540)

Payment of Dividends (487,560 ) (275,551) (487,560) (275,551)

Net cash flow from financing activities 371,847 (1,540,612) 87,596 (2,781,065)

Net Increase/(Decrease) in cash and cash equivalents 690,150 (517,484) 690,165 (517,436)

Cash and cash equivalents at the beginning of the year 2,757,207 2,450,375 2,757,316 2,450,451

Cash and cash equivalents at the end of the period 3,447,358 1,932,891 3,447,480 1,933,015
 SELECTED PERFORMANCE INDICATORS
As at As at As at As at
30.09.2010 31.12.2009 30.09.2010 31.12.2009
(Audited) (Audited)

Bank (Solo Basis) Group

Regulatory Capital Adequacy
Core Capital (Tier 1 Capital), Rs. Mn 10,991 9,930 11,513 10,426
Total Capital Base, Rs. Mn 13,735 12,834 14,520 13,592
Core Capital Adequacy Ratio, % of Risk Weighted Assets (Minimum Requirement, 5%) 9.81 10.40 10.03 10.64
Total Capital Adequacy Ratio, % of Risk Weighted Assets (Minimum Requirement, 10%) 12.26 13.45 12.64 13.87

As at As at
30.06.2010 31.12.2009
(Audited)
Bank
Assets Quality (Quality of Loan Portfolio)
Gross Non - Performing Advances Ratio, % (Net of Interest in Suspense) 5.47 7.63
Net Non - Performing Advances Ratio, % (Net of Interest in Suspense and Provision) 1.23 2.79

Profitability
Interest Margin, % 5.08 5.30
Return on Assets (Before Tax) % 2.40 2.70
Return on Equity (After Tax) % 21.28 19.41

Regulatory Liquidity
Statutory Liquid Assets, Rs.Mn.
Bank 48,781 42,276
Domestic Banking unit 45,594 40,212
Off-Shore Banking Unit 3,193 2,755
Statutory Liquid Assets Ratio,% (Minimum Requirement, 20%)
Bank 31.36 30.52
Domestic Banking unit 30.78 30.19
Off-Shore Banking Unit 37.69 29.45

CERTIFICATION:
I certify that the above financial statements give a true and fair view of the state of affairs as at 30th September 2010 and its profits for the nine months then ended.

(Sgd)
Ranjith Samaranayake
Executive Director/Group Chief Financial Officer

We, the undersigned, being the Chairman and the Chief Executive Officer of Sampath Bank PLC. certify jointly that:-
(a) the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka ; and
(b) the information contained in these statements have been extracted from the unaudited financial statements of the bank unless indicated as audited.

(Sgd) (Sgd)
I W Senanayake Harris Premaratne
Chairman Executive Director/Chief Executive Officer
21st October 2010
 DEBENTURES
(a) Market Values Highest Lowest Period End

Debentures - 2007/2012 2010 2009 2010 2009 2010 2009

Fixed - 17.5% 100.00 Not Traded 100.00 Not Traded 100.00 Not Traded

Fixed - 15.5% 90.00 Not Traded 90.00 Not Traded 90.00 Not Traded

Floating rate Not Traded Not Traded Not Traded Not Traded Not Traded Not Traded

(b) Interest Rates 2010 2009

Debentures - 2007/2012 Coupon Effective Coupon Effective

Rate Rate Rate Rate

Fixed - 17.5% 17.50% 17.50% 17.50% 17.50%

Fixed - 15.5% 15.50% 16.65% 15.50% 16.65%

Floating rate - - - -

Debentures - 2006/2011 (Not Listed)

Floating rate is equivalent to the one year weighted avg. Treasury Bill rate (gross)

plus 1.5% p.a., payable annually.

Debentures - 2007/2012

Floating rate is equivalent to the three months Treasury Bill rate (gross) plus 1.5%

p.a., payable quarterly.

Debentures - 2007/2012 (Not Listed)

Floating rate is equivalent to the six months weighted avg. Treasury Bill rate (gross)

plus 1.75% p.a., payable semi annually.

(C) Interest rate of comparable government securities

2010 2009

2 Year Treasury Bond 8.27% 12.50%

3 Year Treasury Bond 8.57% 12.83%

4 Year Treasury Bond 9.09% 11.35%

5 Year Treasury Bond 8.76% 11.44%

(d) Current Yield & Yield to maturity

Fixed 17.50% Fixed 15.50% Floating

2010 2009 2010 2009 2010 2009

Debentures -
2007/2012
Current yield 17.50% Not Traded 18.50% Not Traded - Not Traded

Yield to maturity
of last trade 17.47% Not Traded 22.67% Not Traded - Not Traded

(e) Ratios 2010 2009

Debt to Equity Ratio (%) 23.8 26.2

Interest Cover (Times) 16.44 9.43

Quick Asset Ratio (%) 83.7 78.1

 NOTES – ACCOUNTING POLICIES
1 There are no changes to the accounting policies and methods of computation since the
publication of the annual accounts for the year 2009.
The group financial statements comprise a consolidation of the bank and its subsidiaries,
Sampath Centre Ltd, SC Securities (Pvt) Ltd, Sampath Leasing & Factoring Ltd and Sampath
Information Technology Solutions Ltd
This move created 627,596 fully paid new shares, which were allotted to the shareholders as
part of their dividend for 2010. The entire cost of the scrip dividend was funded by the profits
of the bank for 2010 and hence there was no capitalisation of reserves. However, the stated
capital of the bank rose by Rs.204,596,253/- being the value of the new shares created.
Consequently, the number of shares in issue too rose from the existing 75,776,390 to
76,403,986 shares.

As required by section 56(2) of the Companies Act No. 7 of 2007, the Board of Directors has
2 Market Price of a share 2010 2009
confirmed that the bank has satisfied the Solvency Test in accordance with section 57 of the
Market Price as at 30th September (Rs) 514.00 170.00
Companies Act No. 7 of 2007 and obtained a certificate from the external auditors for the
Highest Market Price during the quarter same.
ended 30th September (Rs) 550.00 177.50
Lowest Market Price during the quarter 7.2 Sub Division of Shares or share-split
ended 30th September (Rs) 330.00 101.00 This was a share split of one for one and the second sub-division undertaken by the Bank for
the year, aimed at further increasing the market liquidity of the Sampath Bank share.
3 During the period, there were no material changes in contingent liabilities, composition of Consequently, every Sampath Bank share held by the shareholders was sub-divided on 12th
Assets and Liabilities and use of funds raised through debentures. October 2010 into two and the number of shares was increased by 100% from 76,403,986 to
152,807,972. There was no increase in the stated capital.

4 "During the period under review, 1.2 Mn shares received as bonus shares from LankaBangla
Finance Ltd. were sold in the Dhaka Stock Exchange. Due to this, Bank's holding of 13.55% 7.3 Share Option to the Staff
as at 31.12.2009 was reduced to 11.29% as at 30.09.2010. “ This was undertaken to recognise the contributions made by the staff and further motivate
them. Accordingly, the bank will create 3,056,159 share options to be offered to the eligible
staff, at 2% of 152,807,972 shares, being the number immediately after the sub division of
5 During the period under review, the Bank made additional provisions on account of collateral
shares, as discussed above. The shares will be priced at Rs. 80/- per share. The scheme will
values over and above the amounts recommended by the Central Bank of Sri Lanka.
however be subject to certain performance criteria to be achieved by the Bank for 2010. The
option exercisable period would be 3 years, from the entitlement date fixed in the scheme. In
6 During the period under review, the Bank made full provision of Rs.255 Mn. on account of
the event of options being fully exercised by the eligible staff, the stated capital of the bank
investment in Union Bank shares as recommended by the Central Bank of Sri Lanka.
would rise by Rs. 244,492,720, as a result of the consideration to be paid by the staff under
the ESOP.
7 As approved by the shareholders of the Bank at the Extraordinary General Meeting held on
21.08.2010, Sampath Bank already paid a scrip dividend in September 2010 and sub-divided
8 Two Directors of the Bank, Mr. E A Gunasekera and Mr. J D Bandaranayake have vacated
the shares in the proportion of 1 for 1 in October 2010 and will implement the ESOP to the
office with effect from 17.07.2010 as per requirements of the Corporate Governance Code of
staff, as detailed below.
Central Bank of Sri Lanka for Licensed Commercial Banks.

7.1 Scrip Dividend

9 The Board of Directors of Sampath Bank PLC appointed Mr. Deepal Sooriyaarachchi as a Non
This was an interim dividend for 2010 declared in the form of fully paid shares of the Bank.
- Executive Independent Director of the Bank with effect from 05.08.2010.
The basis was Rs.3/- per existing share, valued at Rs.326/- per share, after providing for the
10% Withholding Tax.
10 Except above, no circumstances have arisen since the Balance Sheet date, which would
require adjustments to or disclosure in the Financial Statements.
 TOP 20 SHAREHOLDERS As at 30th September 2010

Name of Shareholder No. of Shares % holding

1 Employees' Provident Fund 6,300,805 8.25

2 Rosewood (Pvt) Ltd 5,252,208 6.87
3 Mr. K D D Perera - Director, Sampath Bank PLC * 3,820,157 5.00
4 Sampath Bank PLC (Account No. 2) 3,820,120 5.00
5 Vallibel Investments (Pvt) Ltd 3,819,998 5.00
6 Vallibel Leisure (Pvt) Ltd 3,818,445 5.00
7 Sri Lanka Insurance Corporation Ltd - Life Fund 3,807,698 4.98
8 Mr. Y S H I K Silva 3,358,615 4.40
9 Corporate Services Ltd (Account No. 2) 2,860,690 3.74
10 Varners International (Pvt) Ltd 2,734,528 3.58
11 SSP Corporate Services (Pvt) Ltd (Account No. 1) 2,548,565 3.34
12 Indra Traders (Pvt) Ltd 1,574,511 2.06
13 Northern Trust Co S/A - Northern Trust Fiduciary Services
(Ireland) Ltd as Trustee to Baring Asean Frontiers Fund 1,259,638 1.65
14 Sampath Bank Pension Fund 953,562 1.25
15 Mr. B A Mahipala 946,125 1.24
16 J B Cocoshell (Pvt) Ltd 764,412 1.00
17 Keystone Ltd 682,909 0.89
18 Fast Gain International Ltd 564,033 0.74
19 Mr. B W Kundanmal 551,707 0.72
20 Mrs. J A De Mel 358,272 0.47
49,796,998 65.18
Shares held by Directors 538,985 0.71
[* Mr. K D D Perera's (Director of Sampath Bank PLC) shares are indicated above]
Balance held by Other Shareholders 26,068,003 34.12
Total 76,403,986 100.00

Percentage of Public Holding as at 30th September 2010 84.30%

DIRECTORS' HOLDING & CHIEF EXECUTIVE OFFICER'S HOLDING IN SHARES OF SAMPATH BANK PLC

Director's Name No. of shares held

as at 30.09.2010 as at 31.12.2009

1 Mr. I W Senanayake 326,571 276,266

2 Mr. S G Wijesinha 688 621
3 Mr. M A Abeynaike 55,455 50,000
4 Mr. D J Gunaratne - -
5 Dr. S Kelegama - -
6 Mr. L J K Hettiaratchi 2,329 2,100
7 Mr. W M P L De Alwis 152,513 137,510
8 Mr. K D D Perera 3,820,157 3,412,769
* Vallibel Leisure (Pvt) Ltd 3,818,445 3,442,800
* Vallibel Investments (Pvt) Ltd 3,819,998 3,444,200
(* Mr. K D D Perera is the Chairman of these Companies)
9 Mr. D Sooriyaarachchi - -
10 Mr. G L H Premaratne - -
(Executive Director/Chief Executive Officer)
11 Mr. M Y A Perera 858 775
12 Mr. R Samaranayake 571 516