FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 20 JUN 2026 · EOD

SAMP

Sampath Bank
BANKS

LAST · LKR

143.67
+1.87 ▲ +1.32%
P/E 5.5× · YIELD 7.2% · ROE 16.9%

52W RANGE

141.30174.14
7% OF RANGE · YTD −8.7%
01 / SAMP — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
BUY+22%
175.00LKR · 12-MO
6.2× FY26E

Credit growth revives; yield carries the return.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Value and a 7% yield in a healing system

  1. 01

    Buy, LKR 175 target: SAMP offers a 17% ROE and a 7.2% dividend yield — the best in the banks — at 5.5×.

  2. 02

    A retail and SME franchise geared to the credit-growth recovery as policy rates fall.

  3. 03

    The 7.2% yield pays you generously while the multiple re-rates.

  4. 04

    At ~6.2× FY26E our LKR 175 target plus the yield clears a 25%+ total return.

Where we differ from the street
Street viewOur viewWe change our mind if
A high payout in a recovering sector is fragile.Coverage is adequate and improving as earnings recover; a genuine support.A payout cut or a capital strain.
Smaller franchise, more risk.A 17% ROE and 7% yield more than compensate; the discount is too wide.Asset quality deteriorating versus peers.
Spreads compress.Volume growth and lower provisions cushion it; the yield pays you to wait.Sharp NIM compression with no offset.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE