Sampath Bank Annual Report 2014

JUST ASKOUR STAKEHOLDERS ANNUAL REPORT 2014 FINANCIAL, SOCIAL AND ENVIRONMENTAL PERFORMANCE



JUST ASKOUR STAKEHOLDERSAt Sampath Bank, we’re very proud of the manyways in which we create value for everyone wework with; through our innovative banking productsand services, our principled business practices andethical approach and the prudent and far-sightedstrategies that have driven our trajectory of growthfor over 27 years.2FGQ©MSP©džPQR©GLRCEP?RCB©LLS?J©0CNMPR©NPCQCLRQ©a comprehensive analysis of how we generate realT?JSC©?LB©QSQR?GL?@JC©EPMURF©?R©K?LW©BGDžCPCLR©levels, for the thousands of stakeholders we serve.But you don’t have to take our word for it.Just ask our stakeholders.

Content0CNMPR©.PMdžJC© 3 Support Services 145!MPNMP?RC©.PMdžJC 7 'LDMPK?RGML©2CAFLMJMEW©© 148Board of Directors 10 Call Centre Operation 149Corporate Management 16 !CLRP?J©!?QF©?LB©,CRUMPI©1CRRJCKCLR©$SLARGML©©Chief Managers 21Senior Managers 24 Subsidiaries 150Vision & Values 28 1GW?N?RF?©$GL?LAC©.*!© 1511SQR?GL?@GJGRW©.FGJMQMNFW 29 1!©1CASPGRGCQ©.TR©*RB©©© 152.PMBSAR©.MPRDMJGM 30 1?KN?RF©!CLRPC©*RB© 153Highlights 32 1?KN?RF©'LDMPK?RGML©2CAFLMJMEW©1MJSRGMLQ©*RB©Awards and Accolades for the Year 36+?APMCAMLMKGA©0CTGCU 38 P?LAF©,CRUMPI 154!F?GPK?LQ©0CNMPR 40 ,MQRPM©AAMSLRQ 160+?L?EGLE©\"GPCARMPQ©0CTGCU© 42 Correspondent Banks and Exchange Companies 162 'LTCQRMP©0CJ?RGMLQ 168Integrated Management Discussion and Analysis 50 Stewardship 178© $GL?LAG?J©.CPDMPK?LAC©0CTGCU© 56 © 0GQI©+?L?ECKCLR© 204 57 © !MKNJG?LAC©0CTGCU© 206 Stakeholder Value Creation Blueprint 58 252 Getting to Know Our Stakeholders and Their Expectations 61 Corporate Governance 256 Stakeholder Engagement © M?PB©SBGR©!MKKGRRCC©0CNMPR© 257 Stakeholder Strategies © M?PB©&SK?L©0CQMSPACQ©?LB©0CKSLCP?RGML©!MKKGRRCC©0CNMPR© 259 © M?PB©,MKGL?RGML©!MKKGRRCC©0CNMPR© 262Stakeholders 62 © M?PB©'LRCEP?RCB©0GQI©+?L?ECKCLR©!MKKGRRCC©0CNMPR© 264 Customers 70 © M?PB©!PCBGR©!MKKGRRCC©0CNMPR© 265 Employees 84 © M?PB©1RP?RCEGA©.J?LLGLE©!MKKGRRCC©0CNMPR© 267 0CESJ?RMPQ©© 85 © M?PB©1F?PCFMJBCP©0CJ?RGMLQ©!MKKGRRCC©0CNMPR© 268 Society 99 © M?PB©2PC?QSPW©!MKKGRRCC©0CNMPR© Environment 109 © M?PB©+?PICRGLE©!MKKGRRCC©0CNMPR© ShareholdersBusiness Pillars 111 Financial Information 271 .CPQML?J© ?LIGLE©\"CNMQGRQ© 113 .CPQML?J© ?LIGLE©*M?LQ©?LB©BT?LACQ© 116 Financial Calendar 272 .CPQML?J© ?LIGLE©!?PBQ© 119 © LLS?J©0CNMPR©MD©RFC© M?PB©MD©\"GPCARMPQ©ML©RFC© !F?LLCJ©.PMBSARQ© P?LAF© ?LIGLE© 121 © © Dž?GPQ©MD©RFC©!MKN?LW© 283 !F?LLCJ©.PMBSARQ©2+©,CRUMPI© 123 © \"GPCARMPQ©1R?RCKCLR©ML©'LRCPL?J©!MLRPMJ©-TCP© !F?LLCJ©.PMBSARQ©+M@GJC©?LB©2CJC@?LIGLE© 125 © © $GL?LAG?J©0CNMPRGLE© 285 !F?LLCJ©.PMBSARQ©'LRCPLCR© ?LIGLE© 127 © 'LBCNCLBCLR©QQSP?LAC©0CNMPR©RM©RFC© M?PB©MD© 0CKGRR?LACQ© 129 286 Corporate Banking: Corporate Credit 131 \"GPCARMPQ©MD©1?KN?RF© ?LI©.*!© 287 Corporate Banking: Commercial Credit 132 © +?L?EGLE©\"GPCARMPQ©?LB©%PMSN©!FGCD©$GL?LAG?J©-LjACPQ© !MPNMP?RC© ?LIGLE©\"CTCJMNKCLR© ?LIGLE©©.PMHCAR©$GL?LAC© 134 © © 0CQNMLQG@GJGRW©1R?RCKCLR© 289 Corporate Banking: Development Banking - MSME Development 136 © 1R?RCKCLR©MD©\"GPCARMPQ©0CQNMLQG@GJGRW©DMP©$GL?LAG?J©0CNMPRGLE© 290 'LRCPL?RGML?J©\"GTGQGML©2P?BC©1CPTGACQ© 138 © 'LBCNCLBCLR©SBGRMPQ©0CNMPR©RM©RFC©1F?PCFMJBCPQ©MD© 291 'LRCPL?RGML?J©\"GTGQGML©'LRCPL?RGML?J©-NCP?RGMLQ© 139 © © 1?KN?RF© ?LI©.*!© 292 'LRCPL?RGML?J©\"GTGQGML© ?LI©,MRCQ©-NCP?RGML© ,-© 140 © 1R?RCKCLR©MD©.PMdžR©MP©*MQQ© 293 $MPCGEL©!SPPCLAW© ?LIGLE©3LGR©$! 3© 141 © 1R?RCKCLR©MD©!MKNPCFCLQGTC©'LAMKC© 295 Corporate Finance 142 © 1R?RCKCLR©MD©$GL?LAG?J©.MQGRGML© 297 Treasury 144 0CAMTCPGCQ© Statement of Cash Flow Statement of Changes in Equity © ,MRCQ©RM©RFC©$GL?LAG?J©1R?RCKCLRQ©READ THIS REPORT ONLINE Supplementary Information 422 © 1R?RCKCLR©MD©.PMdžR©MP©*MQQ©GL©31© 423http://www.sampath.lk/images/ © 1R?RCKCLR©MD©!MKNPCFCLQGTC©'LAMKC©GL©31© 424annual_reports/ar2014.pdf © 1R?RCKCLR©MD©$GL?LAG?J©.MQGRGML©GL©31© 425 © 1MSPACQ©©\"GQRPG@SRGML©MD©'LAMKC© 426 427 Value Addition 428 Ten Years at a Glance 430 Quarterly Statistics 436 Capital Adequacy 446 © %0'©'LBCV© 447 © 1SNNJCKCLR?PW©1SQR?GL?@GJGRW©'LBGACQ© 448 © 'LBCNCLBCLR©QQSP?LAC©0CNMPR© © 455 Glossary of Financial and Banking Terms 457 Abbreviations 463 © 'LBCV© 465 © ,MRGAC©MD©LLS?J©%CLCP?J©+CCRGLE© 467 © $MPK©MD©.PMVW© Stakeholder Feedback Form

3Report Profile2FC©0CNMPR©?BBPCQQCQ© 1?KN?RF© ?LI©.*!Q©QAMNC©MD©MNCP?RGMLQ©?LB©CRFGA?J©RFC©KMQR©QGELGdžA?LR© AMKKGRKCLRQ©2FC©@MBW©MD©RFC©0CNMPR©A?PPGCQ©?©aspects of our business documented account of this process.and forms part of acomprehensive suite of To record how well the Bank has performed with regard0CNMPRQ©RM©QR?ICFMJBCPQ© RM©RFCQC©K?RCPG?J©RPGNJC©@MRRMK©JGLC©?QNCARQ©RFC©0CNMPR©for the year 2014. F?Q©@CCL©?JGELCB©RM©RFC©%JM@?J©0CNMPRGLE©'LGRG?RGTC©%0'© G4 guidelines for sustainability reporting and is preparedSCOPE AND BOUNDARY in accordance with the “Comprehensive” application level. 2FC©0CNMPR©?JQM©AMKNJGCQ©UGRF©RFC©Œ$GL?LAG?J©1CPTGACQ© G4 - 14, 15, 28, 30, 32 1CARMP©1SNNJCKCLR©PCOSGPCB©SLBCP©RFC©%0'©ESGBCJGLCQ© UFGAF©GBCLRGdžCQ©?BBGRGML?J©GLBGA?RMPQ©RF?R©?BBPCQQ©?QNCARQ©2FGQ©GQ©RFC©džPQR©GLRCEP?RCB©LLS?J©0CNMPR©DMP©1?KN?RF© unique to the banking business. ?LI©.*!©?LB©AMTCPQ©RFC©?ARGTGRGCQ©MD©RFC© ?LI©?LB©GRQ© ,MR?@JW©RFC©.PCA?SRGML?PW©.PGLAGNJC©QNCAGdžCB©@W©RFC©subsidiaries for the period 1st January 2014 to 31st %0'©ESGBCJGLCQ©NPGLAGNJC©©MD©RFC©0GM©\"CAJ?P?RGML©ML©December 2014. This report demonstrates the Bank’s #LTGPMLKCLR©\"CTCJMNKCLR©F?Q©@CCL©SQCB©BGJGECLRJW©RM©commitment to adopt a competent reporting framework CQR?@JGQF©?L©?AACNR?@JC©PGQIPCU?PB©NPMdžJC©DMP©?JJ©NPMBSAR©that would allow a true representation of the activities and service innovations. This template has been usedDMP©RFC©QRGNSJ?RCB©PCNMPRGLE©AWAJC©AAMPBGLEJW©RFC©0CNMPR© RFPMSEFMSR©RM©CLQSPC©RPSC©CAMLMKGA©@CLCdžR©GQ©BCJGTCPCB©has been prepared in full compliance with all mandatory to its intended recipients in a manner that would convey?LB©PCESJ?RMPW©QRGNSJ?RGMLQ©RF?R©EMTCPL©1PG©*?LI?Q© meaningful change to the community and society as abanking industry. whole.+MPCMTCP©RFC©0CNMPR©?JQM©DSLARGMLQ©?Q©?©FGEFJW© 'LDMPK?RGML©ML©1?KN?RF© ?LI©.*!Q©RPGNJC©@MRRMK©JGLC©transparent disclosure channel that seeks to clarify performance for the year has been summarised in thethe Bank’s actions vis-à-vis various stakeholder %0'©GLBCV©PCDCPCLAC©ESGBC©UFGAF©F?Q©@CCL©GLAJSBCB©GL©EPMSNQ©'L©BMGLE©QM©GR©?GKQ©RM©NPCQCLR©?©@?J?LACB©?LB© N?EC©©RM©©MD©RFGQ©0CNMPR©PC?QML?@JC©RP?LQAPGNR©MD©1?KN?RF© ?LI©.*!Q©CAMLMKGA©environmental and social performance for the reporting 'L©?BBGRGML©RM©%0'©ESGBCJGLCQ©RFC© ?LI©PCK?GLQ©@MSLB©@W©period. the directives laid out under the Customer Charter issued @W©RFC©!CLRP?J© ?LI©MD©1PG©*?LI?©$SPRFCP©GL©AMLDMPKGRW©A special section has also been incorporated to highlight with global best practices for sustainability reporting, thethe Bank’s strategic focus and management approach report also carries voluntary disclosures on the following;in relation to all key stakeholders, moreover, materialaspects deemed relevant to each stakeholder cluster !MBC©MD© CQR©.P?ARGAC©ML©!MPNMP?RC©%MTCPL?LAC©have been evaluated to establish their relevance to GQQSCB©HMGLRJW©@W©RFC©'LQRGRSRC©MD©!F?PRCPCB©the stakeholder alongside the potential impact on AAMSLR?LRQ©MD©1PG©*?LI?©?LB©RFC©1CASPGRGCQ©?LB© #VAF?LEC©!MKKGQQGML©MD©1PG©*?LI? '$!©1SQR?GL?@GJGRW©$P?KCUMPI©GQQSCB©@W© 'LRCPL?RGML?J©$GL?LAC©!MPNMP?RGML OECD guidelines for Multinational Enterprises 3,©%JM@?J©!MKN?AR©BT?LACB©.PGLAGNJCQ !1#©*GQRGLE©0SJCQ©ML©!MPNMP?RC©%MTCPL?LAC© ?LIGLE©AR©\"GPCARGML©,M©©MD©©ML©!MPNMP?RC© %MTCPL?LAC©DMP©*GACLQCB©!MKKCPAG?J© ?LIQ©GL© 1PG©*?LI?©GQQSCB©@W©RFC©!CLRP?J© ?LI©MD©1PG©*?LI?

4 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceReport ProfileMATERIALITY ASSESSMENT RM©1?KN?RF© ?LI©.*!Q©QAMNC©MD©MNCP?RGMLQ©?LB©CRFGA?J© AMKKGRKCLRQ©'L©QRPSARSPGLE©RFC©LJMU©MD©GLDMPK?RGML© G4 - 18, 19, 20, 21 and determining materiality, we observe each aspect in the light of the management ethos pertaining to theR©1?KN?RF© ?LI©.*!©K?RCPG?JGRW©GQ©?QQCQQCB©@W©RFC©BS?J© particular stakeholder group. Accordingly, a number ofimpact of each area. Thereby, evaluating the degree to quantitative and qualitative tools are used to obtain aUFGAF©?L©GQQSC©GQ©QGELGdžA?LR©LMR©MLJW©RM©QMAGCRW©?LB©MSP© deeper understanding of the large volume of information.stakeholders but also the degree to which it is relevant Materiality is then measured using the following aspects.No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LAC©RM©Economic Sampath Bank Sampath Bank Stakeholders 1 #AMLMKGA©.CPDMPK?LAC Sampath Bank 2 +?PICR©.PCQCLAC Sampath Bank / High High 3 'LBGPCAR©#AMLMKGA©'KN?ARQ Community High Medium Supplier High 4 .PMASPCKCLR©.P?ARGACQ HighEnvironmental Sampath Bank High Sampath Bank Medium 5 Materials Sampath Bank *MU 6 Energy Sampath Bank High High 7 Water Sampath Bank High High 8 Biodiversity Community High High 9 Emissions Sampath Bank High High 10 #ljSCLR©?LB©5?QRC Sampath Bank Medium High 11 .PMBSARQ©?LB©1CPTGACQ Community High High 12 Compliance - Environmental Sampath Bank High High 13 Transport Suppliers Medium High 14 Overall Sampath Bank High Medium 15 Supplier Environment Assessment Medium High 16 Environment Grievance Mechanisms Sampath Bank Medium MediumSocial - Labour Practices and Decent Work Employee Medium 17 Employment Employee High 18 *?@MSP©+?L?ECKCLR©0CJ?RGMLQ Employee High Medium 19 Occupational Health and Safety Sampath Bank High High 20 Training and Education Sampath Bank High High 21 Diversity and Equal Opportunity Supplier High High 22 #OS?J©0CKSLCP?RGML©DMP©5MKCL©©+CL Employee High 23 1SNNJGCP©QQCQQKCLR©DMP©*?@MSP©.P?ARGACQ Medium Medium 24 *?@MSP©.P?ARGAC©%PGCT?LAC©+CAF?LGQKQ Sampath Bank High MediumHuman Rights Sampath Bank Medium 25 'LTCQRKCLR©©&SK?L©0GEFRQ Employee High Medium 26 ,ML©\"GQAPGKGL?RGML High 27 Freedom of Association & Collective Sampath Bank High Medium Medium Bargaining High Medium 28 !FGJB©*?@MSP High

5No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LAC©RM© 29 $MPACB©MP©!MKNSJQMPW©*?@MSP Sampath Bank Sampath Bank Stakeholders 30 1CASPGRW©.P?ARGACQ©©&SK?L©0GEFRQ Sampath Bank 31 'LBGECLMSQ©0GEFRQ Sampath Bank High High 32 QQCQQKCLR©©©&SK?L©0GEFRQ Sampath Bank High High 33 1SNNJGCP©&SK?L©0GEFRQ©QQCQQKCLR Sampath Bank *MU *MU 34 &SK?L©0GEFRQ©%PGCT?LAC©+CAF?LGQKQ Sampath Bank *MU MediumSociety High Medium 35 *MA?J©!MKKSLGRGCQ Community High High 36 Anti-Corruption Sampath Bank 37 .S@JGA©.MJGAW Sampath Bank High High 38 Anti-Competitive Behaviour Sampath Bank High High 39 Compliance - Society Sampath Bank High High 40 1SNNJGCP©QQCQQKCLR©DMP©'KN?AR©ML©1MAGCRW Supplier Medium Medium 41 Grievance Mechanism for impact on Sampath Bank High High Medium *MU Society Customer *MU *MUProduct Responsibility Sampath Bank Sampath Bank High High 42 Customer Health and Safety Sampath Bank Medium Medium 43 .PMBSAR©?LB©1CPTGAC©*?@CJJGLE Supplier Medium 44 Marketing Communications *MU 45 !SQRMKCP©.PGT?AW High High 46 !MKNJG?LAC©©.PMBSAR©0CQNMLQG@GJGRW High *MU 1, 3, 6, 7, 8, 9, 11, 12,Sustainability Significance to H 46 2, 4, 17, 21, 22, 14, 18, 19, 20, 28, 29, Sampath Bank 24, 25, 26, 27, 33 30, 34, 35, 36, 37, 39, 42, 45 M 40, 44 13, 15, 16, 23, 10 38, 43 * 31, 41 32 5 H High M Medium * *MU *M H Sustainability Significance to Stakeholders

6 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceReport Profile'L©RFC©NPMACQQ©MD©AMTCPGLE©?JJ©RFC©?QNCARQ©PCJ?RCB©RM©RFC© period, information has been sought out from theBank’s triple bottom line performance for the reporting following sources: Information Source%MTCPL?LAC©?LB©0GQI©'LDMPK?RGML Compliance Department!SQRMKCP©0CJ?RCB©QNCARQ©.PMBSARQ©?LB© 0GQI©+?L?ECKCLR©\"CN?PRKCLRServices Marketing Department!MPNMP?RC©1MAG?J©0CQNMLQG@GJGRW Corporate Credit Department Commercial Credit Department&SK?L©0CQMSPACQ©\"?R?©?LB©'LDMPK?RGML Corporate Finance Department#LTGPMLKCLR©0CJ?RCB©QNCARQ Development Banking Unit Foreign Currency Banking Unit$GL?LAG?J©0CJ?RCB©\"?R?©?LB©'LDMPK?RGML Trade Services Department-RFCP©1SQR?GL?@GJGRW©0CJ?RCB©'LDMPK?RGML Electronic Banking Unit Data Warehouse Unit Card Centre Call Centre All Branches Marketing Department Development Banking Department 1?KN?RF© ?LI©,?RSPC©.PMRCARGML©!JS@ All Branches / Departments &SK?L©0CQMSPACQ©\"CN?PRKCLR 1?KN?RF© ?LI©,?RSPC©.PMRCARGML©!JS@ Development Banking Unit Operations Department Marketing Department Finance Department *MEGQRGAQ©\"CN?PRKCLR Operations DepartmentASSURANCE interest in the scope of activities conducted by Sampath ?LI©.*!©MRFCP©RF?L©?Q©CVRCPL?J©?SBGRMPQ©NCPR?GLGLE©To determine the credibility of our reporting frameworkGL©JGLC©UGRF©RFC©%0'©ESGBCJGLCQ©UC©F?TC©QMSEFR©?L© RM©RFC©džL?LAG?J©?QNCARQ©MD©RFC© ?LI©?LB©RM©NPMTGBC©RFC©GLBCNCLBCLR©TCPGdžA?RGML©MD©RFGQ©PCNMPR©DPMK©+CQQPQ©#PLQR© independent assurance report for our sustainability?LB©7MSLE©!F?PRCPCB©AAMSLR?LRQ©'R©GQ©LMRCUMPRFW© KCAF?LGQKQ©.JC?QC©PCDCP©N?EC©©MD©RFGQ©PCNMPR©DMP©RFC©that Messrs Ernst and Young have no involvement or comprehensive assurance report issued by Messrs Ernst and Young.G4-29, 33A Snapshot of Our Progress Towards Sustainability Reporting Year 0CNMPR©.PMdžJC GRI Application Level Declaration Status External Assurance2011 1R?LB?JMLC©0CNMPR %0'©©*CTCJ© Self-declared Provided2012 'LAMPNMP?RCB©GL©LLS?J©0CNMPR %0'©©*CTCJ© Self-declared2013 1R?LB?JMLC©0CNMPR %0'©%©!MKNPCFCLQGTC - Yes2014 'LRCEP?RCB©0CNMPR %0'©%©!MKNPCFCLQGTC - Yes Yes Yes

7Corporate Profile1?KN?RF© ?LI©.*!©GQ©?©NS@JGA©JGKGRCB©JG?@GJGRW©AMKN?LW©GLAMPNMP?RCB©GL©1PG©*?LI?©ML©RF©+?PAF©©SLBCP©RFC©!MKN?LGCQ©AR©,M©©MD©©?LB©JGQRCB©ML©RFC©K?GL©@M?PB©MD©RFC©!MJMK@M©1RMAI©#VAF?LEC©'R©U?Q©MPGEGL?JJW©GLAMPNMP?RCB©?Q©RFC©'LTCQRKCLR©?LB©!PCBGR© ?LI©*GKGRCB©GL©©UGRF©+P©,©3©(?W?U?PBCL?©?Q©RFC©!F?GPK?L©2FC© ?LI©U?Q©PCEGQRCPCB©SLBCP©RFC© ?LIGLE©AR©,M©©MD©©?Q©?©JGACLQCB©AMKKCPAG?J©@?LI©1?KN?RF© ?LI©.*!©U?Q©PCPCEGQRCPCB©ML©©NPGJ©©?Q©K?LB?RCB©@W©RFC©!MKN?LGCQ©AR©,M©©MD©©5GRF©?©ASPPCLR©QF?PCFMJBCP©@?QC©MD©©QF?PCFMJBCPQ©RFC©K?PICR©A?NGR?JGQ?RGML©MD©1?KN?RF© ?LI©.*!©U?Q©0Q©©+L©?Q©?R©QR©December 2014.0?RCB©?Q©?©RMNRGCP©@?LIGLE©?LB©džL?LAC©GLQRGRSRGML©GL©1PG©*?LI?©1?KN?RF© ?LI©.*!©GQ©PCLMULCB©DMP©GRQ©NGMLCCPGLE©PMJC©GL©1PG©*?LI?Q©@?LIGLE©GLBSQRPW©'L©©1?KN?RF© ?LI©J?SLAFCB©RFC©džPQR©KSJRGNMGLR©LCRUMPI©MD©?SRMK?RCB©RCJJCP©K?AFGLCQ©GL©1PG©*?LI?©2FC© ?LI©?JQM©GLRPMBSACB©RFC©džPQR©BC@GR©A?PB©GL©South Asia in 1997.1?KN?RF© ?LI©F?Q©@CCL©QCJCARCB©?Q©RFC©
CQR© ?LI©GL©1PG©*?LI?©©
©@W©the prestigious, global Business Magazine \"The Euromoney\", for the secondconsecutive year. The Bank has also been adjudged both the Best Commercial?LB©RFC© CQR©0CR?GJ© ?LI©GL©1PG©*?LI?©@W©RFC©5MPJB©$GL?LAC© ?LIGLE©+?E?XGLC©1?KN?RF© ?LIQ©©LLS?J©0CNMPR©UML©RFC©%MJB©U?PB©GL©RFC© ?LIGLE©'LQRGRSRGMLQ©1CARMP©?LB©RFC© PMLXC©U?PB©GL©-TCP?JJ©#VACJJCLAC©GL©LLS?J©$GL?LAG?J©0CNMPRGLE©?R©RFC©RF©LLS?J©0CNMPR©U?PBQ©!CPCKMLW©MPE?LGQCB©@W©RFC©'LQRGRSRC©MD©!F?PRCPCB©AAMSLR?LRQ©MD©1PG©*?LI?©©©1?KN?RF© ?LI©GQ©MLC©MD©RFC©KMQR©RCAFLMJMEGA?JJW©?BT?LACB©@?LIQ©GL©1PG©*?LI?©QGLAC©GRQ©J?LBK?PI©?AFGCTCKCLR©MD©@CAMKGLE©RFC©džPQR©@?LI©GL©1PG©*?LI?©RM©operate with a fully computerised database and related technologies in 1987.1?KN?RF© ?LI©F?Q©@CCL©RFC©RFGPB©J?PECQR©NPGT?RC©QCARMP©@?LI©GL©1PG©*?LI?©GL©terms of total assets, since 2009. The Bank now operates 220 branches and©2+Q©GLAJSBGLE©©MDžQGRC©2+Q©1?KN?RF© ?LI©FMJBQ©?L©MTCP?JJ©APCBGR©P?RGLE©MD©
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©DPMK©$GRAF©0?RGLE©*?LI?©*RB G4 - 9

8 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate ProfileBOARD OF DIRECTORS OF SAMPATHBANK PLC\"CR?GJQ©©NPMdžJCQ©MD© M?PB©MD©\"GPCARMPQ©?PC©EGTCL©ML©pages 10 to 15.SUBSIDIARY COMPANIES OF THE BANKDetails of Subsidiaries as of 31st December 2014 aretabulated below. Subsidiary Principal Activities Ownership as at 31st 0CLRGLE©MD©!MKKCPAG?J©.PMNCPRW December 2014Sampath Centre Ltd 97.14% ChairmanNames of Board of Directors Director Ownership as at 31st+P©'©5©1CL?L?W?IC Director December 2014Mr S G Wijesinha Director 100.00%+P©1©.©)?LL?LE?P?Mr Wije Dambawinne Ownership as at 31st December 2014 Subsidiary Principal Activities 100.00%S C Securities (Pvt) Ltd Share BrokingNames of Board of Directors ChairmanMr D J Gunarathne CEO / Director+P©,©&©)©$CPL?LBM DirectorDr S Kelegama DirectorMr Deshal de Mel Director+P©P?TGLB?©.CPCP? Director+P©+©,©0©$CPL?LBM Subsidiary Principal ActivitiesSiyapatha Finance PLC *C?QGLE©?LB©$?ARMPGLENames of Board of Directors Chairman+P©!F?LL?©©.?J?LQSPGW?© Deputy ChairmanMr M A Abeynaike DirectorMr S G Wijesinha Director+P©.©+©©©1GPGK?LC DirectorDr H S D Soysa Director+P©5©+©.©*©BC©JUGQ Director+P©P?TGLB?©.CPCP? Director+P©0?LHGRF©©1?K?P?L?W?IC

9 Subsidiary Principal Activities Ownership as at 31st December 2014Sampath Information \"CTCJMNGLE©1MNJU?PC©1MJSRGMLQ©?LB©+?GLRCL?LAC©MD©Technology Solutions Ltd Hardware 100.00%Names of Board of Directors Chairman+P©©*©(©)©&CRRG?P?RAFG DirectorMr D J Gunaratne Director+P©©+©4GK?J©'LBP?QMK? Director+P©©)©+©1©©.©&CP?RFMEMBERSHIP OF ASSOCIATIONS1?KN?RF© ?LI©.*!©PCNPCQCLRQ©QCTCP?J©L?RGML?J©?LB©GLRCPL?RGML?J©@MBGCQ©@W©@CGLE©?©KCK@CP©MD©RFMQC©?QQMAG?RGMLQ Name of the Association Membership Status1PG©*?LI?© SQGLCQQ©© GM©\"GTCPQGRW©.J?RDMPK©MD©!CWJML©!F?K@CP©MD©!MKKCPAC .?RPML©+CK@CP1MAGCRW©DMP©5MPJBUGBC©'LRCP@?LI©$GL?LAG?J©2CJCAMKKSLGA?RGML©15'$2 Member*?LI?©$GL?LAG?J©1CPTGACQ© SPC?S©*$1  Member*?LI?©15'$2©3QCP©%PMSN©*13% Member & Treasurer*?LI?©!JC?P©.TR©*RB Member*C?QGLE©QQMAG?RGML©MD©1PG©*?LI? Member2FC©QQMAG?RGML©MD© ?LIGLE©1CARMP©0GQI©.PMDCQQGML?JQ©©1PG©*?LI? Member'LRCPL?RGML?J©!F?K@CP©MD©!MKKCPAC©Š©'!!©1PG©*?LI? Member'R?JG?L© SQGLCQQ©!MSLAGJ Member!10©*?LI?©%S?P?LRCC©*RB Member2FC©#SPMNC?L©!F?K@CP©MD©!MKKCPAC©MD©1PG©*?LI? Member1PG©*?LI?© ?LIQ©QQMAG?RGML©%S?P?LRCC©*RB MemberThe Ceylon Chamber of Commerce .?RPML©+CK@CP2FC©$GL?LAG?J©-K@SBQK?L©1PG©*?LI?©%S?P?LRCC©*RB MemberKCPGA?L©!F?K@CP©MD©!MKKCPAC©GL©1PG©*?LI? Member1PG©*?LI?©$MPCV©QQMAG?RGML©©1*$ MemberQQMAG?RGML©MD©.PGK?PW©\"C?JCPQ©.\" MemberQQMAG?RGML©MD©!MKNJG?LAC©-LjACPQ©MD© ?LIQ©1PG©*?LI? MemberClearing Association of Bankers Member.?WKCLR©!?PB©QQMAG?RGML©MD©1PG©*?LI? MemberG4-16, 17

10 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBoard of Directors1C?RCB©*CNJ©RM©0GEFR 1R?LBGLE©*CNJ©RM©0GEFRMr Sanjiva Senanayake (Senior Independent Director) Mr Ranil PathiranaMr Dhammika Perera (Chairman) Mr Deshal De MelMr Channa Palansuriya (Deputy Chairman) Mr Ranjith Samaranayake©%PMSN©!FGCD©$GL?LAG?J©-LjACPMr Deepal Sooriyaarachchi Mrs Dhara Wijayatilake Mrs Saumya Amarasekera

11Mr S Sudarshan (Group Company Secretary)Mr Aravinda Perera (Managing Director)Prof Malik RanasingheMiss Annika Senanayake

12 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBoard of DirectorsMR DHAMMIKA PERERA !MKKGRRCC© M?PB©1RP?RCEGA©.J?LLGLE©!MKKGRRCC©?LB© Board Treasury CommitteeSkills & Experience: +P©\"F?KKGI?©.CPCP?©GQ©?©quintessential business leader, with interests in a variety Current Appointments: Managing Director Sampathof key industries including Hydropower Generation, ?LI©.*!©\"GPCARMP©1GW?N?RF?©$GL?LAC©.*!©\"GPCARMP©1!©Manufacturing, Hospitality, Entertainment, Banking andFinance. He enriches the Board with over 25 years of 1CASPGRGCQ©.PGT?RC©*RB©\"GPCARMP©'LQRGRSRC©MD© ?LICPQ©experience in building formidable businesses through MD©1PG©*?LI?©\"GPCARMP©*?LI?©$GL?LAG?J©1CPTGACQ© SPC?S©unmatched strategic foresight. *GKGRCB©\"GPCARMP©*?LI? ?LEJ?©$GL?LAC©*GKGRCB©\"GPCARMP© Colombo Stock Exchange.Appointed to the Board: 1st August 2007. Appointed as,ML©#VCASRGTC©!F?GPK?L©ML©QR©(?LS?PW©© Former Appointments: Deputy Managing Director, Chief -NCP?RGLE©-LjACP©\"CNSRW©%CLCP?J©+?L?ECP©?LB©MRFCP©Membership of Board Sub Committees: Chairman of roles spanning a career of 27 years at Sampath Bank M?PB©1RP?RCEGA©.J?LLGLE©!MKKGRRCC©+CK@CP©MD© M?PB© .*!©1CLGMP©.PMHCAR©-LjACP©\"$!!©?LB©\"CN?PRKCLR?J© Manager and Service Engineer at Ceylon Tobacco,MKGL?RGML©!MKKGRRCC© !MKN?LW©#LEGLCCP©?R©,?RGML?J©+GJI© M?PB©.PCQGBCLR©MD© RFC©QQMAG?RGML©MD©.PMDCQQGML?J© ?LICPQ©MD©1PG©*?LI?Current appointments:©!F?GPK?L©1?KN?RF© ?LI©.*!©4?JJG@CJ©-LC©.*!©4?JJG@CJ©$GL?LAC©.*!©4?JJG@CJ©.MUCP© MR CHANNA PALANSURIYA#P?RFL?©.*!©0MW?J©!CP?KGAQ©*?LI?©.*!©2FC©$MPRPCQQ©0CQMPRQ©.*!©\"CJKCEC©*GKGRCB©?LB©1SL©2?L© C?AF© Skills & Experience: Over 30 years of vast experience in0CQMPRQ©*RB©!M!F?GPK?L©MD©&?WJCWQ©.*!©#VCASRGTC© the Apparel sector by heading Orit Group of Companies\"CNSRW©!F?GPK?L©MD©* ©$GL?LAC©.*!©\"CNSRW©!F?GPK?L© and continuous leadership given to other companies inMD©&MP?L?©.J?LR?RGMLQ©.*!©?LB©*?LI?©2GJCQ©.*!©&C© RFC©NN?PCJ©'LBSQRPW©&C©F?Q©E?GLCB©UGBC©CVNCPGCLAC©GL©?JQM©QCPTCQ©ML©RFC© M?PBQ©MD©K?W?©*CGQSPC©.*!©*?LI?© Government Administration by being a Board Member!CP?KGA©.*!©&?WA?P@©.*!©&?WJCWQ©+%2©)LGRRGLE©+GJJQ© MD©RFC© -'©BSPGLE©©RM©(?LS?PW©©&C©F?Q©UML©.*!©2FC©)GLEQ@SPW©.*!©?LB©\"GNNCB©.PMBSARQ©.*!© ?U?PBQ©QSAF©?Q©QG?©.?AGdžA©-SRQR?LBGLE©#LRPCNPCLCSPQFGN© U?PB©GL©©1PG©*?LI?L©#LRPCNPCLCSP©MD©RFC©7C?P©Former appointments: Chairman and Director General, GL©©?LB©RFC©1GJTCP©U?PB©MD©RFC©,?RGML?J©!F?K@CP© M?PB©MD©'LTCQRKCLR©1PG©*?LI?©1CAPCR?PW©+GLGQRPW© MD©#VNMPRCPQ©MD©1PG©*?LI?©DMP©RFC©%?PKCLR©#VRP?©*?PEC© category in 2012.MD©2P?LQNMPR©1PG©*?LI?©\"GPCARMP©1RP?RCEGA©#LRCPNPGQC©+?L?ECKCLR©ECLAW©MD©1PG©*?LI?©!F?GPK?L©/SCCLQ@SPW© Appointed to the Board: QR©(?LS?PW©©?Q©?©,ML©*CGQSPC©*RB©&C©F?Q©?JQM©QCPTCB©RFC© M?PB©MD©-PGR© Executive Director and appointed as Deputy Chairman onNN?PCJQ©*?LI?©.TR©*GKGRCB© 26th January 2012.MR ARAVINDA PERERA Membership of Board Sub Committees: Chairman of M?PB©1F?PCFMJBCP©0CJ?RGMLQ©!MKKGRRCC©+CK@CP©MD©Skills & Experience: Counts over 30 years in the Banking M?PB©'LRCEP?RCB©0GQI©+?L?ECKCLR©!MKKGRRCC© M?PB©QCARMP©$CJJMU©+CK@CP©MD©'LQRGRSRC©MD© ?LICPQ©MD©1PG©*?LI?©$CJJMU©+CK@CP©MD©RFC©!F?PRCPCB©'LQRGRSRC©MD© &0©?LB©0CKSLCP?RGML©!MKKGRRCC© M?PB©1RP?RCEGA©Management Accountants, UK; Chartered Engineer and .J?LLGLE©!MKKGRRCC© M?PB©,MKGL?RGML©!MKKGRRCC©?LB©+CK@CP©MD©RFC©'LQRGRSRC©MD©#LEGLCCPQ©1PG©*?LI?©+ © Board Credit Committee.from the University of Sri Jayewardenepura; Bachelorof Science degree in Engineering from the University of Current Appointments: Deputy Chairman SampathMoratuwa. ?LI©.*!©!F?GPK?L©1GW?N?RF?©$GL?LAC©.*!©!F?GPK?LAppointed to the Board:©RF©,MTCK@CP©©?Q©?L© Managing Director of Orit Group comprising of OritExecutive Director and appointed as Managing Director NN?PCJQ©*?LI?©.TR©*RB©-PGR©2P?BGLE©*?LI?©.TR©UGRF©CDžCAR©DPMK©QR©(?LS?PW© *RB©!F?GPK?L©MD©1RWJC)P?NJ©1NMPRQUC?P©.TR©*RB© !?L?B?©-PGR©'LQNGPCB©!PC?RGMLQ©.PGT?RC©*RB©#VCASRGTC©Membership of Board Sub Committees: Member Committee Member of Joint Apparel Association ForumMD© M?PB©!PCBGR©!MKKGRRCC© M?PB©'LRCEP?RCB©0GQI© ($©#VCASRGTC©!MKKGRRCC©+CK@CP©MD©NN?PCJ©+?L?ECKCLR©!MKKGRRCC© M?PB©&0©©0CKSLCP?RGML© Exporters Association and Executive Committee Member MD©1PG©*?LI?©NN?PCJ©1MSPAGLE©QQMAG?RGML©1*1

13Former Appointments: M?PB©+CK@CP©MD©1PG©*?LI?© Marketing Committee. Member of Board Audit'LQRGRSRC©MD©2CVRGJC©©NN?PCJ©!F?GPK?L©MD©NN?PCJ© CommitteeExporters’ Association 200gfp during 2006-2008,!F?GPK?L©MD©%!©*?LI?©!JMRFGLE©.TR©*RB©RGJJ©©?LB© Current Appointments:©,ML©#VCASRGTC©\"GPCARMP©1?KN?RF© ?LI©.*!©'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP©?R©'© M?PB©+CK@CP©MD© M?PB©MD©'LTCQRKCLR©MD©1PG©*?LI?©DPMK©2005 to January 2015. 'LQSP?LAC©*?LI?©.*!©.?L©QG?L©.MUCP©.*!©&CK?Q© +?LSD?ARSPGLE©.PGT?RC©*RB©,ML©#VCASRGTC©'LBCNCLBCLR©MR SANJIVA SENANAYAKE !MKKGQQGMLCP©MD©1PG©*?LI?©'LTCLRMPQ©!MKKGQQGML© Member of Council, University of Moratuwa, ConsultingSkills & Experience: Extensive local and overseas .?PRLCP©0 *©%PMSN©31CVNCPGCLAC©GL©RFC©džL?LAG?J©QCPTGACQ©QCARMP©F?TGLE©QCPTCB©GL©RFC©QCLGMP©K?L?ECKCLR©A?N?AGRGCQ©?R©NPCKGCP©džL?LAG?J© Former Appointments:©+?L?EGLE©\"GPCARMP©TGT?©,\" ©institutions and as an independent consultant. 'LQSP?LAC©.*!©.PCQGBCLR©MD©1PG©*?LI?©'LQRGRSRC©MD© Marketing.Appointed to the Board: 1st January 2012 as'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP©?LB©?NNMGLRCB©?Q© PROF MALIK RANASINGHE1CLGMP©\"GPCARMP©UGRF©CDžCAR©DPMK©RF©(?LS?PW© Skills & Experience: Extensive governance experienceMembership of Board Sub Committees: Chairman of ?Q©?©4GAC!F?LACJJMP©?LB©,ML#VCASRGTC©\"GPCARMP©ML©Board Treasury Committee, Member of the Board Audit AMPNMP?RC©@M?PBQ©©$CJJMU©+CK@CP©?LB©'LRCPL?RGML?J©!MKKGRRCC© M?PB©!PCBGR©!MKKGRRCC© M?PB©'LRCEP?RCB© .PMDCQQGML?J©#LEGLCCP©MD©RFC©'LQRGRSRGML©MD©#LEGLCCPQ©0GQI©+?L?ECKCLR©!MKKGRRCC©?LB© M?PB©1RP?RCEGA© 1PG©*?LI?©$CJJMU©MD©RFC©,?RGML?J©A?BCKW©MD©1AGCLACQ©.J?LLGLE©!MKKGRRCC© 1PG©*?LI?©.F\"©DPMK©3LGTCPQGRW©MD© PGRGQF©!MJSK@G?© Vancouver, Canada in Civil Engineering as a CanadianCurrent Appointments: ,ML©#VCASRGTC©\"GPCARMP©MD© Commonwealth Scholar; published extensively on1?KN?RF© ?LI©.*!©QG?L©&MRCJ©©.PMNCPRGCQ©.*!©&CK?Q© #LEGLCCPGLE©?LB©#LTGPMLKCLR?J©#AMLMKGAQ©UGRF©.PMHCAR©.F?PK?ACSRGA?JQ©.TR©*RB +?L?ECKCLR©0CAGNGCLR©MD©?AAMJ?BCQ©?LB©?U?PBQ© GLAJSBGLE©RFC©%CLCP?J©0CQC?PAF©!MKKGRRCC©U?PB©DMP©Former Appointments:©\"GPCARMP©MD©&CK?Q©.MUCP©.*!© -SRQR?LBGLE©!MLRPG@SRGML©RM©1PG©*?LI?L©1AGCLAC©DPMK©1CLGMP©'LTCQRKCLR©-LjACP©%JM@?J©$GL?LAG?J©+?PICRQ© RFC©1PG©*?LI?©QQMAG?RGML©DMP©BT?LACKCLR©MD©1AGCLAC©'LRCPL?RGML?J©$GL?LAC©!MPNMP?RGML©'$!©Š©RFC©NPGT?RC© RFC©!MKKGRRCC©MD©4GAC!F?LACJJMPQ©?LB©\"GPCARMPQ©!4!\"©QCARMP©GLTCQRKCLR©?PK©MD©5MPJB© ?LI©%PMSN©0CQGBCLR© Excellence Award for 2012 for the Most Outstanding0CNPCQCLR?RGTC©DMP©1PG©*?LI?©©+?JBGTCQ©'$!©QQGQR?LR© 1CLGMP©0CQC?PAFCP©GL©2CAFLMJMEW©?LB©PCJ?RCB©1AGCLACQ©%CLCP?J©+?L?ECP©2PC?QSPW©©'LTCQRKCLR© ?LIGLE©?R© the Award for Outstanding Contribution to Education,?RGML?J©\"CTCJMNKCLR© ?LI©MD©1PG©*?LI?©!MLQSJR?LR© 2012 at World Education Congress and the Education2PC?QSPW©© SQGLCQQ©\"CTCJMNKCLR©?R©!MKKCPAG?J© *C?BCPQFGN©U?PB©©?R©RFC©RF©QG?Q© CQR© 1AFMMJ© Awards, Singapore. ?LI©MD©!CWJML©1CLGMP©0GQI©+?L?ECP©!GRG@?LI©1WBLCW©SQRP?JG?©&C?B©MD©2PC?QSPW©?LB©'LTCQRKCLR© ?LIGLE© Appointed to the Board: 30th August 2011 as anBrunei, various positions including Treasurer and Head of 'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP.S@JGA©1CARMP© SQGLCQQ©!GRG@?LI©!MJMK@M©!MMPBGL?RGLE©#LEGLCCP©%PC?RCP©!MJMK@M©#AMLMKGA©!MKKGQQGML©LMU© Membership of Board Sub Committees: Chairman of Board Credit Committee, Member of Board Audit -'©\"CTCJMNKCLR©.J?LLGLE©QQGQR?LR©3,\".©!MJMK@M !MKKGRRCC© M?PB©1RP?RCEGA©.J?LLGLE©!MKKGRRCC©MR DEEPAL SOORIYAARACHCHI M?PB©2PC?QSPW©!MKKGRRCC©?LB© M?PB©'LRCEP?RCB©0GQI© Management CommitteeSkills & Experience: Counts over 30 years experienceGL©1?JCQ©BTCPRGQGLE©+?PICRGLE©&SK?L©0CQMSPACQ© Current Appointments: ,ML©#VCASRGTC©\"GPCARMP©1?KN?RF©Development & Strategy with extensive experience ?LI©.*!©1CLGMP©.PMDCQQMP©GL©!GTGJ©#LEGLCCPGLE©GL©RFC©džCJB©MD©GLQSP?LAC©$CJJMU©KCK@CP©MD©RFC©!F?PRCPCB©'LQRGRSRC©MD©+?PICRGLE©3)©?LB©?©!F?PRCPCB© 3LGTCPQGRW©MD©+MP?RSU?©?LB©'LBCNCLBCLR©,ML©#VCASRGTC©Marketer. Holds an MBA from the University of Sri \"GPCARMP©2CVRSPCB©(CPQCW©*?LI?©.*!©AACQQ©#LEGLCCPGLE©(?W?U?PBCL?NSP?©.GMLCCP©GL©BGQQCKGL?RGLE©K?L?ECKCLR© .*!©?LB©3LGRCB©+MRMPQ©*?LI?©.*!©ILMUJCBEC©GL©1GLF?J?©*?LES?EC©©JC?BGLE©K?L?ECKCLR©development consultant and Author. Former Appointments: Vice-Chancellor of the University of Moratuwa, Chairman of the Committee of Vice ChancellorsAppointed to the Board: 5th August 2010 as an ?LB©\"GPCARMPQ©MD©1PG©*?LI?©!MSLAGJ©+CK@CP©MD©RFC©'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP Association of Commonwealth Universities, Fellow of the ,?RGML?J©3LGTCPQGRW©MD©1GLE?NMPC©,ML©#VCASRGTC©\"GPCARMP©Membership of Board Sub Committees: Chairman MD©RFC©!MJMK@M©1RMAI©#VAF?LEC©?LB©*?LI?©'-!©.*!©MD© M?PB©&0©©0CKSLCP?RGML©!MKKGRRCC©?LB© M?PB© 'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP©&CK?Q©.MUCP©.*!

14 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBoard of DirectorsMRS DHARA WIJAYATILAKE MR DESHAL DE MELSkills & Experience:©RRMPLCW?R*?U©** ©!CW©1CLGMP© Skills & Experience: Master of Science degree in.S@JGA©-LjACP©AMSLRGLE©MTCP©©WC?PQ©CVNCPGCLAC©GL©RFC© 'LRCPL?RGML?J©.MJGRGA?J©#AMLMKGAQ©DPMK©RFC©*MLBML©1AFMMJ©.S@JGA©1CPTGAC©2FC©džPQR©UMK?L©RM©FMJB©RFC©NMQR©MD©?© of Economics, Bachelor of Arts degree with HonoursSecretary to a Cabinet Ministry. GL©.FGJMQMNFW©.MJGRGA?J©1AGCLAC©?LB©#AMLMKGAQ©DPMK© University of Oxford.Appointed to the Board: 30th August 2011 as'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP Appointed to the Board: QR©(?LS?PW©©?Q©?©,ML© Executive DirectorMembership of Board Sub Committees: Chairperson of M?PB©'LRCEP?RCB©0GQI©+?L?ECKCLR©!MKKGRRCC©+CK@CP© Membership of Board Sub Committees: Member of M?PB©!PCBGR©!MKKGRRCC© M?PB©&0©©0CKSLCP?RGML©MD© M?PB©SBGR©!MKKGRRCC©+CK@CP©MD© M?PB©,MKGL?RGML©Committee !MKKGRRCC© M?PB©1RP?RCEGA©.J?LLGLE©!MKKGRRCC© M?PB© 1F?PCFMJBCP©0CJ?RGMLQ©!MKKGRRCC© M?PB©2PC?QSPW©Current Appointments:©,ML©#VCASRGTC©\"GPCARMP©1?KN?RF© Committee and Board Marketing Committee, ?LI©.*!©+CK@CP©MD©RFC©1PG©*?LI?©*?U©!MKKGQQGML Current Appointments:©,ML©#VCASRGTC©\"GPCARMP©1?KN?RF©Former Appointments: Secretary to the Ministry of ?LI©.*!©1CLGMP©#AMLMKGQR©&?WJCWQ©.*!©+CK@CP© M?PB©(SQRGAC©1CAPCR?PW©RM©RFC©+GLGQRPW©MD©.J?L©'KNJCKCLR?RGML©1CAPCR?PW©RM©RFC©+GLGQRPW©MD©2CAFLMJMEW©©0CQC?PAF MD©\"GPCARMPQ©1!©1CASPGRGCQ©.TR©*RB©+CK@CP© M?PB©MD© \"GPCARMPQ©!CLRPC©DMP©.MTCPRW©L?JWQGQ©+CK@CP©#AMLMKGA©MISS ANNIKA SENANAYAKE $GQA?J©?LB©.MJGAW©.J?LLGLE©!MKKGRRCC©?LB©#VNMPR© Committee of the Ceylon Chamber of CommerceSkills & Experience: Bachelor of Arts in Management1RSBGCQ©DPMK©RFC©3LGTCPQGRW©MD©,MRRGLEF?K©*C?BQ©?L© Former Appointments: #AMLMKGQR©'LQRGRSRC©MD©.MJGAW©#LEJGQF©KCBGSK©RCPPCQRPG?J©2CJCTGQGML©!F?LLCJ©?LjJG?RCB© 1RSBGCQ©1PG©*?LI?©RM©!,,©&C?BQ©!MPNMP?RC©.J?LLGLE©DMP©'51©&MJBGLEQ©GL©BGTCPQGdžCB©@SQGLCQQ©GLRCPCQRQ©GL©RCJCAMKKSLGA?RGMLQ© MR RANIL PATHIRANAmedia & broadcast, automobiles, aviation, warehousing,food & beverage processing and packaging. Skills & Experience:©#VRCLQGTC©CVNCPGCLAC©GL©džL?LAC©?LB© K?L?ECKCLR©GL©džL?LAG?J©?NN?PCJK?LSD?ARSPGLE©?LB©Appointed to the Board: 1st January 2012 as an CLCPEW©QCARMPQ©$CJJMU©KCK@CP©MD©RFC©!F?PRCPCB©'LQRGRSRC©'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMP MD©+?L?ECKCLR©AAMSLR?LRQ©3)$!+©?LB©FMJBQ©?© Bachelor of Commerce degree from the University of SriMembership of Board Sub Committees: Chairperson of Jayawardenapura. M?PB©,MKGL?RGML©!MKKGRRCC©+CK@CP©MD© M?PB©!PCBGR© Appointed to the Board: QR©(?LS?PW©©?Q©?©,ML©Committee, Member of Board Marketing Committee, Executive Director+CK@CP©MD©&SK?L©0CQMSPACQ©©0CKSLCP?RGML©Committee Membership of Board Sub Committees: Chairman of Board Audit Committee, Member of Board StrategicCurrent Appointments:©,ML©#VCASRGTC©\"GPCARMP©1?KN?RF© .J?LLGLE©!MKKGRRCC ?LI©.*!©!FGCD©#VCASRGTC©-LjACP©MD©02©2CJCTGQGML© PM?BA?QRGLE©!MKN?LW©.PGT?RC©*GKGRCB©\"GPCARMP©?R©'51© Current Appointments: ,ML©#VCASRGTC©\"GPCARMP©1?KN?RF© ?LI©.*!©%PMSN©$GL?LAC©\"GPCARMP©&GPBP?K?LG©%PMSN©&MJBGLEQ©.PGT?RC©*GKGRCB©\"GPCARMP©?R©0\"©.PMBSARGMLQ©.PGT?RC©*GKGRCB©+CK@CP©©7MSLE©*C?BCPQ©1RCCPGLE© MD©!MKN?LGCQ©,ML©#VCASRGTC©\"GPCARMP©MD©JSKCV©.*!©!MKKGRRCC©!CWJML©!F?K@CP©MD©!MKKCPAC©2PSQRCC©Š© &?WJCWQ©+%2©)LGRRGLE©.*!©7MSRF© SQGLCQQ©1PG©*?LI?©!CWJML©!F?K@CP©MD©!MKKCPAC Former Appointments: !FGCD©#VCASRGTC©-LjACP©4?LGI©Former Appointments :©!FGCD©#VCASRGTC©-LjACP©'51© ?LEJ?BCQF©1CASPGRGCQ©4.©MD©4?LGI©'LAMPNMP?RGML%CMEP?NFGA?J©'LDMPK?RGML©1WQRCKQ©.PGT?RC©*GKGRCB©

15MRS SAUMYA AMARASEKERASkills & Experience: Counts over 27 years in active legal2PSQRQ©?LB©.P?ARGAC©GL©!GTGJ©*?U©NP?ARGAGLE©GL©RFC©-PGEGL?J©NCJJ?RC©©1SNPCKC©!MSPR©?Q©?L©RRMPLCWR*?U©&MJBQ©?©+?QRCPQ©GL©*?U©DPMK©RFC©3LGTCPQGRW©MD©.CLLQWJT?LG?©UGRF©N?PRGASJ?P©CKNF?QGQ©ML©'LQSP?LAC©*?U©.PGT?AW©?LB©\"CD?K?RGML©*?U©1FC©F?Q©CVNCPGCLAC©GL©?PC?Q©PCJ?RGLE©RM©+MLCW©0CAMTCPW©.PMNCPRW©2CQR?KCLR?PW©!MLBMKGLGSK©\"GQNSRCQ©$?KGJW©*?U©?LB©JGRGE?RCQ©ML©@CF?JD©MD©džL?LAG?J©services sector clients and has specialised in local andinternational arbitrations.Appointed to the Board: 1st June 2012 as an'LBCNCLBCLR©,ML©#VCASRGTC©\"GPCARMPMembership of Board Sub Committees: ChairpersonMD© M?PB©,MKGL?RGML©!MKKGRRCC©DPMK©,MTCK@CP©©SLRGJ©RF©\"CACK@CP©©+CK@CP©MD© M?PB©,MKGL?RGML©!MKKGRRCC©?LB© M?PB©+?PICRGLE©!MKKGRRCCCurrent Appointments: ,ML©#VCASRGTC©\"GPCARMP©1?KN?RF© ?LI©.*!©Former Appointments: Member of Supreme CourtComplex Board of ManagementMR RANJITH SAMARANAYAKESkills & Experience: Extensive experience as HeadMD©$GL?LAC©©.J?LLGLE©?R©,?RGML?J©1?TGLEQ© ?LI©!MKKCPAG?J© ?LI©MD©!CWJML©.*!©?LB©1?KN?RF© ?LI©.*!©AMSLRQ©MTCP©©WC?PQ©MD©CVNCPGCLAC©GL©K?L?EGLE©džL?LAC©GL©RFC©džL?LAG?J©QCPTGACQ©QCARMP©&MJBQ©?© ?AFCJMP©MD©!MKKCPAC©AAMSLR?LAW©1NCAG?J©\"CEPCC©DPMK©RFC©3LGTCPQGRW©MD©.CP?BCLGW?Appointed to the Board: 1st January 2009 as anExecutive Director.Membership of Board Sub Committees: MemberMD© M?PB©!PCBGR©!MKKGRRCC© M?PB©'LRCEP?RCB©0GQI©+?L?ECKCLR©!MKKGRRCC© M?PB©1RP?RCEGA©.J?LLGLE©Committee and Board Treasury CommitteeCurrent Appointments: %PMSN©!FGCD©$GL?LAG?J©-LjACP©?LB©#VCASRGTC©\"GPCARMP©1?KN?RF© ?LI©.*!©\"GPCARMP©1GW?N?RF?©$GL?LAC©.*!Former Appointments: Senior Deputy General Manager,$GL?LAC©©.J?LLGLE©?R©!MKKCPAG?J© ?LI©MD©!CWJML©.*!

16 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Management*CNJ©RM©0GEFR 4 Mr Saman Herath © 1CLGMP©\"CNSRW©%CLCP?J©+?L?ECP©Š©-NCP?RGMLQ©©©1 Mr Aravinda Perera Managing Director Branch Credit2 Mr Ranjith Samaranayake 5 Mr Wije Dambawinne© #VCASRGTC©\"GPCARMP©©%PMSN©!FGCD©$GL?LAG?J©-LjACP© Deputy General Manager - Treasury3 Mr Nanda Fernando 6 Mr Tharaka Ranwala Senior Deputy General Manager Deputy General Manager - Marketing & Business Development

177 Mr Aruna Jayasekera 10 Mr Dinusha Ihalalanda© \"CNSRW©%CLCP?J©+?L?ECP©©&SK?L©0CQMSPACQ© Deputy General Manager - Operations8 Mr Ajantha de Vas Gunasekara Deputy General Manager - Finance9 Mrs Hiranthi De Silva Deputy General Manager - Corporate Credit

18 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Management*CNJ©RM©0GEFR 14 Mrs Nimali Abeyratne Assistant General Manager - Branch Banking11 Mr S Sudarshan Group Company Secretary 15 Mrs Shashi Jassim Assistant General Manager - Corporate Finance &12 Mr Amanda Abeyweera FCBU Assistant General Manager - Administration 16 Mr Pradeep Perera13 Mr Upali Dharmasiri © &C?B©MD©'LRCPL?J©SBGR©© QQGQR?LR©%CLCP?J©+?L?ECP©©0CAMTCPGCQ©

1917 Mrs Anuja Goonetilleke 20 Mr Ajith Salgado© !FGCD©!MKNJG?LAC©-LjACP© © &C?B©MD©'LDMPK?RGML©2CAFLMJMEW18 Mrs Nirosha De Silva Assistant General Manager - Card Centre19 Mr Manoj Akmeemana Assistant General Manager - Branch Banking

20 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Management*CNJ©RM©0GEFR 24 Mr Sanjaya Gunawardena © QQGQR?LR©%CLCP?J©+?L?ECP©©1RP?RCEGA©.J?LLGLE©©21 Mr Rajendra Ranasinghe© QQGQR?LR©%CLCP?J©+?L?ECP©©,CU©'2© SQGLCQQ© 0CQC?PAF© Development 25 Mrs Ayodya Iddawela Perera Assistant General Manager - Corporate Credit22 Mr Pununuwan Wickremasekera© !FGCD©*CE?J©-LjACP©23 Mr Sanath Abhayaratne Assistant General Manager - Global Business

21Chief Managers*CNJ©RM©0GEFR 4 Mr Thusitha Nakandala © !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE1 Mr Maheel Kuragama© !FGCD©+?L?ECP©Š©-NCP?RGMLQ© 5 Mr Prasantha De Silva Chief Dealer2 Mr H B Keerthiratne© !FGCD©+?L?ECP©Š©$GL?LAC©©$MPCV© ?AI©-LjAC©3 Mr Amal Kirihena© !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE

22 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChief Managers*CNJ©RM©0GEFR 10 Mr Sisira Dabare © !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE©6 Mr Dushyantha Dassanayake© !FGCD©+?L?ECP©Š©#JCARPMLGA©\"CJGTCPW©!F?LLCJQ© 11 Mr Saman De Silva ©© !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE©7 Mr Asoka Manikgoda© !FGCD©+?L?ECP©Š©0CAMTCPGCQ 12 Mrs Achala Wickramaratne © !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE©8 Mr Ananda Wijitha© !FGCD©+?L?ECP©Š©'2©#\". 13 Mrs Chamila Bandara © !FGCD©+?L?ECP©Š© P?LAF© ?LIGLE©9 Mr Thilak Abeysinghe Head of Deposits

2314 Mr Hemantha Marasinghe©© !FGCD©+?L?ECP©Š©#LEGLCCPGLE©1CPTGACQ15 Mr Lalith Weragoda©© !FGCD©+?L?ECP©Š©&SK?L©0CQMSPACQ©

24 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceSenior Managers*CNJ©RM©0GEFR 5 Mr Nalaka Gunawardena © 1CLGMP©+?L?ECP©Š©1WQRCKQ©SBGR1 Mr Vijith Peiris© 1CLGMP©+?L?ECP©Š©!MKNSRCP©-NCP?RGMLQ©'2#\". 6 Mr Prasanna Mullegama ©© 1CLGMP©0CEGML?J©+?L?ECP©2 Mr Priam Kasturiratna© %PMSN©0GQI©-LjACP© 7 Mr Janaka Jayasuriya © 1CLGMP©+?L?ECP©Š©!GRW©©!MKKCPAG?J©!PCBGR©3 Mr Prasada Gooneratne© 1CLGMP©+?L?ECP©Š©\"?R?@?QC©©BKGLGQRP?RGML©©©©©©©©©©©©©©©©©©© 8 Mr Lasantha Senaratne Assistant Company Secretary4 Mr Chatura Rudesh© 1CLGMP©+?L?ECP©Š©2P?BC©1CPTGACQ

259 Mrs Kumari Jayasuriya 13 Mr Gayan Ranaweera© 1CLGMP©0CEGML?J©+?L?ECP© © 1CLGMP©+?L?ECP©Š©!PCBGR©0GQI©10 Mr Pasan Manukith Senior Manager - Systems Development11 Mr Deepal De Silva©©© 1CLGMP©0CEGML?J©+?L?ECP©12 Mr Halin Hettigoda© 1CLGMP©+?L?ECP©©,CRUMPI©1CPTGAC©!CLRPC

26 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceSenior Managers*CNJ©RM©0GEFR 18 Mr Senaka Hewavitharana © 1CLGMP©+?L?ECP©Š©*CE?J©14 Ms Dulsiri Jayasinghe© 1CLGMP©+?L?ECP©Š©!MPNMP?RC©$GL?LAC© 19 Mrs Champika Nanayakkara © 1CLGMP©+?L?ECP©Š©!MPNMP?RC©!PCBGR©15 Mrs Aloka Ekanayake©© 1CLGMP©+?L?ECP©Š©$! 3© 20 Mr Kasun Ratnayake © 1CLGMP©0CEGML?J©+?L?ECP©16 Mr Lakmal Munasinghe© 1CLGMP©0CEGML?J©+?L?ECP© 21 Mr Shiran Kossinna © 1CLGMP©0CEGML?J©+?L?ECP©17 Mr Sumie Mithrapala© 1CLGMP©0CEGML?J©+?L?ECP©

2722 Mr Kasun Fernando 26 Mr Kusal De Silva© 1CLGMP©0CEGML?J©+?L?ECP© © 1CLGMP©+?L?ECP©Š©0CKGRR?LACQ©23 Mr Janaka Karunaratne© 1CLGMP©0CEGML?J©+?L?ECP©24 Mr Thushantha Sumithraarachchi© 1CLGMP©+?L?ECP©Š©1WQRCKQ©©.PMACBSPCQ©25 Mr Udara Suraweera© 1CLGMP©+?L?ECP©©©-NCP?RGMLQ©© SQGLCQQ©.PMACQQ© 0CCLEGLCCPGLE

28 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceVision & ValuesOur Vision“The Growing ForceGL©1PG©*?LI?L©$GL?LAG?J©1CPTGACQOur Values Create a learning culture that promotes individual and organisational development as well as promoting innovation and value for customers. Treat all internal and external customers the way we would like to be treated. Encourage and promote teamwork in all aspects of behaviour. Open to feedback and demonstrate an eagerness for personal development. Monitor and demonstrate an impressive commitment to results. Uncompromising ethical and professional standards of behaviour.

29Sustainability PhilosophyOUR SUSTAINABILITY VISION of corporate goals in sync with national priorities. AsFocus: 3600 Approach to Sustainability QSAF©?©DCU©WC?PQ©?EM©UC©GLGRG?RCB©?©QRP?RCEGA©QFGNJ©GL© MSP©!MPNMP?RC©0CQNMLQG@GJGRW©?NNPM?AF©KMTGLE©DPMK©Our sustainability vision is aligned to our strategic goal to a philanthropic focus to a more strategic approach.@CAMKC©RFC©EPMUGLE©DMPAC©GL©džL?LAG?J©QCPTGACQ©'L©BMGLE© We have since embraced a 3600 approach towardsso, it has always been our aim to create competitive sustainability to embody the promise of a sustainable future for all those associated with the business.advantages that would spearhead the accomplishment Sustainability Trends Stakeholder Corporate 0GEFRQ© Objectives Framework 3600 Strategic Approach to .J?LLGLE©Sustainability Sustainability .PMACQQStewardship 0GQI© Opportunities Management and Threats

30 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceProduct PortfolioOur product portfolio is geared to support theneeds of diverse customers. We provide customizedsolutions that complement our mainstreamMDžCPGLEQ©'L©RFGQ©K?LLCP©MSP©NPMBSARQ©QCCI©RM©empower our customers and help them map outtheir path to success. G4-4 Housing Loan Solutions Sampath App

31'LQNGPCB©@W©MSP©AMKKGRKCLR©RM©PC?AF© 41 OFF SITEMSR©RM©?JJ©1PG©*?LI?LQ©1?KN?RF© ?LI©.*!© ATMspresents a range of delivery channels thataim to strike a balance between traditional 1,565values and advances in modern technology. Interbank ATM Network220 Branches 12 Super Branches 326 ATMs (365 Days Banking)

32 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceHighlightsFINANCIAL HIGHLIGHTS 2014 BANK Change 2014 GROUP Change Rs Mn % Rs Mn % 2013 2013 Rs Mn Rs Mn.PMdžR?@GJGRW 45,469© © © 47,334© © Gross income 22,863 20,757 10.15 24,143 21,606 11.74Total operating incomeOperating expenses, impairment losses and 16,136© © © 16,896 16,817 0.48© 42©?LB©, 2©ML©$GL?LAG?J©1CPTGACQ© 6,727 4,491 49.79 7,247 4,789 51.33.PMdžR©@CDMPC©GLAMKC©R?V© 1,813 1,061 70.88 1,979 1,151 71.94'LAMKC©R?V©CVNCLQC© 4,914 3,430 43.27 5,268 3,638 44.80.PMdžR©DMP©RFC©WC?P©Assets & Liabilities 341,946 302,429 13.07 341,655 302,261 13.03Due to banks and other© ASQRMKCPQ©\"CNMQGRQ©MLJW© 302,370 260,040 16.28 310,504 266,548 16.49*M?LQ©RM©?LB©PCACGT?@JCQ©DPMK©@?LIQ©?LB© 30,912 28,418 8.78 34,604 31,760 8.95© MRFCP©ASQRMKCPQ©?NJCP©NPMTGQGML©DMP© 432,026 382,042 13.08 442,790 391,304 13.16 impairment lossesTotal equity 8.89Total assets 44.67 44.69Investor Information 184.10 169.37 8.70 205.53 188.75,CR©?QQCR©T?JSC©NCP©QF?PC©0Q© 236.30 171.90 37.46+?PICR©T?JSC©NCP©QF?PC©?R©RFC©WC?P©CLB©0Q© 43.13 31.35 21.67#?PLGLEQ©NCP©QF?PC©© ?QGA©0Q© 29.27 20.45 43.15 31.34 21.66#?PLGLEQ©NCP©QF?PC©©\"GJSRCB©0Q© 29.26 20.44\"GTGBCLB©WGCJB©̎© 0.22\"GTGBCLB©NCP©QF?PC©0Q© 4.66 4.65 37.50\"GTGBCLB©AMTCP©2GKCQ© 11.00 8.00%PMQQ©BGTGBCLB©0Q©+L© 2.56 3.91+?PICR©A?NGR?JGQ?RGML©0Q©+L 2.66 1,343 37.53 1,847 28,843 37.56 39,677Key Indicators 2.27© ©  2.31© © 'KN?GPKCLR©?JJMU?LAC©ML©JM?LQ©RM©©© PCACGT?@JCQ©DPMK©MRFCP©ASQRMKCPQ©̎ 1.69 1.29 31.01 1.78 1.34 32.840CRSPL©ML©?TCP?EC©?QQCRQ©̎ 1.23 0.98 25.51 1.29 1.02 26.47- before tax 16.35 12.88 26.94 15.68 12.47 25.74©?NJCP©R?V©0CRSPL©ML©COSGRW©?NJCP©R?V©̎© 53.95 51.23 5.31 53.24 51.22 3.94!MQR©RM©GLAMKC©P?RGM©UGRFMSR©42©©, 2©ML© 60.67 55.54 9.24 59.86 55.53 7.80 džL?LAG?J©QCPTGACQ©̎ 24.54© © !MQR©RM©GLAMKC©P?RGM©UGRF©42©©, 2©ML©© džL?LAG?J©QCPTGACQ©̎© *GOSGB©?QQCRQ©P?RGM©̎© Capital adequacy ratios (%) 8.83© © 8.96© © -Tier 1 13.62© © 13.72© © -Tier 1 &11LRA rating ©1R?@JC© ©1R?@JCFitch rating JI?©© JI?© 1R?@JC© 1R?@JC

33,-,˔$',,!'*©&'%&*'%&21 GROWTH IN NUMBER OF ATMS CUSTOMERS 19%GROWTH IN CUSTOMER BASE 201411.4% CUSTOMER COMPLAINTS SOLVED 2014 100% GROWTH IN NUMBER OF DEPOSIT 2014 ACCOUNTS #˔ ,)',%©%0-52&© 9.3% Sampath App SAMPATH APP DOWNLOADED 2014 51.3% GROWTH IN NUMBER OF LOAN ACCOUNTS VISHWA LOGINS 9.7% 58.5% 2014 SMS ALERTS REGISTRATIONSGROWTH IN NUMBER OF BRANCHES 40.5% 3.8% #˔0#+'22,!#©20,1!2'-,1 2014 23.5%

34 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceHighlights EMPLOYEESGROWTH IN WORK FORCE TOTAL NUMBER OF TRAINING HOURS 8.5% 2014 191,261.0-$'2©.#0©#+.*-7##©˒01©+,˓ 2014 1.2 2014 EMPLOYEE RETENTION 0.9 2013 97%MALE : FEMALE RATIO 2014 1.9 : 1 2014 NUMBER OF INDUSTRIAL DISPUTES1.7 : 1 2013 NIlAVERAGE TRAINING HOURS 2014PER EMPLOYEE PER ANNUM 47.8 2014 GOVERNMENT TAXES COLLECTED ON BEHALF OF THE GOVERNMENTTAXES PAID TO THE GOVERNMENT Rs1.24 BnRs3.05 Bn 2014 2014

35 COMMUNITY ENTREPRENEURSNUMBER OF CSR PROJECTS EXECUTED DEVELOPMENT EDUCATION FOR 1612014 DEVELOPMENT ENVIRONMENT PROTECTION 272014 & CONSERVATION EMPOWERMENT OF COMMUNITY 62 2014 ETHICS & VALUES 272014 ENVIRONMENT ELECTRICITY CONSUMPTION PER WATER CONSUMPTION PER EMPLOYEE #+.*-7##©.#0©,,3+©˒&#\"©-$$'!#˓ .#0©,,3+©˒&#\"©-$$'!#˓ 2,812kWh 35 m3 2014 2014PAPER RECYCLING REDUCE SAVING #, '- NUMBER OF WATER LANDFILL ELECTRICITY OIL GREENHOUSEFULLY GROWN ˒*'20#1˓ ˒!3 '!©+#20#1˓ (kWh) ˒*'20#1˓ GAS (Kg) TREES 2,237,534 211 281,628 123,564 70,407 1,1972014 CARBON CONSCIOUS 3,486 OFFICE 2014 NUMBER OF TREES PLANTED 2,753tCO2e CARBON FOOT PRINT FOR HEAD OFFICE DURING THE YEAR

36 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceAwards and Accolades for the Year HR Excellence Awards 2014 CA Sri Lanka Annual Report Sampath Bank, Human Awards 2014 0CQMSPACQ©+?L?ECKCLR©DSLARGML© Bronze award in Overall Excellence F?Q©@CCL©PCAMELGXCB©?R©,?RGML?J© GL©LLS?J©$GL?LAG?J©0CNMPRGLE©DMP© *CTCJ©?R©RFC©,?RGML?J©&0+© MSP©©LLS?J©0CNMPR©?R©RFC©!© Conference 2014 1PG©*?LI?©LLS?J©0CNMPR©U?PBQ CA Sri Lanka Annual Report Awards 2014 Gold award in the Banking 'LQRGRSRGMLQ©1CARMP©!?RCEMPW©DMP©MSP© ©LLS?J©0CNMPR©?R©RFC©!©1PG© *?LI?©LLS?J©0CNMPR©U?PBQBest Community Program Best Corporate Citizen National Best Quality ICTLeadership Award 2014 Sustainability Awards 2014 Awards 2014Sampath Bank was awarded Sampath Bank won prestigious Sampath Bank won thewith the prestigious Best awards in Best Corporate Citizen Gold Award for Commercial!MKKSLGRW©.PMEP?K© Sustainability Awards 2014 - the Applications and a Bronze*C?BCPQFGN©U?PB©?R©RFC© country’s top most Corporate Social U?PB©DMP©'LFMSQC©\"CTCJMNCB©QG?©0CQNMLQG@JC© SQGLCQQ© 0CQNMLQG@GJGRW©U?PB©ACPCKMLW© NNJGA?RGMLQ©#JCARPMLGA©2CJJCP©Excellence Awards - organized by the Ceylon Chamber 1WQRCK©?R©RFC©,?RGML?J© CQR©2014 held in Singapore of Commerce. /S?JGRW©'!2©U?PBQ©

Silver Award at the 37BestWeb.LK 2014Sampath Bank Website has Sri Lanka’s BestUML©RFC©1'*4#0©50\"©?R©RFC© Commercial and Retail Bank in 2014 CQR5C@*)©©!MKNCRGRGML© Sampath Bank is Sriin the Corporate, Banking, *?LI?Q© CQR©!MKKCPAG?J©$GL?LAC©©'LQSP?LAC©A?RCEMPW ?LB©0CR?GJ© ?LI©GL©© awarded at the World CSR Brand of the Year Silver Finance Banking Awards. Award 2014 Sampath Bank has won The Silver Award in the category MD©!10© P?LB©MD©RFC©7C?P©?R© 1*'+© P?LB©#VACJJCLAC©U?PB© CeremonyBest Bank in Sri Lanka – 2014 Sumathi Awards 2014Sampath Bank has been selected Sampath Bank Television?Q©RFC©
CQR© ?LI©GL©1PG©*?LI?©© Commercial on Sampath2014\" by the prestigious Business Sevana was awarded as theMagazine \"The Euromoney\" for Best Television Commercialthe second consecutive year MD©RFC©7C?P©©QR©0SLLCP©3N© at the Sumathi Awards 2014

38 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceMacro-economic ReviewTHE GLOBAL PERSPECTIVE INDUSTRY OVERVIEW'L©WCR©?LMRFCP©BGQAMLACPRGLE©WC?P©RFC©RPMS@JCB©EJM@?J© 1PG©*?LI?Q©@?LIGLE©QCARMP©AMKNPGQCQ©©BMKCQRGA©economy expecting to expand only by 3.3% in 2014, as licensed commercial banks, 12 foreign commercialthe pace of growth fell below forecasts for the second banks and 9 licensed specialised banks, with a collectiveconsecutive year. Although emerging economies did branch network of 6,531 branches and 2,599 ATMs as ataccount for a major portion of this growth, a noticeable ,MTCK@CP©©©ICW©AMLRPG@SRMP©RM©RFC©L?RGML?J©%\".©deceleration of economic activity in these economies the Banking Sector accounts for approximately 70% ofmeant a lower than expected result. On the other hand, RFC©RMR?J©?QQCRQ©GL©RFC©džL?LAG?J©QCPTGACQ©QCARMP©a gradual recovery was observed among the advancedeconomies, which allowed these economies to register Q©RFC©?NCV©@MBW©DMP©RFC©@?LIGLE©QCARMP©RFC©! 1*Q©NMJGAW©moderately improved growth rates for 2014. While this decision to maintain a low interest rate regime was theJCTCJ©MD©EPMURF©GQ©BCCKCB©RM©@C©GLQSLjAGCLR©RM©QRCK©RFC© ICW©BCRCPKGL?LR©RF?R©BCdžLCB©RFC©NCPDMPK?LAC©MD©RFC©cumulative down-side risks associated with low growth, GLBSQRPW©GL©©'L©RFGQ©PCE?PB©RFC©?LLMSLACKCLR©MD©RFC©CQA?J?RGLE©RCLQGMLQ©GL©0SQQG?©?LB©RFC©+GBBJCC?QR© systematic rate reductions, were followed by a steadytogether with the sharp drop in oil prices, also impacted BCAJGLC©GL©RFC©@MRF©RFC©TCP?EC©5CGEFRCB©\"CNMQGR©0?RC©the global economic performance for the year. 5\"0©?LB©RFC©TCP?EC©5CGEFRCB©.PGKC©*CLBGLE©0?RC© 5.*0©?JMLEQGBC©RFC©JMUCPGLE©MD©RFC©©KMLRF©©KMLRF©SRI LANKA AT A GLANCE and 12 month Treasury Bill yields. ?QCB©ML©RFC©PB©OS?PRCP©NCPDMPK?LAC©1PG©*?LI?Q© Amidst this backdrop, total banking sector assets greweconomy is estimated to record 7.8% growth for the @W©0Q©© L©?L©GLAPC?QC©MD©̎©@W©,MTCK@CP©©year 2014, more or less on par with the 7.3% registered compared to December 2013, aided by a growth ofGL©RFC©NPCTGMSQ©WC?P©,MR?@JC©EPMURF©U?Q©QCCL©GL©RFC© 0Q©© L©GL©BCNMQGRQ©?LB©0Q©© L©GL©@MPPMUGLEQ©@W©construction sector throughout the year, largely driven ,MTCK@CP©©GL©RFC©QCARMPby the growing number of condominium projects andinfrastructure development across the country. The 'L©AMLRP?QR©RFC©JMU©P?RC©PCEGKC©D?GJCB©RM©IGAI©QR?PR©RFC©leisure sector too, continued to expand strongly linked to anticipated private sector credit momentum and thethe rapid increase in tourist arrivals in the country, which industry continued to be trapped in a credit slump forsurpassed 1.5 Mn tourists as at 31st December 2014. the second consecutive year. With the private sector JM?L©@MMI©D?GJGLE©RM©PCEGQRCP©?LW©QGELGdžA?LR©EPMURF©RFC©LLS?J©?TCP?EC©GLLJ?RGML©GQ©CVNCARCB©RM©@C©?R©̎© industry found itself weighed down by excess liquidityin large part due to prudent demand management, throughout the year. Consequently most key players were@CLGEL©QSNNJW©AMLBGRGMLQ©?LB©UCJJ©AMLR?GLCB©GLLJ?RGML© seen resorting to low-yielding Treasury Bills and otherexpectations. Government Securities as a means of mopping up the excess liquidity situation. On a positive note, the excess.CP©A?NGR?©GLAMKC©GQ©CQRGK?RCB©RM©@C©?PMSLB©31\"©© liquidity helped to maintain a healthy Capital Adequacyin 2014. 0?RGM©?APMQQ©RFC©GLBSQRPWThe currency platform too remained strong throughout Meanwhile, with the industry embracing stricter creditRFC©WC?P©UGRF©RFC©0SNCC©?NNPCAG?RGLE©?E?GLQR©RFC©#SPM© control measures to curb the volume of bad loans,RFC©1RCPJGLE©.MSLB©RFC©(?N?LCQC©7CL©?LB©RFC©SQRP?JG?L© ?©QGELGdžA?LR©BPMN©U?Q©QCCL©GL©GLBSQRPWUGBC©,.*Q©Dollar, while depreciating marginally against the US N?PRGASJ?PJW©UGRF©.?ULGLE©NMPRDMJGM©CVNCPGCLAGLE©?©BPMN©GL©Dollar by December 2014. ,.*Q©+MPCMTCP©BCQNGRC©?©QJGEFR©GLAPC?QC©GL©RFC©GLBSQRPW UGBC©GKN?GPKCLR©NPMTGQGMLQ©RFC©TGQG@JC©BPMN©GL©,.*Q©?JQM©As the leading contributor to the country’s foreign resulted in an increase in the overall provision coverageexchange earning’s, worker remittances are expected for the year.to grow yet again by 9.2% adding USD 592 Mn to theAMSLRPWQ©C?PLGLEQ©!MLQCOSCLRJW©%PMQQ©-LjAG?J©0CQCPTCQ© On the other hand, the low interest rates had anare also expected to reach USD 8,200 Mn by the end of unhealthy impact on deposits, which demonstrated only athe year 2014. KMBCP?RC©EPMURF©MD©̎©@W©,MTCK@CP©©&MUCTCP©

39?©QGELGdžA?LR©GLAPC?QC©U?Q©QCCL©GL©RFC©MTCP?JJ©!SPPCLR© INDUSTRY TREND IN DEPOSITS?LB©1?TGLEQ©AAMSLRQ©!1©P?RGM©UFGAF©QRMMB©?R©̎©@W©,MTCK@CP©©?Q©AMKN?PCB©RM©RFC©̎©DMP©RFC© Rs Bnprevious year 2013. 5,000 7302FC©AMKNMSLB©CDžCAR©MD©RFC©QJMU©APCBGR©BCK?LB©RFC© 4,000excess liquidity and the slow deposit growth caused an 3,000 680?BTCPQC©GKN?AR©ML©GLBSQRPWUGBC©,CR©'LRCPCQR©'LAMKC© 2,000 615,''©,CTCPRFCJCQQ©BCQNGRC©RFGQ©?BTCPQC©GKN?AR©RFC©GLBSQRPW©U?Q©QRGJJ©?@JC©RM©K?GLR?GL©?©KMBCP?RC©,''©EPMURF© 496MD©̎©@W©,MTCK@CP©©?Q©AMKN?PCB©RM©̎©BSPGLE© 2,577the corresponding period in 2013. This was mainly due to 3,010timely re-pricing and other fund management strategies 3,490adopted by Banks. 3,871Underscored by the prospect of continuous drop in 1,000,''©KMQR©GLBSQRPW©NJ?WCPQ©UCPC©QCCL©R?IGLE©QRCNQ©RM©streamline their operational parametres and derive a 0 2012 2013 Nov 2014KMPC©CLjAGCLR©AMQR©QRPSARSPC©RM©FCJN©ASPR?GJ©RFC©B?K?EC© 2011 FCY DepositsRM©,'+©?LB©K?GLR?GL©NPMdžR?@GJGRW©5FGJC©GKNPMTGLE©RFC©PCQGJGCLAC©MD©RFC©GLBSQRPW©RFCQC©CDžMPRQ©?JQM©FCJNCB©RM© LKR Depositsproduce an acceptable level of performance in 2014. INDUSTRY TREND IN NPL (%) 8 Rs Bn 200 150 191 181 100 3.7 6 3.8 5.6 50 4.8INDUSTRY TREND IN ASSETS 99 4 117 Rs Bn 28,000 007,0006,000 2011 2012 2013 Nov 20145,0004,000 Gross NPL Gross NPL Ratio3,0002,000 4,2521,000 5,098 5,941 0 6,780 2011 2012 2013 Nov 2014INDUSTRY TREND IN LOANS Rs Bn4,0003,500 7913,000 6232,500 559 2,000 451 2,1501,500 2,590 2,803 3,0121,0005000 2012 2013 Nov 2014 2011 FCY Loans LKR Loans

40 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChairman’s Report

41 G4-1 'L©RFC©N?QR©1?KN?RF© ?LI©F?Q©BCJGTCPCB©AMLQGQRCLRJW©LMR© just to shareholders, but to all stakeholders especially theDear Stakeholders, AMKKSLGRGCQ©GL©UFGAF©UC©MNCP?RC©'KNMPR?LRJW©UC©F?TC© achieved this by better abiding to our strategy, focusing'R©EGTCQ©KC©EPC?R©NJC?QSPC©RM©NPCQCLR©RM©WMS©RFC© on the basics of good banking, with clients and customers?SBGRCB©džL?LAG?J©QR?RCKCLRQ©MD©WMSP© ?LI©DMP©RFC© with whom we have deep, and in many cases long,year 2014. Despite the many challenges, the intense relationships. We endeavour to create value and take aAMKNCRGRGTCLCQQ©MD©RFC©džL?LAG?J©QCPTGACQ©QCARMP©?LB© long-term view of our obligations to our shareholders,indeed the interplay of global pressures, your Bank our clients and customers and the communities in whichcontinued to maintain its momentum of growth. we operate.'R©GQ©RFGQ©KMKCLRSK©MD©EPMURF©UFGAF©K?ICQ©RFGQ©WC?PQ© %MMB©PCQSJRQ©?LB©?©QRPMLE©@?J?LAC©QFCCR©UGRF©BGTCPQGdžCB©theme “Ask our Stakeholders” all the more relevant, PGQIQ©?©@PM?B©ASQRMKCP©@?QC©AMSNJCB©UGRF©FGEF©CLjAGCLAW©@CA?SQC©MSP©džL?LAG?J©NCPDMPK?LAC©RFGQ©WC?P©GQ©LMR©MLJW© and cost controls, provide our shareholders with a basisPCLJCARGTC©MD©MSP©EPMURF©QRMPW©@SR©?JQM©MD©RFC©K?LW© DMP©?©EMMB©PCRSPL©GL©RFC©DMPK©MD©?©BGTGBCLB©'R©GQ©?E?GLQR©growth stories around the country of our multiple RFGQ©@?AIBPMN©RF?R©RFC© ?LIQ©džL?LAG?J©R?PECRQ©QFMSJB©@C©QR?ICFMJBCPQ©Š©DPMK©QF?PCFMJBCPQ©ASQRMKCPQ©CKNJMWCCQ© seen. A stable bank over time provides shareholders withbusiness partners to the communities around us and the the greatest appreciation in value. At the same time theenvironment. Board understands that it is the employees through their day-to day work to build good customer relations and to'L©CQQCLAC©BCQNGRC©?©RSP@SJCLR©BCA?BC©Š©DMP©RFC©UMPJB© run the Bank well, which creates this value and results.CAMLMKW©?LB©DMP©RFC©EJM@?J©džL?LAG?J©QCPTGACQ©QCARMPŠ© 'R©GQ©MLJW©PC?QML?@JC©RFCL©RF?R©RFCQC©CVRP?MPBGL?PW©we have continued to deliver consistent value for our CDžMPRQ©@W©CKNJMWCCQ©?PC©PCU?PBCB©GL©?©UCJJ@?J?LACB©QR?ICFMJBCPQ©?©DC?R©RF?R©'©@CJGCTC©GQ©PCNPCQCLR?RGTC©MD© remuneration programme that helps to produce positiveUF?R©UC©Š©1?KN?RF© ?LI©Š©QR?LBQ©DMP© SR©GR©GQ©LMR©MLJW© results and sound risk-taking. This cyclical movement ofRFC©T?JSC©RF?R©UC©BCJGTCPCB©RF?R©BCdžLCQ©SQ©GLQRC?B©GR©GQ© EMMBUGJJ©BCdžLCQ©RFC©CQQCLAC©MD©EMMB©@SQGLCQQ©NP?ARGACthe value that we will present to the future that makes usunique. We believe that strong governance is crucial to our long-term success. The complexity of operations in theWith a clear vision and purpose based on solid values, džL?LAG?J©QCPTGACQ©QCARMP©K?ICQ©?ARGTC©?LB©AMLQRPSARGTC©Sampath Bank has worked with resolve to meet its corporate governance necessary, and has necessitatedstrategic priorities. As a sustainable business that that we establish clear goals, strategies, values and goodintegrates sustainable practice to how we do business, risk controls. Governance remains the Board’s highestwe have utilised a focused strategy-driven approach that priority, duty and responsibility.leverages our core competencies. With a sustainablebusiness strategy that is fully aligned to the national 'L©AMLAJSQGML©©U?Q©?LMRFCP©WC?P©MD©EMMB©strategy, we have consistently catalysed socio-economic performance for Sampath Bank. Today we are achange. Underpinned by our sustainability philosophy, we stronger bank in many respects thanks to a consistenthave formulated a sustainable business blueprint that strategy, a stable management team, supportive clients,addresses key national priorities alongside corporate customers and shareholders, and, above all, our greatobjectives. You, our shareholders and stakeholders will be RC?K©'©?Q©WMSP©!F?GPK?L©?LB© M?PB©MD©\"GPCARMPQ©PCK?GL©pleased to note that at Sampath Bank, our interpretation AMLdžBCLR©DMP©RFC©WC?P©?FC?B©5C©DCCJ©AMLdžBCLR©?@MSR©MD©AMPNMP?RC©QSAACQQ©GQ©FGLECB©LMR©KCPCJW©ML©MSP©džL?LAG?J© RFC©DSRSPC©PCE?PBJCQQ©MD©FMU©RFC©CAMLMKW©?LB©džL?LAG?J©performance alone but the collective impact on the triple markets develop. A bank like yours, which wants to gives@MRRMK©JGLC©Š©.CMNJC©.J?LCR©©.PMdžR© stakeholders the opportunity to grow in a sustainable K?LLCP©UC©@CJGCTC©BCdžLGRCJW©F?Q©?©PMJC©GL©RFC©DSRSPCWe remain committed to the principles of the United,?RGMLQ©%JM@?J©!MKN?AR©3,%!©GL©RCPKQ©MD©QF?NGLE©MSP© My appreciation to the Board of Directors, thebusiness ethic, while the Customer Charter of The Central Management and the entire Sampath Bank team for their dedication and resolve. ?LI©MD©1PG©*?LI?©GQ©RFC©DMSLB?RGML©DMP©MSP©K?L?ECKCLR©?NNPM?AF©RM©ASQRMKCP©QSQR?GL?@GJGRW©2FGQ©džL?LAG?J©WC?P© Dhammika Pererawe have re-asserted our commitment to sustainability ChairmanPCNMPRGLE©RFPMSEF©RFC©?BMNRGML©MD©%JM@?J©0CNMPRGLE©'LGRG?RGTC©%0'©?LB©PCNMPR©?E?GLQR©%©APGRCPG?©2FGQ©LLS?J© !MJMK@M©1PG©*?LI?0CNMPR©GQ©?JQM©1?KN?RF© ?LIQ©džPQR©GLRCEP?RCB©LLS?J© 19th February 20150CNMPR©?LB©'©?K©NJC?QCB©RF?R©UC©F?TC©KMTCB©GLRM©?©reporting format that is representative of and facilitatessustainable business agendas.

42 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceManaging Director’s Review

43Symbolic of our vision credit demand. An alarming trend observed throughoutto present a promising the year, saw many private institutions moving awayfuture for all citizens from the banking system and seeking alternativeMD©1PG©*?LI?©UC©?R© funding through listed debentures and foreign direct1?KN?RF© ?LI©.*!© @MPPMUGLEQ©+C?LUFGJC©RFC©! 1*Q©@CQR©CDžMPRQ©RM©remain committed to create a competitive credit culture, by a reduction inengender meaningful policy rates also failed to trigger the desired creditchange for the nation. momentum. Beleaguered by the lack of an adequate credit demand, the industry struggled with the problem People PlanetWe continue to uphold the promise to Profitdeliver consistent value for all stakeholdersas we believe that our success ismeasured not only in terms of our abilityto produce shareholder value, but alsoour accountability to all stakeholdersassociated with our business.Symbolic of our vision to present a promising future for We have embraced the triple bottom line model as a?JJ©AGRGXCLQ©MD©1PG©*?LI?©UC©?R©1?KN?RF© ?LI©.*!©PCK?GL© template to convey tangible value to all those impactedcommitted to engender meaningful change for the by our work.nation. of excess liquidity throughout the year, arguably the most5FCRFCP©GR©GQ©LCEMRG?RGLE©RFC©C@@Q©?LB©LJMUQ©MD©RFC© disturbing aspect that marred the performance of thecountry’s business landscape or navigating through industry.socio-environmental undercurrents, we have alwaysremained true to our fundamental values. We continue For our part, we continued to respond with strategiesto uphold the promise to deliver consistent value that would rationalise market sentiments in tandemto all stakeholders as we believe that our success is UGRF©AF?LEGLE©N?P?BGEKQ©'R©GQ©RFSQ©UGRF©KSAF©NPGBC©RF?R©measured not only in terms of our ability to produce '©LMRC©MSP©HMSPLCW©DPMK©RFC©AMLTCLRGML?J©@PGAIQ©?LB©shareholder value, but also our accountability to all mortar banking ideology towards a more vibrant bankingstakeholders associated with our business. Underscored blueprint that advocates a new level of quality assuranceby this rationale we have embraced the triple bottom DMP©RFC©ASQRMKCP©'L©KCCRGLE©RFCQC©CVNCAR?RGMLQ©UC©F?TC©line model as a template to convey tangible value to all drawn on the stability of our banking legacy. To furtherRFMQC©GKN?ARCB©@W©MSP©UMPI©AAMPBGLEJW©GL©RFGQ©MSP©džPQR© strengthen our core competencies, during the yearintegrated report, we seek to illustrate our long-term we made investments in developing our infrastructurecommitment to foster sustainable progress along a network and worked on repositioning our brand identity@PM?BCP©džL?LAG?J©?LB©QMAGMCLTGPMLKCLR?J©DP?KCUMPI ?Q©?©RPSJW©GLBGECLMSQ©1PG©*?LI?L©AMKKMBGRW©Q©'©PCA?N©RFC©džL?LAG?J©NCPDMPK?LAC©'©LMRC©RF?R©RFC©WC?P©2014 was yet another trying one not only for Sampath We continued with our expansion agenda to increase the number of touch points across the country, albeit at ?LI©.*!©@SR©GLBCCB©DMP©1PG©*?LI?Q©CLRGPC©@?LIGLE© a slower pace than in the past few years. While 8 newindustry, where industry-wide advance growth remained branches were added to the network in 2014, we also?R©?L©SLNPCACBCLRCB©JMU©MD©̎©'©@CJGCTC©?©LSK@CP©MD© sought to further expand our footprint, mainly throughfactors were responsible for this restrained performance,among them was the visible slump in the private sector

44 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceManaging Director’s ReviewOur priority for the commissioning of 4 additional Super branches in Borella,year however, was LSP?BF?NSP?©+?F?P?E?K?©?LB©\"?J?B?©4GBGW?©)?LBW©'R©to reposition the is very encouraging to note the overwhelming customer“Sampath” brand as the response to the “Super Branch” concept, at all our Superbrand of choice among branch locations.1PG©*?LI?Q©@?LIGLE©masses. With this clear Our priority for the year however, was to reposition theaim in mind, we set in “Sampath” brand as the brand of choice amongmotion a comprehensive 1PG©*?LI?Q©@?LIGLE©K?QQCQ©5GRF©RFGQ©AJC?P©?GK©GL©KGLB©action plan to we set in motion a comprehensive action plan tore-engineer the brand re-engineer the brand identity as a key driver ofidentity as a key driver corporate goals. All communication and promotionalof corporate goals. OUR PERFORMANCE 2014 2013 2012 Total operating © ©  © GLAMKC©0Q© L© © ©  .PMDGR©@CDMPC©R?V©0Q© L© © ©  .PMDGR©?DRCP©R?V©0Q© L© © © © 0CRSPL©ML©COSGRW©̎© 0CRSPL©ML©?QQCRQ© © ©  © ?DRCP©R?V©̎© © ©  ,CU©@P?LAFCQ© © ©  ,CU©2+Q©+P©P?TGLB?©.CPCP?©©+?L?EGLE©\"GPCARMP©?BBPCQQGLE©RFC© materials were aligned accordingly, together with aget together of trade customers corporate communication campaign to integrate these concepts at an operational level as well. CoincidingRFC©2+©LCRUMPI©UFGAF©JCB©RM©©LCU©2+Q©UFGAF© with this brand building exercise, we also rolled out aGLAJSBCQ©@MRF©ML©?LB©MDž©QGRC©2+Q©@CGLE©AMKKGQQGMLCB© formalised visual theme to strengthen the “Sampath”during the year. Our “Super Branch” concept also gained brand identity across the island. The latter also correlatesconsiderable momentum in 2014, which led to the with our long term inclusive banking goals through which we expect to absorb a greater portion of the unbanked masses into the formal banking system. While captioning RFC©AF?LEGLE©ASQRMKCP©BCKMEP?NFGAQ©'©@CJGCTC©RFCQC© strategies would help deliver a new dimension of banking to the masses. +MPCMTCP©'©CVNCAR©RFCQC©KMTCQ©UMSJB©?JQM©FCJN©SQ©RM© integrate with communities impacted by our business, thereby laying the foundation for lasting social change in the longer term.

45CASA 41 47 focus on commercial and personal lending, including leasing. Meanwhile, despite the inevitable negative % 34 GKN?AR©ML©,'+Q©UC©AMLRGLSCB©RM©PCBSAC©MSP©CVNMQSPC© 50 35 in the pawning space. Thus, our loan portfolio, excluding 40 N?ULGLE©PCAMPBCB©?©7M7©EPMURF©MD©̎©'©@CJGCTC© 30 this is indeed a commendable achievement given the 20 intense competition in the market and near stagnant 10 APCBGR©?NNCRGRC©QCCL©RFPMSEFMSR©RFC©WC?P©.?P?JJCJ©RM©MSP© 0 CDžMPRQ©RM©EPMU©RFC©JM?L©@MMI©QMSLB©,.*©K?L?ECKCLR© strategies were also initiated in a bid to maintain the 2011 2012 2013 2014 APCBGR©OS?JGRW©MD©RFC©NMPRDMJGM©?LB©KGLGKGQC©,.*Q©Meanwhile, considerable resources were channelled .SPQS?LR©RM©MSP©DMASQ©ML©BCTCJMNGLE©RFC©NCPQML?J©@?LIGLE©towards research and new product development to space, we also aggressively promoted the Credit cards. Tohelp us understand the complexities of the modern meet our growth objectives we formulated a campaigncustomer. By leveraging on our competitive advantage, that would target both organic and non-organic growth ofextensive infrastructure and superior technological our cards customer base. With service enhancements andplatform, we were able to produce pragmatic solutions value additions being the crux of our platform, we wereRF?R©PCLJCAR©RFC©BGTCPQGRW©MD©K?PICR©PCOSGPCKCLRQ©2FC© able to record a YoY growth of 16.4%. Sampath cards“Deposit Kiosks” introduced by us in two locations is one ?JQM©PC?AFCB©?©QGELGdžA?LR©KGJCQRMLC©BSPGLE©RFC©WC?P©of the many initiatives launched during the year. Having celebrating its 25th anniversary in 2014. Celebrations toa well-established ATM presence across the country, K?PI©RFC©MAA?QGML©IGAICB©MDž©UGRF©?©QNCAG?J©NPMKMRGML?J©we were assured of being able to support customer event held in the Maldives to coincide with the launchcash withdrawals, without the need to visit the Bank. MD©RFC©1?KN?RF© ?LI©KCPGA?L©#VNPCQQ}©.J?RGLSK©This prompted us to look at the deposit aspect as well, 3JRP?KGJCQ©!PCBGR©!?PB©'R©GQ©GLBCCB©TCPW©EP?RGDWGLE©DMP©which spearheaded the introduction of the Deposit KC©RM©LMRC©RF?R©UC©?PC©LMU©RFC©MLJW©@?LI©GL©1PG©*?LI?©)GMQIQ©'©QRPMLEJW©DCCJ©GR©GQ©RFGQ©RWNC©MD©NPCAGQC©DMASQ©RF?R© ?@JC©RM©MDžCP©A?PBQ©SLBCP©?JJ©RFPCC©K?HMP©EJM@?J©A?PB©was critical in ensuring customer retention amid the DP?LAFGQCQ©4GQ?©+?QRCP©©KCVunderlying challenges that characterised the bankingindustry in 2014. 1RP?GLCB©@W©RFC©BCAJGLGLE©,'+Q©RFC©FGEFJW©JGOSGB©K?PICRQ© remained the key determinant of performance in the$PMK©?©džL?LAG?J©NCPQNCARGTC©?Q©RFC©JMU©GLRCPCQR©P?RCQ© corporate banking arm. Our strategic focus was thereforeAMLRGLSCB©RM©GLLJSCLAC©MSP©,CR©'LRCPCQR©'LAMKC©,''© to develop sound business fundamentals that wouldwe revisited our personal banking model in order to support the stability of our corporate banking model andarrest any further decline in the bottom line. Altering ensure consistent performance in the long term. Despitethe deposit mix in a bid to capture current market RFC©M@TGMSQ©GKN?ARQ©MD©RFC©NCPQGQRCLR©APCBGR©QJSKN©'©?K©movements, we took a conscious decision to ease high- F?NNW©RM©LMRC©RF?R©MSP©CDžMPRQ©RM©PCR?GL©AJGCLRQ©F?TC©N?GB©cost term deposits and focused on growing our Current MDž©?LB©MSP©AMPNMP?RC©AJGCLR©NMPRDMJGM©PCK?GLQ©GLR?AR©?LB©1?TGLEQ©AAMSLRQ©!1©@?QC©2FC©QRP?RCEW©U?Q© Despite the drop in margins, the portfolio has continuedalso aimed at curtailing any further escalation of our to perform consistently with a satisfactory contributionliquid assets. We embarked on an aggressive volume to the Bank’s overall bottom line in 2014.driven agenda to generate organic growth, particularly inPCEGMLQ©MRFCP©RF?L©RFC©5CQRCPL©.PMTGLAC©Q©RCQR?KCLR©RM© &MUCTCP©?Q©,'+Q©AMLRGLSCB©RM©QJGBC©UC©NSPQSCB©RFC©QSAACQQ©MD©MSP©CDžMPRQ©BCNMQGRQ©Q?U©?©7M7©EPMURF©MD© alternatives to halt any further erosion of the bottom13.1%, with CASA accounting for over 47.0% of the total line. While serving the mainstream banking needs of thedeposits as at the end of 2014. AMPNMP?RC©@SQGLCQQ©DSLARGML©UC©NSR©GL©KSAF©CDžMPR©RM© develop dynamic business solutions and gear ourselves&MUCTCP©BCQNGRC©RFCQC©CDžMPRQ©UC©AMLRGLSCB©RM©@C© to facilitate the emerging needs of modern commerce.burdened by excess liquidity as we faced with the Hence the strong emphasis on fee-based activitiesNPMQNCAR©MD©BCAJGLGLE©,CR©'LRCPCQR©+?PEGLQ©,'+Q© AMLRGLSCB©RFPMSEFMSR©RFC©WC?P©'L©JGLC©UGRF©RFGQ©BCAGQGML©To curb the negative impact on the bottom line we we launched an aggressive campaign to promote our?AACJCP?RCB©CDžMPRQ©RM©EPMU©RFC©JM?L©@MMI©UGRF©?©EPC?RCP© ASQRMBG?J©QCPTGACQ©MDžCPGLE©5C©?JQM©DMASQCB©ML©BCTCJMNGLE© our trade services platform, with greater emphasis on servicing the export sector.

46 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceManaging Director’s ReviewTo diversify our corporate banking platform, during As the level of market competition continues to heighten,the year we took steps to capture a larger segment '©CVNCAR©RFC©AMQRQ©MD©RFC©AMLTCLRGML?J©@P?LAF©@?LIGLE©of the Micro, Small and Medium Scale Entrepreneur model to escalate considerably in the near term. We+1+#©K?PICR©?APMQQ©RFC©GQJ?LB©+MPCMTCP©?JGELCB© would thus need to look at altering the conventionalto our goal to develop the country’s non-conventional @P?LAF©RCKNJ?RC©GL©D?TMSP©MD©BGDžCPCLRG?RCB©@P?LAF©PCLCU?@JC©CLCPEW©QCARMP©,!0#©UC©?ARGTCJW©CLE?ECB©GL© concepts that represents the diversity of the marketpromoting clean energy projects that would safeguard needs while at the same time corresponding to aRFC©CLTGPMLKCLR©DMP©DSRSPC©ECLCP?RGMLQ©'©@CJGCTC©RFGQ©GQ© more sustainable cost structure. Further, as customerRFC©@CQR©?LB©KMQR©NP?ARGA?J©U?W©GL©UFGAF©UC©A?L©DSJdžJ©MSP© demographics continue to change, we are likely have toresponsibility to the environment, as the direct impact deal with lifestyle banking as opposed to the conventionalfrom our operations are decidedly limited. JGDCAWAJC©@?LIGLE©GBCMJMEW©'R©GQ©RFSQ©GKNCP?RGTC©RF?R©UC© explore alternate delivery channels that feature solution-However, our consciousness of the issue has led us to @?QCB©AMLTCLGCLAC©RM©DSJdžJ©RFCQC©CVNCARCB©BCJGTCP?@JCQ©develop a framework of environmental reporting that At the same time, it is also important that we strikePCLJCARQ©MSP©AMKKGRKCLR©RM©K?L?EC©CTCL©RFC©JGRRJC© the right balance between innovation and feasibility.GKN?AR©RF?R©UC©K?W©A?SQC©'L©RFGQ©PCE?PB©'©?K©NPMSB© This would undoubtedly depend on a strong productRM©LMRC©RF?R©RFC©1?KN?RF© ?LI©.*!Q©&C?B©-LjAC©U?Q© development and research platform, where data analyticsACPRGdžCB©?Q©?L©CLTGPMLKCLR?J©AMLQAGMSQ©MLjAC©GL©© TOTAL ASSETS'©MUC©RFGQ©?LB©?JJ©MSP©?AFGCTCKCLRQ©RM©MSP©CKNJMWCCQ©who are the driving force behind everything that we do. Over'R©GQ©RFCGP©N?QQGML©RF?R©F?Q©FCJNCB©SQ©PC?JGQC©MSP©AMPNMP?RC©aspirations regardless of the challenges of 2014. As in 432,000the past, in this year too, we have remained steadfastin the commitment to our employees as we continue to (Rs Mn)provide a nurturing environment that would stimulatethe desire to succeed.LOOKING AHEAD&?TGLE©D?ACB©?©AF?JJCLEGLE©WC?P©'©A?L©MLJW©CVNCAR©RFC©prospects for the future to be more conducive forsustainable growth for all stakeholders of Sampath Bank.*!©$MP©MSP©N?PR©UC©UGJJ©AMLRGLSC©RM©GKNJCKCLR©PM@SQR©strategies that would ensure consistent performance inline with medium term corporate goals. NET FEE AND COMMISSION INCOME & NIM Rs Mn (%) 3,500 8 3,000 6 2,500 3.99 4.05 4.39 5 2,000 1,500 1,811 4 2,149 3.95 2,543 3,087 3 1,000 2 500 1 0 0 2011 2012 2013 2014 Net Fee & Commission NIM+P©P?TGLB?©.CPCP?©©+?L?EGLE©\"GPCARMP©PCACGTGLE©RFC© IncomeEuromoney Award for excellence 2014

47'©?K©NPMSB©RM©LMRC©RF?R©RFC©1?KN?RF© ?LI©.*!Q©&C?B©-LjAC©U?Q©ACPRGdžCB©as an environmentalAMLQAGMSQ©MLjAC©GL©©NJ?W©?©NGTMR?J©PMJC©GL©BCTCJMNGLE©?©QSQR?GL?@JC©MDžCPGLE©Supported by this invaluable business framework, we alsoexpect to connect with communities through our workand help manifest truly meaningful societal change thatwill ensure the betterment of the nation as a whole.As we strive to translate these strategies into reality, weUMSJB©?JQM©LCCB©RM©K?IC©QGELGdžA?LR©GLTCQRKCLRQ©RMU?PBQ©developing our people. Given our corporate ambitions,'©DCCJ©GR©GQ©APSAG?J©RF?R©UC©ASJRGT?RC©?©DSRSPC©PC?BW©workforce capable of ensuring progress for allQR?ICFMJBCPQ©MD©1?KN?RF© ?LI©.*!©Aravinda PereraManaging Director!MJMK@M©1PG©*?LI?19th February 2015

a trajectoryof growth INTEGRATED MANAGEMENT DISCUSSION AND ANALYSIS