Annual Report

SA M *AT H BA N K LL A L AL RE P 0 § T §

THE COMPASSION CODE

At Sampath Bank, compassion is the foundation upon which we build our collective progress. It is embedded into our DNA and shapes our ethos – while guiding the way we live and work every day. It defines how we care for people, safeguard the planet, and empower the communities we serve.

Technology enables us, but empathy leads the way—enabling us to anticipate needs, deliver timely support, and craft experiences that are both personal and impactful. Every solution we create is designed to offer convenience, simplify life, and open pathways to opportunity, ensuring that every stakeholder's journey with us is defined

by stability, security, and trust.

By uniting innovation with human understanding and insight, we are shaping a future in which individuals flourish, businesses advance, and communities thrive in harmony with the environment. From driving financial inclusion and enabling sustainable practices

to fostering connections that transcend transactions, we are building far more than a bank—we are creating a movement of benevolence and shared prosperity.

In every interaction, we reaffirm our promise: to nurture an ecosystem of growth where innovation serves humanity, progress is shared, and care defines our path forward.

This is our Compassion Code.

TABLE OF CONTENTS

4 Welcome to Our 12th Integrated Annual Report

PURPOSEFUL STRATEGY

MANAGEMENT DISCUSSION

WHO WE ARE

LEADERSHIP INSIGHTS

Disclosures

66 Interview with the Chairperson of

Page 112

Page 118

Page 22

Page 26

Financial Capital

Manufactured Capital

Page 124

Page 131

Intellectual Capital

Human Capital

Page 142

Page 169

Chairman’s Message

Managing Director/

Chief Executive Officer’s Review

Social and Relationship Capital

Natural Capital

2025 will undoubtedly be remembered as a year of exceptional significance in our growth journey and a defining chapter in the Bank’s annals.

Our winning strategy, which delivered resilient results in 2025, is anchored on Customer Centricity, Operational Excellence, Digital Leadership, and Sustainable Growth.

Page 66

Report on SLFRS S1 and S2 Sustainability-Related Financial Disclosures

Page 285

Board Sustainability Committee Report

Page 13

Page 34

View the PDF Version of this Annual Report Online

https://www.sampath.lk/investor-relations?section=Annual-Reports

Performance Highlights

Our Strategy

Sampath Bank PLC | Annual Report 2025

2

GOVERNANCE AND RISK MANAGEMENT

Corporate Governance Reports

217 Chairman’s Message on Corporate Governance

218 Corporate Governance at Sampath Bank

232 Governance Structure

Governance Leadership

234 Board of Directors

238 Corporate Management

241 Chief Managers

244 Report by the Senior Independent Director

Committee Reports

245 Board Nominations and Governance Committee Report

256 Board Audit Committee Report

264 Board Human Resources and Remuneration Committee Report

271 Board Integrated Risk Management Committee Report

FINANCIAL INFORMATION

350 Financial Calendar

351 Annual Report of the Board of Directors on the Affairs of the Company

358 Directors’ Interest in Contracts

with the Bank

360 Directors’ Statement on Internal Control Over Financial Reporting

362 Independent Assurance Report to the Board of Directors of Sampath Bank PLC

363 Managing Director/Chief Executive Officer’s and Executive Director/ Chief Financial Officer’s Responsibility Statement

364 Statement of Directors’ Responsibility for Financial Reporting

366 Independent Auditor's Report to the Shareholders of Sampath Bank PLC

SUPPLEMENTARY INFORMATION

522 Ten Years at a Glance

524 Quarterly Statistics

526 Statement of Profit or Loss in US$

527 Statement of Comprehensive

Income in US$

528 Statement of Financial Position

in US$

529 Investor Relations

539 Direct Economic Value Generated and Distributed - Bank

540 Annexures to Corporate Governance Report

541 Basel III Disclosure Requirements

551 GRI Content Index

555 SLFRS S1 and S2 Taxonomy

558 Sustainability Accounting Standards Board (SASB) Index

559 Independent Practitioner’s Assurance Report to the Board

of Directors of Sampath Bank PLC on the Integrated Annual

Report 2025

561 Independent Practitioner’s Assurance Report to the Board of Directors of Sampath Bank PLC on the Sustainability

316 Compliance Report

317 Risk Management Report

571 Stakeholder Feedback Form

IBC Corporate Information

Encl. - Form of Proxy

View the AI Powered Digital Version of this Annual Report Online

In 2025, Sampath Bank further strengthened its digital reporting ecosystem with the launch of the upgraded AI-Powered Digital Annual Report. Purpose-built to deliver key corporate information in a seamless, accessible, and user-centric format, the enhanced platform integrates a suite of advanced AI-driven capabilities. These include an Interactive AI Avatar with Voice-enabled Engagement, an Intelligent PDF Search Tool for faster information retrieval, a Concise Video Animation highlighting the year’s key achievements, and an Improved Chart Generator that enables intuitive and dynamic data visualisation. Through these innovations, Sampath Bank reaffirms its commitment to transparency, accessibility, and meaningful stakeholder engagement, setting new benchmarks in digital corporate reporting.

Page 50

Page 191

Page 217

Page 317

Page 370

Page 529

The Compassion Code

Our Value Creating Business Model

Business Reports

Corporate Governance Reports

Risk Management Report

Financial Statements

Investor Relations

3

INTEGRATED ANNUAL REPORT

The Board of Directors is pleased to present Sampath Bank PLC’s 12th Integrated Annual Report for the financial year ended 31st December 2025. This Integrated Report provides a concise and balanced overview of how we directed the implementation of EvolveX, our refreshed 5-year strategy for the Bank to deliver enhanced value to stakeholders. The Report also provides information about our corporate governance and risk management practices while reaffirming our consistent commitment to sustainability across our value chain.

Scope and Boundary

GRI

2-2

WELCOME TO OUR 12TH

This Report covers the operations of Sampath Bank PLC. The narrative, which includes strategy, materiality, risk management, corporate governance and other non-financial information, pertains only to the Bank unless otherwise stated. However, financial information in the financial statements has been presented for both the Bank and the Group which comprises Sampath Bank PLC and its four subsidiaries. Reporting on the SLFRS Sustainability Standards S1 and S2 also cover the operations of the Sampath Bank Group.

Sampath Bank PLC is the largest entity within the Group accounting for 96% of assets as at 31st December 2025 and contributing 93% of both operating income and profit after tax for the year. The Bank operates primarily in Sri Lanka. The reporting boundary for financial and non-financial information disclosed in this Report is presented alongside.

Integrated Reporting Boundary

Financial Reporting and SLFRS Sustainability-related Financial Disclosure Boundary

Reporting boundary for non-financial information

Sampath Bank PLC

Sampath Securities (Pvt) Limited

(100%)

Siyapatha Finance PLC

(100%)

Sampath Centre Limited

(100%)

Sampath IT Solutions Limited

(100%)

Sampath Wealth Management Limited, a new subsidiary of the Bank, was incorporated on 6th January 2026.

Shareholders and Other Investors

Customers

Employees

Government and Regulators

Community

Suppliers and Service Providers

Sampath Bank PLC | Annual Report 2025

4

Reporting Period

The Bank adopts an annual reporting cycle for its financial and non-financial reporting. This Report covers the financial year from 1st January to 31st December 2025 and builds on its previous report for the financial year ended 31st December 2024. Material developments within its operating context and post balance sheet events up to the date of Board approval on 19th February 2026 have also been included in this Integrated Report.

GRI

2-3

Report Preparation

Information from multiple internal and external sources were considered during the preparation of this Integrated Report. This included internal data, interviews with the Bank’s Chairman, Managing Director/CEO and Corporate Management team as well as verified external sources. A dedicated internal team oversaw the preparation of this Integrated Report.

Changes to Reporting

No major changes to the Bank’s size, shareholding, structure or operations took place during the year under review. There were also no major restatements of financial or non-financial information disclosed in the previous Annual Report.

GRI

2-4,6

Aligning with the Requirements of Sri Lanka Sustainability Disclosure Standards, SLFRS S1 and S2

Complying with the requirements of SLFRS Sustainability Disclosure Standards, S1 and S2, the localised versions of ISSB’s IFRS Sustainability Disclosure Standards, S1 and S2 came into mandatory effect for the first 100 listed entities based on market capitalisation as of 1st January 2025 on the main board of the Colombo Stock Exchange, from 1st January 2025.

Accordingly, Sampath Bank strengthened its sustainability-related governance and processes as summarised below to align with the requirements of SLFRS Sustainability Disclosure Standards, S1 and S2 while applying the transitional relief provided by the standard for first time adopters.

Governance

» Established the Board Sustainability Committee and management-level ESG Committee to support

effective management of sustainability and Climate Related Risks and Opportunities (CRROs).

» Competency development to support effective integration of sustainability principles into strategy and business operations.

» Developed climate linked ESG KPIs for Key Management

Personnel and integrated to the Reward Management Policy.

Risk Management

» Systematic integration of CRROs into the Bank's

Integrated Risk Management Framework.

» In the process of developing a model to integrate ESG risks into

the Internal Capital Adequacy Assessment Process (ICAAP).

» Digitalised and strengthened an Environmental and Social Risk Management System (ESMS) to manage sustainability risks in lending.

» Developed a platform under the Sampath Document Approval System (SDAS) to facilitate the monthly submission of energy and water related data.

» Commenced the development of a sustainability dashboard to

monitor the Bank's sustainability performance on a monthly basis.

Strategy

» Identified the Bank's key CRROs.

» Developed strategies to manage the identified CRROs.

» Aligned its business operations with ISO 14001:2015 Environmental Management System (EMS) standard.

» Assessed the impact of CRROs in our business model and

value chain.

Metrics and Targets

» Established targets to expand the Bank's

renewable energy portfolio by 50% in 2026.

» Partnered with Partnership for Carbon Accounting Financials (PCAF) for the quantification of financed emissions.

» Increase solar power generation by installing roof-top solar panels in 5 branches.

» Established a Target Setting Process to determine targets.

Refer to SLFRS Sustainability-related Financial Disclosures on pages 70 to 100 for more detailed disclosures.

The Compassion Code

5

WELCOME TO OUR 12TH

INTEGRATED ANNUAL REPORT

The 2025 Annual Report aligns with the following regulatory and voluntary reporting standards.

Financial Reporting (Regulatory)

» Sri Lanka Accounting Standards issued by the Institute of Chartered Accountants of Sri Lanka

» Companies Act No. 07 of 2007 and its amendments

» Banking Act No. 30 of 1988 and its amendments

» Listing Rules of the Colombo Stock Exchange (CSE)

» Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995

Corporate Governance, Compliance and Risk Management Reporting (Regulatory)

» Listing Rule No. 9 of the Colombo Stock Exchange

» Banking Act Direction No. 05 of 2024 on Corporate Governance

for Licensed Banks in Sri Lanka

» Code of Best Practice on Corporate Governance issued by the

Institute of Chartered Accountants of Sri Lanka (2023)

» Banking Act Direction No. 01 of 2016 on Capital Requirements

under BASEL III and its amendments

» Banking Act No. 30 of 1988 and its amendments

» Companies Act No. 07 of 2007 and its amendments

Integrated Reporting (Voluntary)

» The International Integrated Reporting Framework

of the International Integrated Reporting Council (IIRC)

» "A Preparer's Guide to Integrated Reporting" issued by the Institute of Chartered Accountants of Sri Lanka

Sustainability Reporting

(Voluntary unless otherwise stated)

» SLFRS Sustainability Disclosure Standards - SLFRS S1 and S2 (Regulatory)

» United Nations (UN) Sustainable Development Goals

(SDGs)

» 10 principles of UN Global Compact

» Global Reporting Initiative (GRI) Standards issued by the Global Sustainability Standards Board (GSSB)

» Sustainability Accounting Standards for Commercial Banks issued by the Sustainability Accounting Standards Board (SASB) of the IFRS Foundation

» Guideline on Environmental, Social and Governance (ESG) reporting issued by the CSE

» IWA 48:2024 Framework for implementing Environmental, Social and Governance (ESG) principles

» National Green Reporting System of Sri Lanka issued by the Government of Sri Lanka

» Banking Act Direction No. 05 of 2022 on Sustainable

Finance Activities of Licensed Banks (Regulatory)

» ISO 14064-1:2018 Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions and removals

» ISO 14001:2015 Environmental Management

System

» GHG Protocol Corporate Accounting and Reporting Standard (Regulatory)

Our materiality determination process is anchored in a rigorous, comprehensive assessment framework. We develop a list of potential material topics considering insights from multiple sources including a review of the topics considered material last year, an analysis of our value chain,

an assessment of sustainability-related topics in internationally recognised standards and feedback gained from stakeholders through multiple engagement channels. We also conducted an extensive stakeholder survey including a broad range of stakeholders to validate

GRI 3-1

our potential material topics. We then ranked the list of potential material topics using a double materiality lens considering impact materiality and financial materiality to arrive at the Bank’s material topics for 2025. Refer to Materiality on pages 54 to 57 for more information.

Sampath Bank PLC | Annual Report 2025

6

Improvements to the Annual Report 2025

1

4

Digital Innovation

The Bank’s Digital version of the Annual Report has been significantly enhanced by incorporating features such as a single main page with key highlights, an AI avatar with

voice interaction, AI-powered PDF search, a chart generator, and a summarised video animation.

View the AI Powered Digital Version of this Annual Report Online

3

2

The Bank applies combined assurance to uphold the integrity of the information presented in this Integrated Annual Report. The Bank’s Management oversees the reporting process and reviews the financial and non-financial information presented in this Integrated Report, thereby providing internal assurance. Messrs Ernst & Young, Chartered Accountants provides external assurance on the Bank’s Financial Statements (pages

Financial Capital

Manufactured Capital

Intellectual Capital

Human Capital

(Pages 112 to 117)

(Pages 118 to 123) (Pages 124 to 130) (Pages 131 to 141)

Social and Relationship Capital

(Pages 142 to 168)

Natural Capital

(Pages 169 to 190)

Suppliers and Service Providers (Page 64)

Government and Regulators (Page 63)

(Page 62)

(Page 61)

(Page 60)

Community

Customers

Employees

Shareholders and Other Investors (Page 59)

STAKEHOLDERS

CAPITALS

How to Navigate the Report

366 to 368), Directors' Statement on Internal Control Over Financial Reporting (page 362), Sustainability Reporting (pages 561 and 562), Integrated

Reporting (pages 559 and 560) and SLFRS Sustainability Related Financial Reporting (pages 68 and 69). The Bank also obtained independent assurance from Sri Lanka Climate Fund on the Bank’s GHG Inventory Report 2025 to ensure the alignment with ISO 14064-1:2018

GRI

2-5

Standard Organisation Level for Quantification and Reporting of GHG Emissions and Removals (page 176). The Bank engaged SGS Lanka (Pvt) Limited to provide certification on our internal operations, including processes, procedures and environmental management practices, to confirm alignment with the ISO 14001:2015 EMS Standard (page 173).

The Compassion Code

Governance

(Pages 217 to 315)

Risk Management

(Pages 317 to 347)

Sustainability

(Page 39)

Technology

(Page 38)

People

(Page 37)

Business

(Pages 35 and 36)

STRATEGY

RISK MANAGEMENT AND GOVERNANCE

7

WELCOME TO OUR 12TH

INTEGRATED ANNUAL REPORT

This Integrated Annual Report includes forward-looking statements to provide insights into the Bank’s potential for value creation in the short-to-medium term. While these statements were considered reasonable at the time of publication, they remain subject to uncertainty as they relate to future events, outcomes and events that are beyond the control of the Bank. Therefore, users are advised to interpret forward-looking statements with caution. The Board and preparers of the Annual Report accept no liability for any reliance placed on forward-looking statements.

Sampath Bank PLC | Annual R epor t 2024

» Reported on the SASB Standard (Commercial Banks)

» Reported on SLFRS Sustainability Disclosure Standards, S1 and S2

» External Assurance Provided

» Enhanced Digital Version of the Annual Report

» Integrated Report

» In Accordance with the GRI Standards

» Enhanced TCFD Reporting

» Initiated Reporting on the SASB Standards

» External Assurance Provided

» AI Powered Digital Version of the Annual Report

2024

» Integrated Report

» In Accordance with the GRI Standards

2025

» Integrated Annual Report

» In Accordance with the GRI Standards

» External Assurance Provided

2023

ANNUAL REPORT 2022

» Integrated Report

2022 » In Accordance with the GRI Standards

» External Assurance Provided

» Key Highlights from the Integrated Annual Report are Available in Video form, Accessible on the Corporate Website

STRENGTH IN

MOTION

» Integrated Report

2017 - » GRI Standards - Comprehensive

2021 External Assurance Provided

» Integrated Report

» GRI G4 -

Comprehensive External Assurance Provided

2014 -

2016

» Stand-alone Report

» GRI G4

-Comprehensive External Assurance Provided

2013

» Incorporated in Annual Report

» GRI 3.1 Level B External Assurance Provided

2012

» Stand-alone Report

» GRI 3.1 Level B External Assurance Provided

2011

EVOLUTION OF OUR SUSTAINABILITY AND ESG REPORTING

The Bank’s unending commitment to reporting excellence has urged the Bank to progressively enhance the scope and scale of its reporting disclosures with each successive Annual Report. To that end, the Annual Report for financial year 2025 represents another important milestone in the Bank’s efforts to improve transparency and accessibility of information in line with globally accepted reporting best practices.

GRI

GRI

2-3

2-14

Board Responsibility Statement Feedback

Sampath Bank PLC’s Board of Directors is responsible for the integrity of the Integrated Annual Report. The Board confirms that the Integrated Annual Report for the financial year ended 31st December 2025 represents a balanced view of the Bank’s performance and addresses all material issues that are likely to impact the Bank’s ability to create value in the short term.

Sampath Bank PLC | Annual Report 2025

8

The Board welcomes stakeholder feedback on this Integrated Annual Report 2025 and requests readers to utilise the Feedback Form provided on pages 571 and 572 of this Report to share suggestions. Thank you for your valuable input.

WHO WE ARE

Sampath Bank at a Glance | 10 Performance Highlights | 13 Key Events 2025 | 16

Shaping the Way Sri Lankans Bank | 18

A VALUE FRAMEWORK

Our foundation is built on a culture that

transcends transactions, encompassing values of empathy,

integrity, and service. This framework is the code that defines who we are, powering innovation with

purpose and shaping the way Sri Lankans bank.

SAMPATH BANK AT A GLANCE

As a leading private bank in Sri Lanka, Sampath Bank continuously innovates to deliver financial solutions that respond to the evolving needs of its extensive base of corporate, small and medium scale enterprise and retail customers. By combining digital innovation with inclusive financial value propositions, we strive to expand opportunity and empower the aspirations of all Sri Lankans while contributing to the development of a stronger, more resilient national economy.

OUR PURPOSE

Empower dreams and enrich lives.

To be the leader in transforming lives by

OUR VALUES

GRI

2-1,6

» 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.

n

o

l

o

g

y

B

u

unlocking financial potential with innovation, integrity and empathy, while nurturing financial wellbeing, sustainable growth and economic prosperity.

» Uncompromising ethical and professional standards of behaviour.

OUR STRATEGY

s

i

n

e

s

s

We strive to deliver on our vision and create sustainable long-term value for all our stakeholders through our strategic priorities of Business, People, Technology and Sustainability.

o

p

l

e

T

e

c

h

P

e

Sustainability

Total assets

Rs 1,978 Bn

11%

2024: Rs 1,778 Bn

Impaired loans (Stage 3) ratio

3.31%

2024: 4.69%

FINANCIAL HIGHLIGHTS

Deposit base

Rs 1,647Bn

12%

2024: Rs 1,469 Bn

Total capital adequacy ratio

17.65%

Regulatory minimum requirement: 13.5%

Profit after tax

Rs 30.2 Bn

11%

2024: Rs 27.3 Bn

Liquidity coverage ratio - All currency

239.79%

Regulatory minimum requirement: 100%

Sampath Bank PLC | Annual Report 2025

10

GRI

Sampath API Platform

184

CDMs

Traditional and digital payment channels

Savings products for every life journey

Sampath Internet Payment Gateway

328

CRMs

PayEasy.lk

5+

Product Portfolio

25+

245

ATMs

Sampath Vishwa

Sampath WePay

Omni-Channel Island-Wide Service Delivery

229

Branches

15+

Tailored lending products for business and retail customers

19%

23%

12%

Our strategy is delivered by an engaged team of 4,917 employees

Customers transacted through digital channels in 2025

Transaction volumes on digital

channels in 2025

Our strategy is delivered through three business verticals which have been structured to serve the unique needs of specific customer segments

SME and Retail

» Lending

» Deposits

» Credit cards

» Private banking

» Remittances

» Life lead operations

» Transaction banking

Corporate

» Corporate credit

» Corporate finance

» International trade

» FCBU

Treasury

» Treasury bills and bonds

» Repo and reverse repo

» SLISBs

» FX spot, forward and Swap contracts

» US treasuries

(Sampath Vishwa and WePay)

Transaction values on digital channels in 2025

We consistently deliver value to our communities while preserving the environment

14,780 Beneficiaries

40 Tank restoration projects undertaken (to-date)

Rs 125 Mn (+108%) 124,119

Investment in CSR Beneficiaries from

initiatives in 2025 CSR initiatives

Rs 6,165 Mn (+328%)

Financing for renewable energy projects

1,635 (+97%)

Borrowers screened for environmental and social due diligence

The Compassion Code

11

SAMPATH BANK AT A GLANCE

GRI

201-1

Value Creation in 2025

Value Distribution in 2025

9.5

0.1

0.2

6.0

7.4

7.5

13.8

45.2

2025

Rs 219 Bn

2024

Rs 195 Bn

13.2

51.0

9.2

9.1

14.7

13.1

Depositors & Lenders Operating Costs Employees

Government of Sri Lanka Community

Providers of Capital Economic Value Retained

%

Non-financial Value Delivered to Key Stakeholders

Shareholders and Other Investors

Consistent commitment to sustainable business practices, strengthening business resilience and long term value creation.

Customers

Delivered tailored financial solutions that integrated customer needs with sustainability principles.

Employees

Invested in developing the skills and competencies of our team while creating opportunities for growth within an inclusive work environment.

Government and Regulators

Contributed to the integrity and stability of the financial system by complying with all regulatory requirements.

Community

Empowered and uplifted communities by facilitating access to finance and market linkages.

Suppliers and Service Providers

Delivered mutual value and promoted the adoption of sustainable business practices through supplier assessments and feedback.

Sampath Bank PLC | Annual Report 2025

12

PERFORMANCE HIGHLIGHTS

GRI

2-6

Financial Snapshot

Key Performance Indicators - Bank

The Compassion Code

13

PERFORMANCE HIGHLIGHTS

GRI

2-6

FINANCIAL CAPITAL

Operating Profit & Profit After Tax

Rs Bn

70

60

50

40

30

20

20.7

12.5

20.2

13.1

38.4

17.1

59.9

27.3

63.4

30.2

10

MANUFACTURED CAPITAL

Investment in PPE

Rs Mn

4,000

3,000

2,000

466

887

1,587

2,236

3,984

1,000

INTELLECTUAL CAPITAL

Brand Value

Rs Bn

30

20

24.3

24.9

25.7

24.8

10

0 2021 2022 2023 2024 2025

0 2021 2022 2023 2024 2025

0 2021 2022 2023 2025

Operating Profit Profit After Tax

17.93% (+19 bps)

Return on equity (after tax)

Rs 25.76 (+10.6%)

Earnings per share

Rs 10.30 (+10.2%)

Dividend per share

17.65%

(Minimum requirement: 13.5%)

Total capital adequacy ratio

239.79%

(Minimum requirement: 100%)

Liquidity coverage ratio (all currency)

Rs 1,224 Bn (+27%)

Gross loans and advances

3.31% (-29%)

Impaired loans (Stage 3) ratio

40

New CRMs installed replacing

ATMs and CDMs

7

Private Banking Units

established

79

Branches relocated and upgraded

Rs 2 Bn (+32%)

Invested in IT infrastructure

+19%

Increase in digital transaction values

(Vishwa and WePay)

+23%

Increase in digital transaction volumes

(Vishwa and WePay)

Note: Data not Published for 2024 by Brand Finance Source: https://www.brandirectory.com

9

New products and services introduced

4

International awards won

12

Local awards won

Rs 24.8 Bn

Brand value

Rs 960 Mn (+83%)

Invested in IT software

Sampath Bank PLC | Annual Report 2025

14

WHO WE ARE

LEADERSHIP INSIGHTS

PURPOSEFUL

STRATEGY

MANAGEMENT DISCUSSION

AND ANALYSIS

GOVERNANCE AND RISK MANAGEMENT

FINANCIAL INFORMATION

SUPPLEMENTARY

INFORMATION

GRI

2-6

HUMAN CAPITAL

SOCIAL AND RELATIONSHIP CAPITAL

NATURAL CAPITAL

Payments to Employees

Economic Value Distributed to the Community

Renewable Energy Projects Financed

Rs Mn 20,000

15,000

10,000

9,543

12,496

14,250

18,057

19,946

5,000

0 2021 2022 2023 2024 2025

Rs Mn

350

300

250

200

150

100

43

111

209

190

345

50

0 2021 2022 2023 2024 2025

Rs Bn 8

6

4

2

0

16

2023 2024 2025

No. 16

12

8

4

0

95.6%

Employee retention rate

86%

Employee satisfaction score (2024)

44.54% (+235 bps)

Female representation

Customers

Over 4 Mn

Customer base

98.3%

Customer complaints resolved

Business partners

Amount Financed Number of Projects (RHS)

1,635 (+97%)

Borrowers screened for environmental

and social due diligence

853,710 kWh (+28%)

Renewable energy generated through

branch solarisation

Rs 10.9 Bn (+82%)

Rs 206 Mn (+2%)

Investment in training and professional studies

73 (+62%)

Average training hours per employee

524

Correspondent banks

8

Fintechs

112

Exchange houses

739

Registered suppliers

Financing for electric and hybrid vehicles

31,823 kg (-15%)

of paper recycled

Rs 38 Mn (+242%)

Investment in environmental CSR initiatives

7

Employee well-being

programmes

4,917 (+11%)

Number of employees

Our communities

Rs 125 Mn (+108%)

Total investment in CSR initiatives

124,119 (+9%)

Beneficiaries from CSR initiatives

6,763 Metric tons (t) CO₂-e

Carbon footprint (Scope 1 and 2)

Sampath Bank head office and branch network are certified for ISO 14001:2015

Environmental Management System

The Compassion Code

15

KEY EVENTS 2025

GRI

2-6

PASSING OF THE BATON

Mr Sanjaya Gunawardana was appointed as the Managing Director/Chief Executive Officer with effect from 24th September 2025 as Mrs Ayodhya Iddawela Perera completed her term of office. Over 36 years of experience across key banking verticals including retail banking, trade finance, information technology, strategic planning and organisational development and skills honed at prestigious global institutions shape his leadership style as he steers the Bank into an era of people focused innovation and technological transformation.

Euromoney Recognises Sampath Bank as Sri Lanka’s Best Bank for ESG

Sampath Bank has been crowned as Sri Lanka’s Best Bank for ESG at the prestigious Euromoney Awards 2025.

Strong Deposit Growth

Total Deposits

Rs Bn 2,000

1,500

12%

Achievements in 2025 that affirmed excellence and leadership in our core business

Sampath Bank’s deposit portfolio recorded significant growth of 12% (Rs 178 Bn), reaching Rs 1,647 Bn as at year-end, reflecting the Bank’s sustained ability to attract and retain customer deposits across key market segments.

1,000

1,469

1,647

500

0 2024 2025

Innovation

Launch of Sampath Bank Green Fixed Deposit

This innovative product is a sustainable finance initiative aligned to the International Capital Market Association’s (ICMA) Green Bond Principles and Sri Lanka Green Finance Taxonomy.

Sampath Bank continues to innovate, strengthening its competitive edge with purposeful products that shape futures

Private Banking

The Private Banking Unit was launched on 25th July 2025, aimed at strengthening our share of wallet with high-net-worth clients seeking personalised and discreet financial services. The unit introduces sophisticated financial solutions including wealth planning, investment advisory, lending, confidentiality and world-class service.

Nurturing

A journey of sustainable growth is underpinned by institutional resilience, ensuring we walk with our stakeholders and a long-term view–nurturing shared prosperity

Sampath Bank PLC | Annual Report 2025

16

Supporting Communities Through Relief and Recovery

Sampath Bank provided essential medical supplies to the Sri Lanka Red Cross Society to assist families affected by the floods and landslides caused by the Ditwah Cyclone. Standing firmly with our communities during challenging times, the Bank extended its support to ensure urgent relief reached those most in need.

Further strengthening national recovery efforts, the Bank donated Rs 100 Mn to the “Rebuilding Sri Lanka” Fund, reaffirming its commitment to driving economic revival, supporting business restoration, and bringing renewed hope to affected communities across the country.

Conserving Our Northern Coral Reefs with IUCN

Sampath Bank PLC unveiled “Conservation of Coral Reefs Associated with the Erumaitivu-Kakkativu Seascape for Community and Ecosystem Resilience,” an initiative delivered in collaboration with the International Union for Conservation of Nature and Natural Resources (IUCN). The project spans 5 years with government and academia participating to restore life under water and livelihoods. The first tranche has been released after initial discussions and inspections and the project will be monitored closely to ensure a successful outcome.

WHO WE ARE

LEADERSHIP INSIGHTS

PURPOSEFUL STRATEGY

MANAGEMENT DISCUSSION AND ANALYSIS

GOVERNANCE AND RISK MANAGEMENT

FINANCIAL INFORMATION

SUPPLEMENTARY INFORMATION

GRI

2-6

Issuance of 100,000,000 BASEL

III compliant convertible debentures at an AER of 11.75%

p.a. for 5 years to strengthen our Tier II capital.

16.75

20

% 19.38 17.65

14.75

10

0 2024 2025

Total Tier I Capital Ratio Total Capital Ratio

Excellence in Corporate Reporting and Governance

Recognised for Outstanding Governance Disclosure: Sampath Bank PLC received the Overall Bronze Award at the SAARC Anniversary Awards for Corporate Governance Disclosures 2024, presented by the South Asian Federation of Accountants (SAFA). This regional honour underscores the Bank’s unwavering commitment to transparency, accountability, and exemplary reporting standards across South Asia.

Sustainability Reporting Leadership: At the ACCA Sri Lanka Sustainability Reporting Awards 2025, Sampath Bank was named Runner-up in the Banking Category, reaffirming its continued efforts to embed sustainability principles into its reporting practices.

Honoured for Excellence in Annual Reporting: The Bank’s Annual Report 2024 earned the Bronze Award in the Private Banking Sector at the TAGS Awards 2025, organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

“Sampath Select” – AI-Powered Instant Personal Loan Solution

The Bank introduced “Sampath Select”, an AI powered instant loan solution in 2025. This market-leading innovation is designed to reduce the complexity of obtaining a personal loan through a seamless and secure automated digital process made available to customers through a simple five-click journey on the Sampath Vishwa Mobile App. This product was developed using innovative AI and advanced analytics capabilities and offers responsible, intelligent approvals based on real-time analysis of customer data. This initiative demonstrates our focus on speed, convenience and responsible lending, leveraging AI and advanced analytics to deliver a superior customer experience.

Launch of Standardised Application Programming Interface (API) Platform

This reflects the Bank’s steadfast commitment to providing agile, technology-driven solutions for its expanding base of corporate and SME clients. API banking fundamentally transforms traditional banking by exposing core functions and data as web services accessible to third-party applications. This creates a more interconnected and flexible ecosystem that enhances convenience, encourages innovation and improves efficiency in delivering and consuming financial services.

Handing Over Madu Sampatha Floating Market to Community

Sampath Bank partnered with Research Triangle Institute (RTI) in 2024 to establish a floating market for plastic alternatives at the Madu River. This promotes sustainable livelihoods and environmentally friendly products in this mangrove ecosystem which is rich in biodiversity. The project involved capacity building and skills development and the established floating market was handed over to the Madu Sampatha Self-Entrepreneurship Association.

Transforming Weeds Into Wages Through Women-Led Eco Initiative in Karuwalagaswewa

A strategically positioned sales outlet was officially handed over to the Karuwalagaswewa Integrated Rural Welfare Society for a range of environmentally friendly products manufactured by the community using locally available materials, such as invasive weeds like “Ali Mana” and agricultural waste like banana shoots and elephant dung. The centre produces file covers, greeting cards, cake boxes, and items tailored to the tourism sector, boosting income.

The Compassion Code

17

SHAPING THE WAY SRI LANKANS BANK

Born from a vision of making banking more convenient, inclusive, and affordable, Sampath Bank has become a catalyst for change-leveraging technology to drive both scale and convenience. Coupled with the belief that the customer must be the focus for relevant innovation, we have earned the confidence of over 4 million customers who rely on us to safeguard their finances. We are deeply appreciative of their loyalty and continue to seek effective and innovative solutions to drive wealth creation.

1986

» Incorporated as Investment & Credit

Bank Ltd.

1987

» Commencement of business on 15th May 1987 with Mr N U Jayawardena as the first Chairman and Mr Janaka Silva as General Manager.

» Launch of cheque guarantee scheme.

» Introduced extended banking hours until 3.00 p.m. for the first time in Sri Lanka.

1988

» Sampath Bank became the first bank in Sri Lanka to operate a multi-point network of Automated Teller Machines (ATM), democratising convenient banking.

1989

» Launched Mastercard to Sri Lanka (under license from Mastercard International incorporated in USA).

» Pioneered launch of the Uni-Banking System in Sri Lanka.

» Pioneered launch of Sri Lanka’s

first-ever standalone ATM at Liberty Plaza shopping complex.

» Sampath Bank becomes one of the first local banks to join the SWIFT network.

1996

» Commenced operations of Sampath Centre Limited, a subsidiary of Sampath Bank that owns and operates the Head Office

building at Nawam Mawatha.

» Launched the TELEBANKING facility.

» Headquarters relocated to No. 110, Sir James Peiris Mawatha, Colombo 02.

» Launched the Debit Card in association with CIRRUS and MAESTRO, signifying another first in South Asia.

2000

» Launched “Sampathnet” internet banking facility (later rebranded as ‘Sampath Vishwa’).

» Pioneered launch of “Call Bank”, mobile banking service in partnership with Dialog GSM.

2001

» Commenced operations

of SC Securities (Pvt) Limited [rebranded as ‘Sampath Securities (Pvt) Limited’ in 2025] a subsidiary of Sampath Bank.

» The first Sri Lankan organisation to achieve the “Quality Approved Status” of best practice, awarded by the Chartered Institute of Management Accountants.

2002

» Introduced Visa Platinum Credit Cards to Sri Lanka.

2003

» Sampath Bank footprint expands with 10 new branches opened during the year.

» First bank in Sri Lanka to introduce “One day clearing”.

2004

» Pioneered launch of Sri Lanka’s first ever Cheque Imaging & Truncating (CIT) site.

2005

» Commenced operations of Sampath Leasing & Factoring Limited (later rebranded as ‘Siyapatha Finance PLC’), a fully-owned subsidiary of Sampath Bank.

2006

» Commenced operations of Sampath Information Technology Solutions Limited, a fully-owned subsidiary of Sampath Bank.

» Sampath Bank footprint grows further with 13 branches (3 Branches and 10 Personal Banking Centres) opened.

» ATM network reaches 150 machines across the island.

» 100th Branch opened in Kandy.

» Launch of VISA Mini Debit Card, a first in South Asia.

18

2009

» Sampath Bank becomes the third largest private sector bank in Sri Lanka in terms of total assets.

2011

» Opened 10 branches across the island in a single day - a first in the local banking industry.

» Introduced the online real time Cheque

Deposit ATMs - a first in South Asia.

» Powered the nation’s largest ATM network - Access enabled to nearly 1,500 ATMs island-wide.

2012

» Sampath Bank celebrates its Silver Jubilee, marking 25 years of service to the nation.

2013

» Pioneered launch of “Cardless Cash ATM” technology in Sri Lanka.

» Pioneered launch of “Visa payWave” enabled cards in Sri Lanka.

2017

» Launch of the drive-thru ATM.

2018

» Pioneered launch of Slip-less Banking in Sri Lanka.

2020

» Sampath Bank’s asset base crosses the One Trillion Rupees mark.

2021

» Pioneered launch of “Touchless Cash Withdrawals” in Sri Lanka.

2022

» Launch of the “eZ Banking” service in partnership with Dialog Axiata PLC, to promote financial inclusion among unbanked and underbanked rural populations.

» First local bank to partner with Paycorp International (Pvt) Limited to facilitate real-time payment and settlement using any LankaQR enabled apps and digital wallets.

» First Sri Lankan bank to introduce

e-commerce facilitation services with direct connectivity to the UnionPay International payment gateway, payment processing solution, and payment aggregator services.

» Industry first to simplify account opening via QR through an interface enabling remote Accounts Opening.

» Sampath Bank becomes one of the first local banks to receive approval by the State Bank of India to facilitate trade with India in INR.

» Launch of the “Sampath Export Partners” initiative to support export oriented SMEs and startups.

» Establishment of special counters for USA, Canada, UK, Germany, Japan, China and India at the Bank’s International Trade desk to assist in handling trade documentation.

» Sampath Vishwa Retail introduces a new self-management feature to enable customers to uplift FDs and effect full/ partial settlement of loans.

» Sampath Vishwa Retail reached a significant milestone by recording One Million customers.

» Sampath Bank reached the milestone of One Trillion Rupee Deposits.

» Completion of the Payment Card Industry Data Security Standard (PCI DSS) certification.

For 39 years, Sampath Bank has led the way in financial inclusion and customer centricity as we literally put banking at the fingertips of Sri Lankans. Our efforts have been recognised by a loyal customer base, over

1.9 Trillion Rupees of assets in just

39 years and recognition as a Domestic Systemically Important Bank (D-SIB) – the youngest bank in this classification. We remain committed to nurturing our legacy of inclusive innovation as we shape the future of banking for Sri Lankans.

2024

» Innovation of Sampath Pay Band wearable device for easy payments.

» Issued Sampath Visa Infinite metal credit card for premier cardholders, enhancing customer privacy.

» Issued Sampath Visa Purchasing Card for corporate clients.

» Restore 9 tanks under the “Wewata Jeewayak” programme signifying the highest ever undertaking during a year marking 25th tank restoration.

» Pioneered the introduction of the MiniPOS to facilitate SME access to the credit card payment system.

» Sampath Bank proudly unveiled its new revolutionary mobile application, Sampath Vishwa Retail.

The Compassion Code 19

19

LEADERSHIP INSIGHTS

Chairman’s Message | 22 Managing Director/

Chief Executive Officer’s Review | 26

A VISIONARY BLUEPRINT

At Sampath Bank, leadership is guided by an innate sense of vision and responsibility. Through foresight and purpose,

The Compassion Code 21

we engineer a blueprint that unites compassion with innovation, shaping a future of enduring progress.

CHAIRMAN’S MESSAGE

HARSHA AMARASEKERA

Chairman

22

GRI

2-22

2025 will undoubtedly be remembered as a year of exceptional significance in our growth journey and a defining chapter in the Bank’s annals.

Dear Valued Stakeholders

Sampath Bank PLC recorded a Profit after Tax of Rs 30.2 Bn for the financial year 2025, the highest in its history, reflecting the successful pursuit of an ambitious growth strategy. Amid heightened global uncertainty and a fragile but steady recovery in the local economy, the Bank achieved 11% growth in both earnings and total assets, underscoring the strength and effectiveness of our strategy. Importantly, Sampath Bank was designated as a Domestic Systemically Important Bank (D-SIB) thereby affirming the Bank’s critical role in safeguarding the country’s financial stability. We also laid the foundation for a significant strategic shift aimed at positioning the Bank to capture new opportunities and strengthen resilience in the years ahead. Together with several other notable accomplishments, 2025 will undoubtedly be remembered as a year of exceptional significance in our growth journey and as a defining chapter in the Bank’s annals.

Sri Lanka maintained its positive growth trend witnessed in the latter half of 2024 to record an estimated 3.5% GDP growth in 2025. This performance was underpinned by contributions from the Agriculture, Industry and Services sectors despite the significant challenges presented by geoeconomic conditions, including disruptions to global supply chains. Inflation remained within the target range thereby supporting lower interest rates and contributed to overall financial stability. Growth in tourism and remittances buoyed foreign exchange reserves complemented by the fourth

tranche of the IMF Extended Fund Facility Programme. Positive reviews of Sri Lanka’s performance on the targets agreed with the IMF have been encouraging, helping to restore investor confidence and stimulate private sector credit growth.

The impact of Cyclone Ditwah served as a stark reminder of the devastation and tragedy that often follow extreme weather events. The Board joins me in offering our deepest condolences to those who lost families, homes and livelihoods. The damage to the country’s infrastructure is also significant and initial assessments draw attention to potential adverse impacts on energy and irrigation related infrastructure, and disruptions to supply chains. The Bank provided moratoria and targeted support to customers affected by the cyclone and we will continue our support in the year ahead. We are committed to supporting the country’s efforts to rebuild stronger, and welcome the progressive relief measures proposed by the Government.

The Banking sector continued to maintain strong rupee and dollar liquidity during the financial year under review while prudently recalibrating operations to accommodate the increased demand for dollars arising from the resumption of vehicle imports. Overall, banking sector capital buffers remained strong, with the Total Capital Adequacy Ratio improving to 18.6% in Q3 2025, from 18.3% a year earlier. Banking sector asset quality indicators also improved, with the Impaired loans (Stage 3) ratio declining to 9.8% in 2025, supported by better borrower repayment capacity and enhanced sector-wide risk management.

During the year 2025, banking sector profitability rose sharply, supported by strong growth in fee and commission income from higher trade volumes and greater use of digital platforms, which offset the impact of narrowing interest spreads. Encouragingly, the cost efficiency ratio improved significantly reflecting the increased digitalisation of the sector. Liquidity normalised alongside improved credit growth. Assets and funding structures reflect the increase in loan portfolios funded primarily through a reduction in investments and increase in deposits.

The Bank continued to build on the strategic course charted in 2024, further strengthening its value proposition for High Net Worth, Corporate, SME, and Retail customers. Supported by an island wide branch network, a highly motivated team, and robust digital infrastructure, we enhanced our capabilities through targeted investments aimed at delivering meaningful change. These efforts significantly expanded our product and service offering while deepening relationships with our loyal and growing customer base.

The Bank recorded a Profit after Tax of Rs 30.2 Bn for the year ended 31st December 2025, an increase of 11% over 2024. The Return on Equity is 17.93%, marginally higher than the previous year, despite declining interest rates. The returns compare favourably with the interest rate of the 364-day treasury bill which declined from 8.96% at the end of 2024 to 8.19% by the close of 2025. Profit growth was supported by growth in fee-based income, exchange gains and net

Total Assets

ASSETS

Rs 1,978 Bn

11%

2024: Rs 1,778 Bn

Rs 25.76

11%

2024: Rs 23.30

Earnings per Share

Net Asset Value per Share

Rs 152.53

7%

2024: Rs 142.01

The Compassion Code

23

CHAIRMAN’S MESSAGE

gains on derecognition of financial assets but was moderated by comparatively lower impairment reversals, lower net interest income and higher operating costs as we expanded the team and invested in nurturing critical capital targeting the execution of new strategies. The reduction in impairment reversals for the year 2025 is primarily due to the exceptional one off gain recorded in 2024 following the restructuring of Sri Lanka International Sovereign Bonds. Excluding this non recurring item, impairments reflect a substantial reversal, demonstrating the continued improvement in the quality and resilience of the loan portfolio.

Sustained deposit mobilisation continued to underpin the expansion of the Balance Sheet during the year. Total assets growth of 11% to Rs 1.98 Tn at the close of the year, was funded largely by strong deposit growth. Credit expansion also gained momentum, supported by improving business sentiment and a cautious resurgence in borrowing activity, as businesses continued to assess global macroeconomic conditions and evolving supply chain dynamics. Consequently, the Bank’s gross loans and advances portfolio recorded a growth of 27%, reaching Rs 1,224 Bn by year end. The Bank maintained robust capital buffers, reporting a Total Capital Ratio of 17.65% and a Tier 1 Capital Ratio of 14.75% as at end December 2025, comfortably above the elevated regulatory requirement as a

shareholder approval and requisite regulatory clearances. The announcement further indicated that the initial issuance is expected to comprise half of the total amount, with proposed tenures of 5 and 7 years. This capital augmentation initiative is expected to further reinforce the Bank’s Total Capital Adequacy Ratio as it transitions into its next phase of growth as a D-SIB, strengthening its resilience through additional capital buffers.

The share price increased by 23.9% from Rs 118.25 at the beginning of the year to Rs 146.50 at the end. It is noteworthy that the share price has increased further to Rs 162.25 as at the date of this report, 19th February 2026. Market capitalisation has increased to Rs 171,801 Mn as at the end of the year, with the Bank ranking 11th on the Colombo Stock Exchange accounting for 2.1% of total market capitalisation. I am pleased to report that Sampath Bank has proposed a final dividend of Rs 10.30 per share representing a dividend payout ratio of 39.98%. Net asset value per share increased by 7.4% to Rs 152.53 reflecting the enhanced value to shareholders. With the share price below the book value and a low price-to-earnings ratio, Sampath Bank remains an attractive investment at the current valuations.

Value to Shareholders

Rs %

it. Effective oversight is further strengthened through twelve Board Sub Committees, each mandated to oversee critical regulatory, strategic, and operational areas. The presence of a Senior Independent Director ensures balanced participation across the Board and provides an additional channel for counsel on matters relating to corporate governance.

During the year, the Board Nominations and Governance Committee oversaw the leadership transition arising from the retirement of Mrs Ayodhya Iddawela Perera. Following a comprehensive evaluation process, Mr Sanjaya Gunawardana was appointed as the new Managing Director/Chief Executive Officer, ensuring continuity of leadership and alignment with the Bank’s succession planning frameworks.

The Board Sustainability Committee, established in 2024, carried out a clear mandate to ensure that the Bank’s sustainability reporting conforms with SLFRS S1 and S2 requirements, embedding the same level of discipline and rigour applied to financial reporting. The Committee, and subsequently the full Board, received periodic updates and engaged in extensive discussions relating to the Bank’s sustainability framework, strategy, and risk management practices.

The Board Integrated Risk Management Committee heightened its vigilance during the year in response to pronounced shifts

D-SIB. Enhanced credit risk management practices contributed to a reduction in Stage 2 and Stage 3 exposures, despite the adverse impacts stemming from Cyclone Ditwah. Fitch Ratings Lanka

150

120

90

25

17.74 17.93 20

11.05 10.95 12.65 15

in the global risk environment. The Board also reviewed and noted the annual work plans of all Sub Committees, ensuring that the Bank’s strategic execution remains aligned with approved priorities while

affirmed the Bank’s National Long Term Rating at AA- (lka) with a Stable Outlook in September 2025, reflecting the Bank’s

60

30

10 meeting all regulatory obligations.

52.10

4.25

34.20

4.60

70.50

5.85

118.25

9.35

146.50

10.30

5 SUSTAINABILITY

strong credit profile and resilient operating fundamentals.

In alignment with its long term capital management strategy, the Bank announced to the Colombo Stock Exchange its intention to issue up to 200 million Basel III compliant, Tier 2 Listed, Rated, Unsecured, Subordinated, Redeemable Debentures and/or Green and/or Sustainability Bonds with a Non Viability Conversion feature, each with a par value of Rs 100, to raise up to Rs 20 Bn through one or more tranches over a two year period, subject to

0 2021 2022 2023 2024 2025 0

Closing Share Price (as at 31st December) Dividend per Share ROE (After Tax) (RHS)

The Board continues to set a strong tone at the top, supported by a highly skilled and experienced team of Directors who bring deep expertise across diverse disciplines and who exercise sound, independent judgement in the stewardship of the Bank. The Board’s collective capabilities enable robust and informed deliberation on all matters brought before

Sampath Bank’s proud legacy of financial inclusion and sustainability continues to be a cornerstone of our growth story. Voluntary adoption of sustainability reporting using the GRI Standards

15 years ago reflects the Bank’s commitment to a holistic approach and the transition to SLFRS S1 and S2 further broadens this agenda. Additionally, the Central Bank of Sri Lanka launched its Sustainable Finance Roadmap 2.0 in 2025, aligning the financial sector with the country’s climate initiatives and strengthening the financial sector against climate-related risks.

24

Inauguration ceremony of Devagiriya Tank restoration under the "Wewata Jeewayak" programme

data analytics will increasingly shape customer value propositions, enabling the Bank to deliver personalised solutions and innovative digital products—exemplified by the launch of the 10 second personal loan in 2025, the first of its kind in the Sri Lankan banking industry.

Sustainability considerations will underpin core aspects of the Bank’s operating model, influencing strategic decision making, product development, risk management frameworks, and stakeholder engagement.

The Bank continued to advance its flagship “Wewata Jeewayak” initiative, which focuses on the restoration of tanks forming part of Sri Lanka’s ancient irrigation network—an essential source of water for agriculture in the dry zone. Over the years, the scope of the programme has expanded to encompass capacity building in modern agricultural practices and financial literacy, empowering farming communities to enhance productivity and improve long term economic resilience. During the year under review, the Bank commenced the highest number of restoration projects in its history, marking a significant milestone in the evolution of the initiative. Coastal conservation efforts, specifically mangrove and coral restoration and turtle conservation continued as long term environmental programmes implemented in partnership with local communities and technical experts. Building on the success of earlier phases, these projects were extended further to restore marine ecosystems and enhance climate resilience in vulnerable coastal regions.

In addition, the Bank conceptualised and supported the development of the Madu River Floating Market, a sustainability driven initiative aimed at promoting sustainable livelihoods through responsible tourism. The project combines environmental stewardship with community centered income generation, reinforcing the Bank’s commitment to inclusive and sustainable economic development.

Measuring and managing the Bank’s carbon footprint remains a strategic priority, with increasing emphasis on assessing emissions arising from financed activities. During the year, the ESMS framework was expanded to cover all lending facilities other than schematised products, forming the foundation for the Bank’s transition toward measuring portfolio level financed emissions in line with emerging global standards.

In a further step toward promoting sustainable finance, the Bank launched Green Deposit Scheme, creating a dedicated pool of funding exclusively for green initiatives that support the transition to a low carbon economy. This initiative reinforces the Bank’s commitment to integrating climate considerations into its financing decisions while enabling customers to contribute to environmentally sustainable outcomes.

The outlook for global growth remains cautiously optimistic, with the International Monetary Fund projecting a rate of 3.3% in its January 2026 update, despite the volatility reflected in global news flows. Sri Lanka’s economic trajectory is also expected to remain broadly on course, although the adverse impact of Cyclone Ditwah may moderate short term recovery momentum. The financial sector is projected to experience measured growth, supported by improving investor sentiment. The continuation of the IMF’s Extended Fund Facility programme—critical for ongoing recovery efforts—will play an essential role in maintaining macroeconomic stability, particularly as the country undertakes reconstruction of infrastructure damaged by the cyclone. The IMF review currently underway remains a key determinant of the forward outlook. Regulatory developments are likewise expected to enhance the resilience of the financial sector amid heightened global uncertainty.

Against this backdrop, Sampath Bank will continue to execute its strategic agenda, scaling digitalised solutions tailored to the needs of its priority customer segments. Customer centricity will remain a defining pillar of delivery, with specially trained personnel deployed at strategic touchpoints to address the diverse and evolving needs of our clientele. Advanced

The Compassion Code

As we navigate continued uncertainty, the Bank remains committed to driving responsible growth, strengthening organisational resilience, and delivering long term value for all stakeholders.

The Sampath Bank Team has delivered a commendable performance; the Board joins me in thanking all members of this dedicated team for their efforts. We thank Mrs Ayodhya Iddawela Perera, the first female Managing Director of the Bank, who retired after 36 years of loyal service. Mrs Perera made a significant contribution to the Bank during her tenure as the Managing Director. We also welcome Mr Sanjaya Gunawardana as the Managing Director/Chief Executive Officer and are confident that he will be able to steer the Bank along the strategic roadmap that has now been identified. We extend sincere thanks to our customers and business partners for their valued patronage and count on their continued support in the years ahead. I am grateful for the advice and guidance offered by officials from the Central Bank of Sri Lanka. I am particularly grateful and want to acknowledge the continued diligence, discussion, and counsel from my fellow Board members who have all devoted a significant amount of time to the business of the Bank. In closing, I wish to reaffirm that the Bank remains committed to delivering long term value to our shareholders and stakeholders alike.

HARSHA AMARASEKERA

Chairman

19th February 2026

Colombo, Sri Lanka

The Compassion Code 25

25

MANAGING DIRECTOR/

CHIEF EXECUTIVE OFFICER’S REVIEW

SANJAYA GUNAWARDANA

Managing Director/Chief Executive Officer

26

GRI

2-6

Our winning strategy, which delivered resilient results in 2025, is anchored on Customer Centricity, Operational Excellence, Digital Leadership, and Sustainable Growth.

Dear Valued Stakeholders

Sampath Bank PLC recorded earnings growth of 11% to deliver Profit After Tax of Rs 30.2 Bn for the financial year ended 31st December 2025. This was supported by growth in Total Assets of 11%, reaching Rs 1,978 Bn as at year-end. The year also saw Sampath Bank designated as a Domestic Systemically Important Bank (D-SIB) affirming our relevance to the country’s economy while also underscoring prudential and regulatory obligations to our stakeholders. Having taken on the privilege of leading Sampath Bank since September 2025, I am mindful of our legacy as the catalyst for the digital transformation of the industry with a vision to make banking convenient and affordable at scale. As we go through our digital transformation, we draw inspiration from our roots to deliver that promise for a new era of banking that links Sri Lankans to global opportunities and supply chains.

We moved into 2025 with optimism, buoyed by positive GDP growth across industry, services and agriculture. Although the World Bank has estimated GDP growth for 2025 at 3.5%, a moderation from the 5% growth achieved in 2024, we estimate growth to be between 4% - 5% beating expectations. Increased merchandise exports and imports supported portfolio growth and trade finance growth. Removal of vehicle import restrictions in February 2025

boosted imports, becoming the 4th largest category of imports in 2025. A pro-growth budget introduced in February 2025, coupled with relief measures for vulnerable groups, supported domestic demand. Fiscal policy remained tight, while monetary policy was accommodative, maintaining low interest rates as inflation stayed below target levels. The exchange rate was largely stable but faced pressure from a widening trade deficit following the resumption of vehicle imports. Tourism and remittances continued to bolster foreign exchange inflows, improving consumer confidence and aiding construction sector revival. Overall, while growth persisted, it was tempered by global trade tensions, tariff escalations, and structural impediments, positioning 2025 as a year of consolidation rather than rapid expansion. The uptick in tourist arrivals by 15% to 2.4 Mn supported recovery of this capital-intensive industry although the increase in earnings from tourism recorded only low single digit growth. Worker remittance flows increased by 22.8% driving transaction volumes and values.

It is noteworthy that GDP growth was achieved despite significant geopolitical and geoeconomic shocks that are disrupting global trade flows and institutions, affecting every economy while increasing uncertainties. Cyclone Ditwah highlighted the country’s climate vulnerabilities as well as the need for

urgent climate action and disaster readiness. Overall, the global events and extreme weather in 2025 underscored the need for resilience through comprehensive risk management frameworks and sound capital management including sufficient capital buffers.

Industry Review

The country’s financial sector remained resilient as inflation stabilised and policy interest rates edged down by 25 basis points during the year. This provided a more predictable platform for strategic investment and credit expansion. While challenges such as currency volatility and trade uncertainties persisted, these were met with disciplined risk management and agile financial solutions. The overall industry trend continued towards greater financial deepening, digitalisation, and enhanced regulatory robustness.

We welcome the regulatory developments aimed at strengthening digital payment infrastructures and fostering responsible innovation, viewing them not as constraints, but as essential frameworks that build systemic trust and create a level playing field for sustainable growth.

We capitalised on these conditions, translating macroeconomic stabilisation into tangible growth by prudently expanding our lending portfolio, deepening our deposit base, and investing in the sectors most poised to drive Sri Lanka’s recovery and future prosperity.

Total Operating Income

INCOME

Rs 109.5 Bn

25.1%

2024: Rs 87.5 Bn

Net Loans & Advances

Rs 1,128 Bn

31.1%

2024: Rs 860 Bn

Total Capital Adequacy Ratio

17.65%

Minimum regulatory requirement: 13.5%

The Compassion Code

27

MANAGING DIRECTOR/

CHIEF EXECUTIVE OFFICER’S REVIEW

Our optimism is rooted in this demonstrated ability to grow in concert with—and in support of—the nation’s evolving economic landscape.

Our intention is to be the partner of choice across the entire economy. These partnerships are now becoming deeper and more supportive, powered by our investment in Advanced Data Analytics, which enables the Bank to offer targeted solutions for key customer segments. For our retail customers, these analytics enable hyper-personalised offerings, from tailored lending plans to pre-approved credit, enhancing financial wellness. For our SMEs, we leverage insights to provide not just capital, but timely, data-driven advice on cash flow management and market opportunities, turning banking into a strategic advantage. For our corporate clients, analytics streamline and expedite service delivery, from faster credit decisions to sophisticated, treasury

alternative data to assess creditworthiness beyond traditional metrics. This allows us to reach more first-time entrepreneurs, rural businesses, and individuals, ensuring that growth is not just facilitated, but is also equitable and far-reaching.

Our winning strategy, which delivered resilient results in 2025, is anchored on four enduring strategic pillars: Customer Centricity, Operational Excellence, Digital Leadership, and Sustainable Growth. This framework remains our guiding compass for 2026 and beyond. A critical, cross-cutting enabler of all these pillars is our strategic investment in Advanced Data Analytics, which we have formally elevated as a core strategic capability.

This analytics-driven approach powers our strategy. It deepens Customer Centricity by enabling hyper-personalisation and predictive service. It drives Operational Excellence through

accounted for PAT of Rs 30.2 Bn, reflecting year-on-year growth of 11%. This was driven by a commendable 21% increase in net fee and commission income, an exchange gain of Rs 5.3 Bn compared to a loss of Rs 4.2 Bn in 2024, and a net gain on derecognition of financial assets amounting to Rs 4.0 Bn. These cushioned the impacts of narrowing Net Interest Margins (NIMs) as the Average Weighted Prime Lending Rate (AWPLR) edged lower and yields from government securities decreased. Operating expenses increased by 19% to Rs 46.8 Bn, primarily due to expenses associated with the alignment of new strategies. Return on Equity (ROE) and Return on Assets (ROA) stood at 17.93% and 2.60% in 2025, compared

to 17.74% and 2.84% recorded in 2024, respectively.

Profit After Tax

Rs Bn

40

and trade solutions that improve

operational efficiency.

Importantly, our insights inspired relevant innovation. Retail customers benefited from zero equity housing loans in partnership with selected real estate

intelligent automation and risk foresight.

20

10

It is the cornerstone of our Digital 30

Leadership, creating smarter platforms and products. And it underpins Sustainable Growth by allowing for portfolio steering and impact measurement.

11%

developers supporting individuals to ownership of their own home. Launched in 2025, “Sampath Select” represents a pioneering step in digital lending. This AI-powered instant personal loan provides customers with a seamless and secure application experience, enabling completion in just five clicks via the Sampath Vishwa Mobile App. High net worth customers benefited from enhanced features on digital platforms providing them with enhanced experience. SME customers benefited from increased support through an enlarged and trained team of relationship managers as well as enhanced features via digital platforms. The API Banking platform enabled corporate customers to seamlessly integrate their systems with the Bank, facilitating streamlined transactions across the supply chain.

Critically, this technological advancement directly fuels our mission of financial inclusion and access. By building sophisticated digital profiles, we can responsibly extend services to segments previously deemed underserved, using

Sampath Bank PLC | Annual Report 2025

28

Executing this strategy has required deliberate and significant upfront investment. We have consciously accelerated our expenditure in talent development—attracting and upskilling data scientists and digital experts—and in foundational IT infrastructure, including our new data lake and core banking system. These essential investments have, in the short term, exerted upward pressure on our cost-to-income ratio. We view this not as a cost, but as a strategic capital allocation. These investments are building scalable, intelligent, and efficient platforms that will generate superior returns, enhance customer lifetime value, and drive significant operational leverage in the coming years, ultimately bringing our cost-to-income ratio to a sustainably lower and more competitive level.

The Group delivered increased value to shareholders, recording Profit after Tax (PAT) of Rs 32.6 Bn for the year ended 31st December 2025, a growth of 13% over the previous year. The Bank

0 2021 2022 2023 2024 2025

12.46

13.13

17.14

27.32

30.21

Importantly, the Bank’s credit rating was revised upwards from ‘A(lka) Stable’ to ‘AA-(lka) Stable’ as Fitch revised the country rating from CCC- to CCC+ affirming the stability of the Bank. The Bank’s Common Equity Tier 1 (CET1), Total Tier 1, and Total Capital ratios stood at 14.75%, 14.75%, and 17.65%,

respectively. These ratios remained well above the regulatory requirements, even with the additional 1% capital buffer across all tiers following Sampath Bank’s designation as a D-SIB in April 2025. Prudent liquidity levels were sustained, with the All-Currency Liquidity Coverage Ratio at 239.79% and the Net Stable Funding Ratio at 173.00%, comfortably exceeding regulatory requirements.

The Sampath Group’s Total Assets increased by 12% to Rs 2.06 Tn with the Bank accounting for 96% of the Group’s Total Assets. Total assets of the Bank recorded growth of 11% to Rs 1.98 Tn driven by expansion of the Bank’s gross loan portfolio by 27% to Rs 1,224 Bn, surpassing the Rs 1 Tn milestone in 2025