Strong Loan Momentum, Buffers Built: Earnings Growth Resumes in 2027E 📈 Strong 2Q Earnings PATMI rose 65% YoY to LKR 11.0bn (EPS: LKR 9.41), supported by 18% YoY NII growth to LKR 24.6bn and 23% growth in net fees. Impairment charges fell 65% YoY after provisions were front-loaded in 1Q. 💳 Resilient Credit Demand Gross loans grew 19% YTD to LKR 1.54tn. We expect 26.5% credit growth in 2026E, moderating to 12–13% in 2027–28E, with NIM widening towards ~4.4% as rate cuts ease funding costs from 2027E. 🛡️ Buffers Built Ahead of the Cycle Gross Stage 3 ratio improved to 6.54%, well below the sector’s 9.1%, with coverage at 65.6% and a CET1 ratio of 13.4%. 📊 Earnings Growth Resumes We forecast PATMI of LKR 40.3bn in 2027E (+17%) and LKR 47.8bn in 2028E (+19%), a 14% CAGR over 2025–2028E. 🎯 Valuation & Recommendation: SAMP.N TP (2027E): LKR 191.00 (+35.9%) | BUY ⚠️ Risks: (1) Prolonged Middle East conflict (2) Rising credit costs (3) Weaker loan growth (4) NIM compression