Seylan Bank ups 1Q after tax profit by 27% to Rs. 651 m

Thursday, 14 May 2015 02:50 - - {{hitsCtrl.values.hits}}

Seylan Bank has recorded a strong quarterly performance with profits before income tax reaching Rs. 968 million, a 21% increase for the three months ended 31 March 2015.

Profits after tax recorded a growth of 27% to reach Rs. 651 million compared to the Rs. 514 million reported in the corresponding period in 2014.

In a statement the bank said despite industry-wide pressure on interest margins and growth, Net Interest Income increased by 20% to Rs. 2.80 billion for the three months ended 31 March 2015.

Net fee and commission income increased by 9% from Rs. 515 million to Rs. 562 million during Q-1 2015, showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years.

The bank, based on its four-year Strategic Plan (2012-2016), has focused significantly on areas which include advance/deposit growth, branch expansion, customer service improvement, staff development, npa reduction, cost control, new product development, it infrastructure, shareholder value, etc. The Strategic Plan also earmarks the opening of 100 libraries in underprivileged schools. Fifty-seven such school libraries have been opened by the bank since 2013.

The Net Advance portfolio of the bank grew from Rs. 154.9 billion to Rs. 155.2 billion during Q-1, while its Deposit Base marginally reduced from Rs. 185.9 billion to Rs. 185 billion during the three months under review.

As at 31 March 2015, the bank’s network comprised 157 branches, 178 ATMs and 93 Student Savings Centres.

The bank’s total Capital Adequacy ratio stands at 13.94% at the end of Q-1 2015, well above the regulatory requirements. In October 2014, Fitch affirmed the bank’s rating at ‘A – lka’ with a stable outlook.

As a result of the performance, Earnings per Share were at Rs. 1.89 for Q-1 2015, while Return (Profit before Tax) on Assets and Return on Equity stood at to 1.55% and 11.03% respectively. The bank’s Net Asset Value per share as at 31 March 2015 was Rs. 67.33 (Group Rs. 70.81).