Seylan Bank ups pre-tax profit by 9% to Rs. 798 m

Friday, 2 May 2014 00:13 - - {{hitsCtrl.values.hits}}

Seylan Bank recorded a strong quarterly performance with profits before income tax reaching Rs. 798 Million, a 9% increase for the three months ended 31 March 2014. Profits after tax reached Rs. 514 million compared to the Rs. 505 million reported in the corresponding period in 2013. Despite slower than expected credit growth and industry wide pressure on interest margins, net interest income increased by 13.7% to Rs. 2.45 billion for the three months ended 31 March 2014. Net fee and commission income increased by 11.67% from Rs. 461 million to Rs. 515 million during Q1 2014, showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years. The bank also successfully concluded a review and update of its Strategic Plan in the latter part of 2013, which enable the extension of the bank’s Strategic Plan to 2016. The areas of focus 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 under privileged schools over a period of four years; 26 such school libraries have been opened by the bank since 2013. The bank grew its deposits base from Rs. 167.4 billion to Rs. 170.5 billion during Q1, while its net advances portfolio marginally reduced from Rs. 136.5 billion to Rs. 131.8 billion during the three months under review. During Q-1 2014, the bank fully refurbished seven branches to enhance customer experience. As at 31 March 2014, the bank network comprised of 151 branches, 160 ATMs and 90 Student Savings Centres. The bank’s total capital adequacy ratio stands at 15.70% at the end of Q1 2014, well above the regulatory requirements. As a result of the performance, earnings per share were at Rs. 1.49 for Q1 2014, while return (profit before tax) on assets and return on equity stood at to 1.47% and 9.48% respectively. The bank’s net asset value per share as at 31 March 2014 was Rs. 62.64 (Group Rs. 65.30).