Seylan Bank PAT surges 102% to Rs. 2.3 b in 1Q

• PBT up by 115% to Rs. 3.7 b 
• Overall Statutory Liquid Assets Ratio at 39.42%
• Total Capital Adequacy Ratio 15.84%

Chairman Ravi Dias

CEO Ramesh Jayasekara

Seylan Bank yesterday announced an impressive growth in its first quarter of 2024 financial results as at 31 March 2024, with a Profit Before Tax (PBT) of Rs. 3,704 million, marking a 115% increase compared to 1Q of 2023. 

The Bank’s Profit After Tax (PAT) also witnessed a remarkable growth of 102%, standing at Rs. 2,295 million. Despite a challenging environment, Seylan Bank has reported a strong financial performance.

In a statement, Seylan said its Net Interest Income decreased by 17.71%, from Rs. 11,388 million to 

Rs. 9,371 million over the previous year. The net interest margin also recorded a reduction from 5.76% in 2023 to 5.24% in 1Q of 2024. The Bank’s net fee-based Income recorded a growth of 3.62%, mainly due to an increase in card related income, commission on guarantees, and income from trade.

The Bank’s total operating income was at Rs. 11,707 million, a decrease of 12.51% compared to the corresponding period of 2023, driven mainly by a reduction in net interest income. However, other income captions comprising of net gains from trading activities, net gains from de-recognition of financial assets, and net other operating income, reflected an overall increase of 127.22% compared to the corresponding period of 2023.

The Bank recorded an impairment charge of Rs. 1,555 million in Q1 2024, a reduction of 75.57% over the corresponding period mainly due to enhanced credit quality and strengthening of recovery initiatives.

Total operating expenses recorded an increase of 15.42% from Rs. 4,441 million to Rs. 5,126 million for the 3 months ended 31 March 2024. Personnel expenses increased by 21.49% from Rs. 2,237 million to Rs. 2,718 million mainly due to increases in staff benefits based on the recently concluded collective agreement. Other operating expenses and depreciation and amortisation expenses also increased by 9.25% due to increase prices in consumables and services over the period demonstrating the Bank’s continued measures to curtail costs through various cost reduction initiatives. 

Income tax expenses surged 140.67% to Rs. 1,409 million from Rs. 585 million in the comparative period due to higher profits. Value Added Tax on financial services increased by 57.77% from Rs. 735 million to Rs. 1,160 million for the first three months of 2024. Additionally, Social Security Contribution Levy rose by 37.35% from Rs. 117 million to Rs. 161 million during the same period.

The Bank’s Total Assets were recorded at Rs. 712 billion as of 31 March 2024. Loans and advances net of impairment were recorded at Rs. 427 billion. Deposits reflected a marginal reduction to Rs. 590 billion. Local currency deposits increased by Rs. 15.46 billion while foreign currency deposits contracted by 

Rs. 16.61 billion mainly due to local currency appreciation.

The Bank’s performance metrics have also showed improvement during the period under review. The Bank’s Asset Quality Ratios indicated an Impaired Loan (Stage 3) Ratio of 3.89% and an Impairment (Stage 3) to Stage 3 Loans Ratio of 66.75%. Return on Equity (ROE) stood at 14.94% compared to 10.88% in 2023, while Earnings per Share for Q1 2004 increased to Rs. 3.61 from Rs. 1.79 in Q1 2023.

Key financial ratios and indicators of Seylan Bank PLC remained sound as of 31 March 2024. The capital adequacy ratios were well above the regulatory minimum requirements and recorded 12.69% as Common Equity Tier 1 Capital Ratio and Total Tier 1 Capital Ratio and 15.84% as the Total Capital Ratio.

In addition to its financial achievements, Seylan Bank opened six ‘Seylan Pahasara Libraries’ during the quarter, bringing the total number to 231 as of 31 March 2024.