Seylan Bank PAT surges to Rs. 2.2 b, 47% growth over last year

Tuesday, 4 November 2014 02:20 - - {{hitsCtrl.values.hits}}

Seylan Bank recorded an impressive performance with profit before income tax reaching Rs. 3,490 million for the nine months ended 30 September 2014. Profits after tax reached a record Rs. 2,253 million, a 47% increase compared to the Rs. 1,536 million reported in the corresponding nine-month period. The quarterly PAT figure (Q3) of Rs. 1,041 million was an improvement of 95% compared with Rs. 534 million reported in the corresponding three months of last year. Net interest income increased from Rs. 6.79 billion to Rs. 8.22 billion, a 21% increase for the nine months ended 30 September 2014. Net fee and commission income increased by 7% from Rs. 1,542 million to Rs. 1,648 million, with the bank showing a continuation of the solid growth trend

recorded in the past few years. During 2014, the bank grew its deposit base from Rs. 167.4 billion to Rs. 174.8 billion. The growth was predominately achieved through the mobilisation of current and savings deposits, which enabled the bank’s low cost deposit base to be increased from 33% in December 2013 to over 36% as at end September 2014. The bank’s net advance portfolio increased from Rs. 136.5 billion to Rs. 139.4 billion during the nine months under review. Despite the decline in gold prices and its impact on the pawning base, the bank was able to improve its asset quality with a significant reduction in its Gross NPA (net of IIS) from 10.58% in December 2013 to a single digit of 9.85% as at end September 2014. The bank also continued its CSR initiatives focusing on education and accelerated its 100 libraries project for underprivileged schools; 34 such school libraries were opened by the bank during the nine months of 2014. The branch relocation and upgrading project too continued full steam during 2014, with a view to enhancing customers’ service experience. During 2014, the bank upgraded 20 Convenient Banking Centres with limited operations to full branch status. The bank also opened four new branches, fully refurbished another five branches and relocated three branches to more customer-friendly locations. As at 30 September 2014, the bank network comprised 155 branches, 170 ATMs and 92 Student Savings Centres. The bank’s total capital adequacy ratio stands at 14.34% at the end of Q3 2014, 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 impressive performance, earnings per share was at Rs. 6.53 for Q3 2014, while return (profit before tax) on assets and return on equity stood at 2.10% and 13.44% respectively. The bank’s net asset value per share as at 30 September 2014 was Rs. 68.53 (Group Rs. 71.53).