Seylan Bank 1Q profits up 37.8% to Rs. 256.3 m

Seylan Bank has posted an impressive Rs. 256.3 m profit in the first quarter of 2011, recording a sharp 38% increase compared with the Rs. 185.9 m in the corresponding period of the previous year. The bank’s pre-tax profit was Rs. 395 m, up by nearly 36% from the Rs. 291.7 m in the corresponding period of the previous year.

Chairman of Seylan Bank Eastman Narangoda attributed this achievement to the unwavering faith and confidence the people of Sri Lanka have in Seylan Bank.

“Today we enjoy both stability and profitability. Our aggressive recovery drive which encompassed many areas, coupled with our far-reaching strategic plan and the commitment of our staff, have largely been responsible for successfully restoring investor confidence. Needless to say, the dividends are being enjoyed by our thousands of shareholders today. My board, the management and staff of Seylan Bank are very confident that 2011 will be yet another record making year and that we will surpass all expectations in terms of overall performance and profitability.”

The bank also plans to go in for a Rights Issue of 43,333,333 Ordinary Voting Shares and 41,186,666 Non Voting Shares in May 2011 through which it proposes to raise Rs. 4,691,533,285, which will be proposed at an EGM to be held during the month of May.

Seylan Bank recorded a net profit of Rs. 1.2 b for 2010 which was a 126% increase compared to Rs. 543 m for 2009. Pre-tax profit, at Rs. 1.9 b, was up by a staggering 124% from 2009, the highest-ever profit figure earned by the bank since its inception.

Creating a new paradigm in financial reporting for the second year in succession was its Annual Report for 2010. Titled ‘The Business Case,’ this handsome publication was dedicated to all the Bank’s stakeholders and discussed how Seylan Bank has renewed stakeholder confidence and made remarkable progress throughout year 2010.

In March this year Seylan Bank announced the appointment of veteran banker Kapila Ariyaratne as its new General Manager/Chief Executive Officer. Ariyaratne is a versatile banker with more than 25 years of wide ranging experience in the banking industry.

“Having achieved optimum performance standards based on available resources, Seylan now looks to develop its future business strategies to deliver even greater results to all stakeholders and add further shareholder value by aligning itself to the exciting new opportunities in the rapidly transforming local economy,” Ariyaratne said.

Seylan Bank now meets or exceeds all the statutory requirements stipulated by the CBSL. These positive indicators resulted in a corresponding rise in confidence among Seylan Bank’s shareholders and depositors. The bank also seems to be poised to deliver an extremely impressive performance in the coming years.