Seylan Bank profit momentum continues into Q1 2023

Seylan Bank began the new fiscal year on a strong note, with Q1 2023 recording a Profit Before Tax (PBT) of LKR 1.7 Bn compared to LKR 1.5 Bn in 1Q 2022 demonstrating a robust growth of 17.26%. Supporting the bottom line, Profit After Tax (PAT) was LKR 1.135 Bn in 1Q 2023, a 7.69% increase over the corresponding 2022 period. Contributing significantly to the Bank’s profit momentum was a surge in Net Interest Income (NII) by 67.98% for the period under review.

Growth in the Bank’s topline for Q1 2023 was propelled by notable increases in operating income of LKR 13.3 Bn, a 47.26% growth during the period under review compared to LKR 9.1 Bn in the corresponding period of 2022, driven mainly by growth in Net Interest Income, Net Fee Income etc. The bank recorded a substantial increase in interest income, amounting to LKR 28.9 Bn, reflecting a 116.87% growth compared to Q1 2022.

Additionally, Net Fee and Commission Income posted a notable growth of 23.34% to LKR 1.8 Bn from LKR 1.4 Bn in Q1 2022, mainly due to increase in Loans and Advances related Fees, commission income on Debit & Credit Cards and Other Financial Services etc.

The Bank’s total assets as at 31 March 2023 was LKR 671 Bn. While loans and advances was LKR 424 Bn, a contraction mainly due to the impact from local currency appreciation, deposits reflected a marginal growth to LKR 550 Bn. The contraction of assets and liabilities was partly due to local currency appreciation, which led to a decrease in the value of foreign currency assets and liabilities.

Total Operating Expenses recorded an increase of 23.39% from LKR 3.6 Bn in the 1Q of the previous year to LKR 4.4 Bn during the period under review, mainly due to the impact of price increases due to higher inflation and local currency depreciation. The Bank’s personnel expenses increased by 13.08 % to LKR 2.2 Bn in 1Q 2023 compared to LKR 1.98 Bn in 1Q 2022 as a result of the salary revision based on the collective agreement and other adjustments provided to compensate rising cost of living expenses. Additionally, establishment expenses increased by 36% to LKR 2.2 Bn during the period under review.