Seylan Bank records Rs. 2,505 Mn PAT for nine months ended Sept. 30, 2022

Seylan Bank closed the nine months ended 30 September 2022 with a post-tax profit of Rs. 2,505 Million. In the backdrop of the volatile financial landscape experienced in Sri Lanka, described as the “worst since Independence”, the said post-tax profit has once again been seen as very commendable by financial analysts.

Net Interest income recorded an increase of 63.2% YOY from Rs. 17,068 Million to Rs 27,960 Million, for the 9 months ended 30th September. The Bank’s net fee based income increased by 38.22%, from Rs. 3,270 Million to Rs. 4,520 Million during nine months, mainly due to an increase in Trade Finance and Card Related Income.

Other income captions comprising net gains from trading activities, net gains from de-recognition of financial assets, net gains on foreign exchange transactions and other operating income increased by 37.13% over the previous year, from a net gain of Rs. 1,979 Million to a net gain of Rs. 2,715 Million during the nine months of 2022. The increase is mainly from net foreign exchange revaluation gains.

Total Expenses recorded an increase of 9.75 % during the nine months, from Rs. 10,036 Million in the the previous year to Rs. 11,015 Million in 2022. Personnel expenses increased by Rs. 530 Million mainly due to increase in the staff benefits based on the collective agreement. Other operating expenses and depreciation and amortisation expenses too increased by 10.39% due to increase in prices of purchases and services as a result of higher inflation and local currency depreciation. However, Bank will continue to take relevant measures to curtail costs with various cost initiatives.

The Bank recognised a total impairment charge of Rs. 18.8 Billion for the nine period in 2022 compared to Rs. 6.2 Billion reported in the corresponding period of last year, representing a 199.09% increase. The Bank increased the impairment provision to capture the impact on emerging global and local economic challenges and the credit risk profile of the customers.

The Bank reported a marginal growth of 2.66% in net Loans and advances to Rs. 453,730 Million during the period under review. Its overall deposit base increased from Rs. 488,653 Million in December 2021 to Rs. 524,439 Million during the nine months ended 30 September 2022, with a growth of 7.32%. The Bank’s CASA ratio (Current and Savings) stood at 30.25 %. Further the Bank’s asset base expanded by Rs. 50,223 Million to Rs. 657,800 Million.