Seylan Bank records Rs. 4.6 Bn PAT for FY 2021, peaking a 52.11% growth from previous year

Net Interest Income soars with impressive 20.98% growth

Seylan Bank recorded a Profit After Tax (PAT) of LKR 4.6 Bn for the year ended 31 December 2021 as Net Interest Income (NII) soared with an impressive growth of 20.98% for the period under review compared to 4.64% growth reported in 2020.

Despite the extremely challenging operating conditions that prevailed in 2021, the Bank recorded a healthy growth of 46.62% in Profit Before Tax (PBT) amounting to LKR 6.0 Bn compared to LKR 4.1 Bn recorded in 2020. Similarly, the Bank’s Profit After Tax (PAT) also achieved a 52.11% growth amounting to LKR 4.6 Bn in 2021 compared to LKR 3.0 Bn recorded in the previous financial year.

Though the Bank’s overall interest income for the period under review recorded a decrease of LKR 4.3 Bn to record LKR 46.8 Bn in 2021, interest expenses for the financial year decreased at a higher percentage of 26.66% to LKR 23.2 Bn compared to LKR 31.6 Bn recorded in 2020.

As a result, the Net Interest Income (NII) recorded an impressive growth of 20.98% for the period under review compared to 4.64% growth reported in 2020. An improved Net Interest Margin (NIM) of 4.05% recorded in 2021 compared to 3.63% in 2020 was driven by the timely re-pricing of assets and liabilities, together with the Bank’s continual strengthening of the CASA base which grew by LKR 27.6 Bn with 19.00% YoY growth in 2021.

The Bank’s net fee and commission income recorded a notable growth of 24.44% to LKR 4.6 Bn from LKR 3.7 Bn in the previous financial year. The growth in fee and commission income was driven mainly by guarantees, issuance fees, trade related fees as well as fee income on loans and cards.

The Bank recorded a total operating income growth of 23.71% amounting to LKR 31.4 Bn in 2021 compared to LKR 25.4 Bn in the previous financial year.

The Bank’s net gains from trading was reduced by 163.02 %, and was affected by the mark to market loss on derivative financial instruments and government securities during the year under review. Net Gains from de-recognition of financial assets recorded a negative growth of 29.28% over the prior year the year under review. Net other operating income of the Bank amounted to LKR 2,877.6 Mn for 2021, an increase of 172.04 % compared to the previous year.

The overall operating expenses of the Bank increased by 2.15% from LKR 12.8 Bn in 2020 to LKR 13.1 Bn during the period under review. The Bank’s personnel expenses increased slightly by 0.15% to LKR 7.3 Bn in 2021 compared to LKR 7.2 Bn in the previous year. Personnel Expenses includes a reversal of LKR 437.0 Mn past service cost on defined benefit obligation and if same was excluded, the personnel cost would have been higher with a 6.19% increase over the previous year. This was mainly due to annual increments as per collective agreements and staff promotions resulting an increased salary scales.