Seylan Bank reports impressive 1H 2023 profitability and strong growth

Seylan Bank, has demonstrated exceptional resilience and growth in challenging market conditions, recording an impressive Profit before Tax (PBT) of LKR 4.2 billion, a 104.65% increase for 1H 2023 compared to the same period in 2022. In addition, the Bank achieved a commendable Profit After Tax (PAT) of LKR 2.6 billion, a 71.29% growth over the corresponding period in the previous year.

The Bank’s strong financial performance is highlighted by key indicators that underscore its pledge to excellence and sustainable growth. The Bank maintained a healthy liquidity position with adequate buffers in terms of liquidity and capital for future growth.

The Overall Statutory Liquid Assets Ratio was 32.30% as of 1H 2023, ensuring the ability to meet and exceed regulatory requirements and support operations effectively. Additionally, reflecting its commitment to maintain a robust financial foundation, Seylan Bank continues to be well capitalized, boasting a Total Capital Adequacy Ratio of 15.51% as of 1H 2023. Demonstrating a further prudent approach is the well-maintained Common Equity Tier 1 Capital Ratio at 11.85%.

Notably, Seylan Bank’s Net Interest (NII) Income increased by 21.47%, reaching LKR 20.5 billion, while Net Interest Margin remained steady at 6%. The Bank’s net fee-based income also experienced robust growth of 26.72%, amounting to LKR 3.5 billion, driven by increased earnings from Debit and Credit Card Related Income, Commission on Guarantees, and remittances.

Seylan Bank’s total operating income recorded a notable growth of 13.31%, totalling LKR 24.6 billion for the first half of 2023. This impressive trajectory can be attributed to the Bank’s strategic focus on enhancing Net Interest Income, Net Fee and Commission Income, and other contributing factors.

While the Bank witnessed a reduction in certain income categories due to fluctuations in foreign exchange rates, Seylan Bank remained steadfast to optimizing its cost structure. The total Expenses have increased by 25.88%, reflecting measures taken to enhance employee benefits and adjust to changes in the economic landscape. Despite these challenges, the Bank remains steadfast in implementing cost-efficient strategies to maintain operational excellence.

A key highlight of Seylan Bank’s performance is the prudent management of impairment charges, which decreased by 15.88% from the previous year. The Bank’s commitment to maintaining adequate provisions to reflect changes in the global and local economy, customer credit risk profiles, and loan portfolio quality and expanded recoveries structure are part of its meticulous approach.