Seylan Bank, recorded a strong quarterly performance with Profits after Income Tax reaching Rs. 720 Million, for the 3 months ended 31st March 2016, a 4% increase over the Rs. 691 Mn reported in the corresponding period of 2015.
Net Interest income increased from Rs 2,805 Million to Rs 2,939 Million, a 4.8% increase for the 3 months ended 31st March 2016. Net fee and Commission income increased 23.6% from Rs 562 Million to Rs 695 Million during Q-1 2016, showing a consolidation of the solid growth achieved by Seylan Bank over the past few years.
Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income decreased by 117% from Rs 401 Million in 2015 to a net loss of 68Million during Q-1 2016 mainly as a result of mark- to-market losses on Government Securities, due to the upward movement in interest rates.
During the period under review the Bank also focused considerably on cost containment. This was evident by the containment of growth in total expenses of 6.8% from 2,129 million to Rs.2,273 million during Q-1 2016.
The Bank reported a net credit growth of 4.27%, with net advances growing from Rs 193,103 Million to Rs 201,350 Million during Q-1 2016.
During Q-1 2016, the Bank grew its deposit base from Rs. 224,525 Million to Rs. 225,445 Million. The Bank’s low cost deposit base comprising current & savings accounts (CASA) stood at 36.9% of the total deposit base as at end March 2016.
Gross NPA (net of IIS) was recorded at 4.71% as at end March 2016, The Bank has been able to consistently improve its asset quality since 2009 through focused, sustained and effective recovery efforts.
The Bank also continued its CSR initiatives focusing on education and accelerated its libraries project for under privilege schools. 20 more school libraries were opened by the Bank during Q-1 2016 taking the overall number of libraries opened under the project to 100.
The Branch refurbishment and relocation too continued in full stream during 2016, with a view to enhance the customer’s service experience. 85% of the branch network has been refurbishment over the last 4 years. The Bank opened 4 new branches in Wennappuwa, Dankotuwa, Pannala and Athurugiriya during Q-1 2016. As at 31st March 2016, the Bank network comprised of 163 Branches, 189 ATMs and 100 Student Saving Centres.
The Bank’s total Capital Adequacy ratio stands at 11.43%, of which the Tier – 1 ratio stands at 11.02% at the end Q-1 2016, both above the regulatory requirements. In July 2015, Fitch affirmed the Bank’s rating at ‘A-lka’ with a ‘stable’ outlook.
As a result of the impressive performance, Earnings per share were at Rs. 2.09 for Q-1 2016, while Return (profit before tax) on Assets and Return on Equity stood at to 1.27% and 12.13% respectively. The Bank’s Net Asset Value per share as at 31st March 2016 was Rs 65.04 (Group Rs 68.47).
Seylan Bank reports a Profit-after-Tax of Rs. 720 Million for Q-1 2016
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