Seylan Bank announced an impressive Profit After Tax (PAT) of LKR 4.49 billion for the nine months ended September 30, 2023, representing a 79.47% surge in growth compared to LKR 2.5 billion in the corresponding period last year, demonstrating resilience in overcoming challenging market and economic conditions.
The Bank reported substantial growth in profitability for the first nine months of 2023. Profit before Tax (PBT) soared 100% to LKR 7.181 billion versus LKR 3.577 billion in the same period last year, driven overall by revenue and lower impairment charges. Core revenue streams such as growth in Net Interest Income, and Net Fee and Commission Income accelerated total operating income for the first nine months of 2023 which grew 6.19% to LKR 37.373 billion, up from LKR 35.194 billion in the same period of 2022.
Net interest income at Seylan Bank expanded 9.28% to LKR 30.554 billion through the first three quarters of 2023, up from LKR 27.960 billion. Fee-based income rose 19.29% to LKR 5.392 billion from LKR 4.520 billion in the comparative 2022 period, led by debit/credit card income, trade commission income, and remittance growth.Additionally, the Bank was able to maintain a steady Net Interest Margin of 5.98% during the period under review.
The Bank’s total expenses increased by 25.71%, reaching LKR 13.846 billion for the same period. This rise can be attributed to factors such as adjustments made for staff benefits and rising costs of consumables and services.
Seylan Bank recorded an impairment charge of LKR 13.447 billion during the nine months ending September 2023, reflecting a 28.61% reduction compared to the corresponding period in 2022. The impairment provision was made to account for changes in the macro economy and the credit risk profile of customers. The Bank’s balance sheet remained healthy, with asset growth to LKR 693 billion as of September 30, 2023. While Loans and Advances were recorded at LKR 412 billion, Deposits grew by 3.17%, reaching LKR 565 billion, reflecting progress in both Rupee and Foreign Currency Deposits.
Key financial ratios and indicators of the Bank remained strong as of September 30, 2023. Maintaining a healthy Total Capital Adequacy Ratio of 15.29%, the Bank’s ratios were well above the regulatory minimum requirements. Despite the tough economic conditions, the Bank has successfully delivered excellent growth in core revenue streams,growing profits, revenues and deposits.
Return on Equity (ROE) was 10.54%, while Earnings per Share (EPS) amounted to LKR 7.30 for the nine months ending September 2023, compared to LKR 4.07 in the corresponding period in 2022.
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