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Seylan Bank records strong performance with PAT of Rs. 6.2 bn. Up by 33%

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Seylan Bank recorded a strong performance, despite a challenging environment and posted a Profit Before Income Tax of Rs.10.08 billion and Profit after Income Tax of Rs. 6.26 billion which is an increase of 33%.

Total Assets reached to Rs. 718 billion with a YoY growth of 7% while it paid Rs.7.7 billion in Taxes to the Government in 2023.  The Net Interest Income of the Bank was reported as LKR 40.1 Bn in 2023 compared to LKR 40.5 Bn reported in 2022, a slight 1% drawback due to volatility in interest rates during the year. The Bank’s Net Interest Margin on Average Total Assets stood at 5.76% in 2023 compared to 6.33% in 2022.

Net fee and commission income of the Bank has shown a notable growth of 16 % to LKR 7 Bn from LKR 6 Bn reported in previous year.The growth in 2023 is mainly attributable to fee income from cards, loans and other financial services.

The Bank’s Total Operating Income decreased by 3% to LKR 49.5 Bn in 2023 compared to LKR 51 Bn in the previous year mainly due to decrease in foreign exchange income.

The Bank recorded an impairment charge of LKR 17Bn during 2023 against LKR 26 Bn reported in the corresponding period of 2022 with a reduction of 36%.

During the year 2023, the impairment charge on Loans and Advances amounts to LKR 15.3 Bn (2022 – LKR 21Bn) and impairment charge on Foreign Currency Denominated Bonds amounts to LKR 1.5 Bn (2022 – LKR 4.7Bn). The Bank’s Personnel Expenses increased from LKR 8 Bn in 2022 to LKR 9.1 Bn in 2023, a 15% growth mainly due to increase in staff benefits and adjustments made as relief allowances to absorb high cost of living and taxes.

Other Operating expenses and depreciation and amortization expenses too increased by 28% to LKR 9.3 Bn during 2023 compared to LKR 7.3 Bn reported in 2022 mainly due to increase in prices of consumables and services. The Bank will continue to take relevant measures to curtail costs through various cost initiatives.

The Bank’s total operating expenses increased by 21% to LKR 18.5 Bn during the period under review compared to LKR 15.2 Bn recorded in the previous year. The Bank’s Value Added Tax on Financial Services increased by 31% amounting to LKR 3.45Bn compared to LKR 2.65 Bn recorded in the previous year due to increase in VAT liable income.

The Bank’s Income Tax Expense reported a growth of 99.5% to LKR 3.82 Bn in 2023 compared to LKR 1.92 Bn reported in 2022.

The Bank recorded a Profit before Tax (PBT) of LKR 10.08 Bn for the period under review with a 52% growth over the previous year while recording a Profit after Tax (PAT) of LKR 6.26 Bn for the year with a 33% growth over the previous year, despite challenging market & economic conditions that prevailed during the period.

The Bank’s total assets grew by 6.7% during the year under review to reach LKR 718Bn as at 31 December 2023 compared to LKR 673 Bn recorded in the previous year demonstrating the sustained growth of the Bank over the years.

The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) to Stage 3 Loans Ratio stood at 3.85% and 68.29% in 2023, compared to 4.98% and 54% in 2022

The Bank’s total Deposit Base grew by LKR 44 Bn during the year 2023 to LKR 591 Bn compared to total Deposits of LKR 547 reported in the previous year.

The Bank’s CASA base grew from LKR 163 Bn in 2022 to LKR 177 Bn in 2023 as of 31 December, which is a 8% growth from the previous year. CASA ratio stood at 30% in 2023.

The Return on Equity (ROE) stood at 10.88% for the year under review compared to 8.85% recorded in 2022.

The post Seylan Bank records strong performance with PAT of Rs. 6.2 bn. Up by 33% appeared first on DailyNews.

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