Seylan Bank PLC recorded a Profit After Tax (PAT) of Rs 1.1 billion in Q1 2022, maintaining its forward momentum in a period of volatile macroeconomic challenges. The Bank capitalised on its strong fundamentals with capital adequacy ratios well above regulatory requirements; whilst ensuring its liquidity position remained above the required minimum ratios during the quarter, maintaining the Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Foreign Banking Unit at 23.32 per cent and 22.65 per cent respectively. This, along with a strong Net Interest Income (NII) of Rs 6.8 billion, recording a growth of 22.51 per cent in the period under review, ensured that Seylan Bank perseveres through macroeconomic challenges to retain its forward momentum in the first quarter of 2022.
Seylan Bank recorded a total operating income growth of 21.80 per cent amounting Rs 9.1 billion during the period under review compared to Rs 7.5 billion in the correspondent year. The Bank’s net gain from trading recorded Rs 3.6 billion in 1Q 2022.
Net Fee and Commission Income recorded a notable growth of 24.20 per cent to Rs 1.437 billion from Rs 1.157 billion mainly due to increase in Card Related Income, Trade Finance Related Fees, and Other Financial Services Related Income such as commission income and E-banking. The Loans and Advances portfolio of the Bank recorded a growth of 4.56 per cent to Rs 462.1 billion during 1Q 2022. Seylan Bank’s overall deposit base recorded a growth of 5.52 per cent to Rs 515.6 billion in the period under review with the Bank’s CASA ratio (Current and Savings) at 34.24% per cent
The Return on Equity (ROE) stood at 8.18 per cent for the period under review, compared to 9.07 per cent recorded in 2021. The Return on Average Assets (ROAA) recorded as 0.94 per cent in 1Q 2022. Earnings per Share (EPS) in 2021 stood at Rs 1.82, a slight increase compared to the Rs 1.74 recorded in the comparative year, while Net Assets Value per Share recorded at Rs 88.31 (Group LKR 91.46).
Seylan Bank remained adequately capitalised in Q1 2022, with the key capital adequacy ratios above the regulatory minimum requirements. The Bank’s Common Equity Tier 1 (CET 1) Capital/ Total Tier 1 Capital Ratio were recorded as 9.78 per cent and the Total Capital Ratio as at end March 2022 was 12.78 per cent.
The Bank recorded impairment provision of Rs 3.4 billion for 1Q 2022 compared to Rs 2.2 billion for the correspondent year. Income tax expenses stood at Rs 413.2 million which is a 5.36 per cent increase from the comparative period which stood at Rs 392.2 million.