Seylan Bank records a Rs 1.5B PAT

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Seylan Bank recorded Profit after Tax (PAT) of Rs 1,504 million for the 6 months ended 30 June 2022, against Rs. 2,105 million reported in the corresponding period of 2021.

Net Interest income increased from Rs 10,971 million to Rs 16,851 million, a growth of 53.60% over the previous year for the six months ended 30 June 2022. The Bank’s net fee based income increased by 27.36% from Rs 2,180 million to Rs 2,776 million during 1H.

Other income captions increased by 37.20 % a net gain from Rs 1,526 million from the corresponding year to a net gain of Rs 2,093 million during 1H 2022.

Total Expenses recorded an increase of 7.43 % from Rs 6,750 million in the 1H of the previous year to Rs 7,251 million for the six months ended 30 June 2022. Personnel expenses increased by Rs 287 million mainly due to increase in the staff benefits based on the collective agreement. Other Operating expenses and depreciation and amortisation expenses too increased by 7.35% due to increase in prices of purchases and services as a result of higher inflation and local currency depreciation.

The Bank recognised a total impairment charge of Rs 11 billion for Q2 2022 compared to Rs 4 billion reported in the corresponding period of last year, representing a 183.49% increase.

The Bank reported a marginal growth of 5.83% in net Loans and advances to Rs 467,758 million during the period under review. Its overall deposit base increased from Rs 488,653 million in December 2021 to Rs 531,741 million in 1H 2022.

The Bank’s CASA ratio (Current and Savings) stood at 31.92 %. Further the Bank’s asset base expanded by Rs 58,902 million to Rs 666,478 million.

Overall, with the reported performance during the six months, Bank’s Earnings Per Share (EPS) stood at Rs 2.60.

The Bank recorded a Return (profit before tax) on Assets (ROAA) of 0.64 % and Return on Equity (ROE) of 5.83 %. The Bank’s Net Asset Value per share as at 30 June 2022 was Rs 89.26 (Group Rs 92.46). Seylan Bank remained soundly capitalised, with the key capital adequacy ratios well above the regulatory minimum requirements and recorded 10.18 % as total Tier 1 capital ratio and 13.54 % as the total capital ratio.

The Bank’s Liquidity Ratios are well within the statutory limits. The Statutory Liquid Assets Ratio (SLAR) of Domestic Banking Unit and Foreign Currency Banking Unit were reported as 25.97% and 21.28% respectively and the Bank’s Liquidity Coverage Ratio of All Currencies and Rupees were reported as 106.70% and 152.42% respectively. The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) to Stage 3 Loans Ratio stood at 4.36% and 47.65% respectively.