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| Sunday,13 November 2005 |
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| News Business Features Editorial
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Seylan profits grow 50% to Rs. 595m in nine months Seylan Bank has posted a significant improvement in profit after tax for the nine months ending September 30, 2005 compared with the same period for the previous year. The Bank's profit after tax witnessed a major growth of 49.81% for the nine-month period ending September 30, 2005 to record 595.20 million compared to the previous year's figure of Rs. 397.31 million. Seylan's pre-tax profit was Rs. 797.7 million for the nine months ended September 30, 2005 as against Rs. 432.4 million in the same period of 2004 with a 84.4% growth. The group's profits attributable to shareholders was Rs. 634.82 million, up significantly by 37.85%. The thrust in profitability was largely attributed to a high growth in net profit after tax of 139.74% by the bank in the third quarter in 2005 compared with the third quarter of 2004, thereby achieving Rs. 239.54 million for the quarter. The growth in the profits of the Bank was largely attributed to a growth of 38.01% in Net Interest Income and substantial recovery of bad debts amounting to Rs. 296.7 million. The amount of bad debts recovered of Rs. 296.7 million is an increase of Rs. 211 million (246%) compared to the previous year's figure of Rs. 85.6 million. This was a result of a sound credit policy being implemented by the Bank with continuous focus on the recovery drive. An analysis of the Bank's results also show a favourable improvement in the cost/income ratio witnessing a sharp decrease to 63.89% during the nine months ending September 30, 2005 from 67.96% recorded during the same period in the previous year. Another milestone achieved by the bank when taken alone is that its Return on Average Assets (ROAA) has seen tremendous improvement increasing to 0.83% (annualised) in the nine months ended September 2005 when compared to 0.61% (annualised) in the first three quarters of 2004. Consequently, the Bank's Return on Equity also catapulted to 16.44% at the end of September 2005 compared to 8.23% last year. Other indicators that substantially favoured the positive results were a 23.7% annualised growth in Deposits and a 21.06% annualised growth in advances achieved by the Bank. The group also achieved an asset growth of 23.88% annualised, reflecting the growth in Advances and Deposits. |
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