Seylan pre-tax profit up 13.72% to Rs. 424.75m in 1Q, 2007

Seylan Bank's unaudited first quarter 2007 financials indicated a pre-tax profit of Rs. 424.75 Mn achieving a notable growth of 13.72% over the previous year's comparative period.

The Bank's net profit after tax was Rs. 205.82 Mn, a reduction of 23.34% of the previous year due to higher corporate taxes.

The financials also saw Seylan Group which comprises subsidiaries Seylan Merchant Bank Ltd., Ceylinco Seylan Development Ltd., and Seylan Bank Asset Management Ltd. recording a net profit after tax and minority interest of Rs. 212.59 Mn in the first quarter 2007.

The Bank's total income indicated a notable growth of 14.87% reaching Rs. 2.15 Bn mainly on account of its net interest income, growing at 15.26% over the corresponding period of 2006. This was achieved as a result of the Bank reaching a Rs. 100 Bn mark on its deposits and in turn paving the way for expansion in core business.

The Bank achieved this net profit after tax despite the negative impact of the two tiered taxation of VAT on financial services and corporate taxes had on its profits. Both VAT and corporate taxes totalled Rs. 418.51 Mn accounting for 67.03% of operating profit before taxes including VAT on financial services.

The management focus on recovery of dues through effective strategies that resulted in substantial written backs and recovery of B&D Debts of Rs. 187.36 Mn boosted the Bank's profitability.

This was in spite of new regulations focusing on general provisioning for which Rs. 75 Mn was made in the first quarter 2007.

During the period under review, the unique selling proposition of the Tikiri Minor Savings Scheme, which is its gifts structure was re-structured with exciting new gifts and new slabs and re-launched.

The Bank also organised an Under 13 Cricket Tournament among schools where the bank's Student Savings Centres are maintained.