Seylan Bank Q1 profits up 59%

Seylan Bank recorded a net Profit-After-Tax of Rs. 406.8m (Group Rs. 412.5m) in Q1 of 2012, compared with Rs. 256.3m (Group Rs 249.0m) last year. The performance is a 59 percent and 66 percent increase in net profits for the Bank and Group over the corresponding period last year.

Compared to Q1 of 2011, Net Interest Income grew by 9 percent from Rs. 1,878.4m to Rs. 2,047.3m, while Non Interest Income increased by 6 percent from Rs. 576.6m to Rs. 612.7m.

The total overhead costs were tightly controlled at Rs. 1,699.5m, as opposed to Rs. 1,669.9m in Q1 last year. Profit before Tax was 60 percent above last year at Rs. 632.6m.

In the quarter under review, strong and steady growth was evident in loans and advances and customer deposits which grew by Rs. 8.4b and Rs. 4.2b, which are growth rates of 28 percent and 14 percent annually.

Total assets too increased from Rs. 165.9b to Rs. 173.2b as of end March 2012.

The first quarter results have enabled Return on Assets (before tax) to improve from 0.99 percent to 1.5 percent and Return on Equity to improve from 6.72 percent to 9.24 percent since the year end.