Seylan records Rs. 1.5 b PAT

Seylan Bank reported a Profit before Income Tax of Rs. 2,269 million for the nine months ended September 30, 2013. Profits after Tax reached Rs. 1,536 million, a 3.9% decrease compared to the Rs. 1,598 million reported in the corresponding nine-month period in 2012. Profit after Tax for the third quarter of 2013 was Rs. 534 million compared with Rs. 638 million for the corresponding period last year.

The interim financial statements have been prepared in accordance with LKAS/SLFRS.

Despite subdued credit growth and industry wide pressure on interest margins, net Interest income increased from Rs. 6,800 million to Rs. 6,847 million for the nine months ended September 30, 2013. Fee and Commission income increased 24% from Rs. 1,243 million to Rs 1,542 million showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years.

During the nine months under review the Bank also focused considerably on cost containment. Due to many cost containment initiatives, personnel and overhead cost was contained to a 5.6% increase during the nine months ended September 30, 2013.

Seylan improved its asset quality through effective recovery and rehabilitating efforts which resulted in a significant reduction in its Gross NPA (net of IIS) from 12.99% in December 2012 to 11.31% as at end September 2013.

In September 2013, Fitch affirmed the Bank's rating at 'A-lka' with a stable outlook. The Bank has also embarked on an exercise to review, update and extend its Strategic Plan to 2016.

The areas of focus include advance and deposit growth, branch expansion, customer service improvement, staff development, NPA reduction, cost control, new product development, IT infrastructure and shareholder value. During 2013, the Bank opened three new branches, refurbished 11 branches and relocated a further five branches to more customer friendly locations.

As at September 30, 2013, the Bank network comprised 150 branches, 157 ATMs and 79 student savings centres.

Following the successful Rs 2 billion debenture issue (February 2013) that was oversubscribed on the opening day, the Bank's total Capital Adequacy ratio stands at 15.12% at the end of 3Q, 2013, one of the highest among the local banking industry.

Due to this sustained 3Q, 2013 performance, Earnings per share stood at Rs 4.48, while Return (profit before tax) on Assets and Return on Equity stood at to 1.53% and 10.46%.