Seylan Bank posts Rs. 514m PAT

Seylan Bank, recorded a strong quarterly performance with Profits before Income Tax reaching Rs. 798 million, a 9 percent increase for the three months ended March 31, 2014. Profits after tax reached Rs. 514 million compared to Rs. 505 million reported in the corresponding period in 2013.

Despite slower than expected credit growth and industry wide pressure on interest margins, Net Interest income increased by 13.7% to Rs. 2.45 billion for the three months ended March 31, 2014.

Net fee and commission income increased by 11.67% from Rs. 461 million to Rs. 515 million during Q-1, 2014, showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years. The Bank also successfully concluded a review and update of its strategic plan in 2013, which enabled the extension of the bank's 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. The strategic plan also earmarks the opening of 100 libraries in under-privileged schools over a period of four years. Twenty six school libraries have been opened by the Bank since 2013.

The Bank grew its deposits base from Rs. 167.4 billion to Rs. 170.5 billion during Q-1, while its Net Advances portfolio marginally reduced from Rs. 136.5 billion to Rs. 131.8 billion.

During Q-1, 2014, the Bank fully refurbished seven branches. As at March 31, 2014, the Bank network comprised of 151 branches, 160 ATMs and 90 Student Savings Centres.

The Bank's total Capital Adequacy ratio stood at 15.70% at the end of Q-1 2014, well above the regulatory needs. Earnings per share were at Rs. 1.49 for Q-1, 2014, while Return (profit before tax) on Assets and Return on Equity stood at 1.47% and 9.48%. The Bank's Net Asset Value per share as at March 31, 2014 was Rs. 62.64 (Group Rs. 65.30).