Seylan PAT hits Rs 3 billion mark

Seylan Bank reported a record profit after tax of Rs. 3,079 million for the year ended December 31, 2014. This is an impressive 33% growth in PAT compared to the Rs. 2,316 million reported in 2013, an impressive 33% growth in PAT.

Net Interest income increased from Rs. 9,719 million to Rs. 11,165 million, a 14.9% increase for the 12 months ended 31st December 2014. Fee and Commission income increased 6.1% from Rs. 2,127 million to Rs. 2,257 million showing a consolidation of the solid growth achieved by Seylan Bank over the past few years.

Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income increased significantly by 174.61% from Rs. 1,023 million to Rs. 2,809 million, mainly due to Capital Gains realised on Government Securities. During the year under review the Bank also focused considerably on cost containment. This impressive performance was supported by the containment of growth in expenses of 10.99% during 2014. This is reflected in the

Bank's declining Cost to Income ratio of 62.59% in 2013 reducing to 57.37% in 2014.

The sluggish credit demand evident in the first half of the year was reversed in the latter half with growth momentum picking up in the third and fourth quarters of 2014 and the Bank reported a net credit growth of 13.48%, with net advances growing from Rs. 136,553 Million in 2013 to Rs.

154,963 million.

During 2014, the Bank grew its deposit base from Rs. 167,371 million to Rs. 185,924 million.

The growth was predominantly achieved through the mobilisation of current and saving deposits, which enabled the Bank's low cost deposit base to be increased from 33% in December 2013 to 39% as at end December 2014.