Seylan Bank reports Rs 720m PAT for Q1, 2016
Seylan Bank, recorded a strong quarterly performance with profits
after income tax reaching Rs. 720 million, for the first quarter ended
March 31, 2016, a 4% increase over the Rs. 691 million reported in the
corresponding period of 2015.
Net Interest income increased from Rs 2.8 billion to Rs 2.9 billion,
a 4.8% increase for the three months ended 31st March 2016. Net fee and
commission income increased 23.6% from Rs 562 million to Rs 695 million
during Q-1 2016, showing a consolidation of the solid growth achieved by
Seylan Bank over the past few years.
Chairman Nihal Jayamanne PC |
Director and CEO, Kapila Ariyaratne |
Other operating income comprising net gains from trading, gains on
financial instruments, gains on foreign exchange and other income
decreased by 117% from Rs. 401 million in 2015 to a net loss of Rs. 68
million during Q-1, 2016 mainly as a result of mark- to-market losses on
government securities, due to the upward movement in interest rates.
The bank also focused considerably on cost containment. This was
evident by the containment of growth in total expenses of 6.8% from 2.1
billion to Rs.2.2 billion during Q-1 2016.
The bank reported a net credit growth of 4.27%, with net advances
growing from Rs 193 billion to Rs 201billion during Q-1 2016.
During Q-1 2016, the bank grew its deposit base from Rs. 224.5
billion to Rs. 225.4 billion. The Bank's low cost deposit base
comprising current and savings accounts (CASA) stood at 36.9% of the
total deposit base as at end March 2016.
Gross NPA (net of IIS) was recorded at 4.71% as at end March 2016,
The bank has been able to consistently improve its asset quality since
2009 through focused, sustained and effective recovery efforts.
The Bank also continued its CSR initiatives focusing on education and
accelerated its libraries project for under privilege schools. Twenty
more school libraries were opened by the Bank during Q-1 2016 taking the
overall number of libraries opened under the project to 100.
The Branch refurbishment and relocation too continued in full stream
during 2016, with a view to enhance the customer's service experience.
85% of the branch network has been refurbishment over the last 4 years.
The bank opened 4 new branches in Wennappuwa, Dankotuwa, Pannala and
Athurugiriya during Q-1 2016. As at 31st March 2016, the Bank network
comprised of 163 Branches, 189 ATMs and 100 Student Saving Centres.
The Bank's total Capital Adequacy ratio stands at 11.43%, of which
the Tier - 1 ratio stands at 11.02% at the end Q-1 2016, both above the
regulatory requirements. In July 2015, Fitch affirmed the Bank's rating
at 'A-lka' with a 'stable' outlook.
As a result of the impressive performance, Earnings per share were at
Rs. 2.09 for Q-1 2016, while Return (profit before tax) on Assets and
Return on Equity stood at to 1.27% and 12.13% respectively. The Bank's
Net Asset Value per share as at March 31, 2016 was Rs 65.04 (Group Rs
68.47).
Profit after tax improves by 4.18% to Rs. 720m
Net Loan book grows by 4.27% to Rs. 201b
Total assets up by 5.99% to Rs. 314 b
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