Seylan Bank PAT surges to Rs 2.7 b

Seylan Bank recorded an impressive performance with profit before income tax reaching Rs 4,062 million for the nine months ended September 30, 2015.

Profit after Tax reached a record Rs 2,730 million a 21% increase compared to the Rs 2,253 million reported in the corresponding nine-month period.

The quarterly PAT figure (Q-3, 2015) was Rs. 989 million, compared to the Rs 1,041 million reported in corresponding period of last year.

Net interest income increased from Rs 8.22 billion to Rs 8.85 billion an 8%. Net fee and commission income increased by 13% from Rs 1,648 million to Rs 1,869 million with the bank showing a continuation of the solid growth trend recorded in the past few years.

During 2015, the Bank grew its deposit base from Rs 185.9 billion to Rs. 199.5 billion. A significant amount of this growth was achieved through the mobilisation of current and savings deposits, which enabled the Bank's low cost deposit base to be increased from 38% in December 2014 to almost 40% as at end of September 2015.

The Bank's Net Advance portfolio too increased from Rs 155 billion to Rs 172 billion, a 11% growth.

The Bank also improved its asset quality through effective recovery and rehabilitation.

This enabled the Bank to reduce its Gross NPA (net of IIS) from 7.69% in December 2014 to 6.12% as at end of September, 2015.

The Bank has consistently improved its asset quality since 2009 through focused, sustained and effective recovery.

The Bank based on their four-year strategic plan (2012-2016) have focused significantly on areas which include advance/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 underprivileged schools. Over 70 such school libraries have been opened by the Bank, since 2013. The branch relocation and refurbishment project too continued in full steam during 3Q, 2015, to enhance the customers' service experience.

The Bank opened two branches, fully refurbished another 12 branches and relocated a further two branches to more customer-friendly locations. As at end of September 2015, over 85% of the branch network has been refurbished.

The Bank network comprises 159 banches, 81 ATMs and 93 Student Savings Centres.

The Bank's total Capital Adequacy ratio stood at 13.13% at the end of Q-3, 2015, well above regulatory needs. In July 2015, Fitch affirmed the Bank rating at 'A -lka' with a stable outlook.

Earnings per share was at Rs. 7.91, while Return (profit before tax) on Assets and Return on Equity stood at to 2.08% and 15.03%.

The Bank's Net Asset Value per share was Rs. 72.31 (Group Rs 75.76).