Seylan Bank records a pre-tax profit of Rs. 3.18 b

Friday, 1 March 2013 00:01 - - {{hitsCtrl.values.hits}}

Seylan Bank said yesterday it has recorded an impressive 2012 performance with Profits before Income Tax reaching Rs 3.184 Billion for the 12 months ended 31st December 2012.

Profits after tax for the year surpassed Rs. 2 Billion for the first time in its history recording Rs. 2.049 Billion which is a 208% increase compared to the Rs 665 Million reported under SLFRS/LKAS Accounting Standards adopted this year.

Despite controlled credit growth and industry wide pressure on interest margins, the Net Interest income increased by 4.76% to Rs 9.020 Billion for 12 months ended 2012, resulting from selective growth in quality advances.

Net fee and commission income increased from Rs 1.434 Billion to

Rs 1.694 Billion in 2012. This was achieved in spite of an overall reduction in import related activities through the Bank diversifying into various other trade and fee income generating services.

During the period under review the Bank focused considerably on controlling its overhead costs. Many functions housed in buildings in and around Colombo were relocated to one Central location. The efforts on improving cost efficiencies have resulted in direct improvements to bottom-line as evident this year.

The Bank grew its deposits base and Net Advances portfolio by

Rs 22.7 Billion (18.35%) and Rs 18.3 Billion (17.24%) respectively despite fierce competitive for deposits and a rising interest rate environment. The Bank has also been able to improve its asset quality consistently since 2009 through focused, sustained and effective recovery efforts. This enabled the Bank to reduce its NPA ratio (net of IIS) from 14.24% in 2011 to 12.99% by end 2012.

Seylan Bank Chairman Nihal Jayamanne PC stated, “The results prove that our strategies have begun to yield the desired results and have provided us an excellent platform to achieve sustainable growth”.

During 2012, the Bank opened 15 new branches/convenient centres, fully refurbished 17 branches / convenient centres and relocated several other branches to more customer friendly locations. As at 31st December 2012, the Bank network comprised of 147 Branches, 154 ATMs and 81 Student Savings Centres.

Preparing for future growth, the Bank raised funds though a successful Debenture issue in February that was over-subscribed on the opening day. In the coming year the Bank intends to invest on identified key areas which are in line with the Bank’s future growth strategies including new product development, branch expansion, service quality improvement, staff training & development and IT infrastructure.

As a result of the impressive performance Earnings per share improved to Rs 6.06, while return (profit before tax) on assets and return of equity improved to 1.82% and 11.25% respectively.

General Manager/CEO Kapila Ariyaratne stated, “A common vision, a singular focus and total commitment to diligently executing our strategy combined with excellent team work, have contributed to a remarkable performance in what has been our best year so far”.

The bank will celebrate its 25th year anniversary during March 2013.