Seylan Bank PAT surges to Rs. 2.7 b, 21% growth over last year

Monday, 26 October 2015 00:00 -     - {{hitsCtrl.values.hits}}


Seylan Bank recorded an impressive performance with profit before income tax reaching Rs. 4,062 million for the nine months ended 30 September 2015. Profits 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 reported at Rs. 989 million, compared to the Rs. 1,041 million reported in the corresponding three months of last year.

Net interest income increased from Rs. 8.22 billion to Rs. 8.85 billion, an 8% increase for the nine months ended 30 September 2015. 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 September 2015. The bank’s net advance portfolio too increased from Rs. 155 billion to Rs. 172 billion, reporting an 11% growth during the nine months under review.

The bank was also able to improve its asset quality through effective recovery and rehabilitating efforts. This enabled the bank to reduce its Gross NPA (net of IIS) from 7.69% in December 2014 to 6.12% as at end September 2015. The bank has consistently been able to improve its asset quality since 2009 through focused, sustained and effective recovery efforts. 

The bank based on its 4-year Strategic Plan (2012-2016) has 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, shareholder value, etc. The Strategic Plan also earmarks the opening of 100 libraries in underprivileged schools; 72 such school libraries have been opened by the bank since 2013.

The branch relocation and refurbishment project too continued full steam during 3Q 2015, with a view to enhance the customers’ service experience. The bank opened two new branches, fully refurbished another 12 branches and relocated a further two branches to more customer friendly locations. As of end September 2015, over 85% of the branch network has been refurbished since 2010. 

As at 30 September 2015, the bank network comprised 159 branches, 181 ATMs and 93 student savings centres.

The bank’s total capital adequacy ratio stands at 13.13% at the end of Q-3 2015, well above the regulatory requirements. In July 2015, Fitch affirmed the Bank rating at ‘A –lka’ with a stable outlook.

As a result of the impressive performance, Earnings per share was at Rs. 7.91 for Q-3 2015, while return (profit before tax) on assets and return on equity stood at to 2.08% and 15.03% respectively. The bank’s net asset value per share as at 30 September 2015 was Rs. 72.31 (Group Rs. 75.76).