Seylan Bank PAT up 26% YoY to Rs. 8.3 b by Q3 2025

• Profit Before Income Tax reaches Rs. 12.8 b, up 20.75% YoY
• Reports Return on Equity of 15.08%; Total Capital Adequacy Ratio of 18.34%
• Impaired Loans (Stage 3) Ratio at 1.48%

Chairman Justice Buwaneka Aluwihare	Director/CEO Ramesh Jayasekara

Seylan Bank yesterday said it recorded a Profit Before Income Tax (PBT) of Rs. 12.8 billion in Q3 2025, up 20.75% from Rs. 10.6 billion in Q3 2024. For the 9 months ended 30 September 2025, Profit After Tax (PAT) recorded by Seylan Bank was Rs. 8.3 billion, up 26.30% from Rs. 6.6 billion recorded in the corresponding period of 2024.

The bank said that net interest income decreased from Rs. 27.2 billion to Rs. 27 billion, a marginal decrease of 0.75% over the previous year for the 9 months ended 30 September 2025 mainly due to the reduction in market interest rates and repricing of loans and deposits. 

The bank’s Net Interest Margin (NIM) also recorded a reduction from 4.90% in 2024 to 4.48% in Q3 2025. Net fee based income recorded a growth of 15.99% from Rs. 5.8 billion to Rs. 6.7 billion during Q3 2025, and growth was mainly attributed to fee income from cards, remittances, trade and other financial services. 

The bank’s total operating income for Q3 2025 was Rs. 35.1 billion, an increase of 2.57% compared to Rs. 34.3 billion in the corresponding period of 2024, driven mainly by the increase net fee and commission income and other operating income during the period.

Total Operating Expenses recorded an increase of 9.38% from Rs. 15.7 billion in 2024 to Rs. 17.1 billion in 2025 for the 9 months ended 30 September 2025. Personnel expenses increased by 8.21% from Rs. 8.1 billion to Rs. 8.7 billion mainly due to increase in staff related expenses. 

Other operating expenses and depreciation and amortisation expenses too increased by 10.64% due to increase in prices of consumables and services over the period. The Bank continues to take relevant measures to curtail costs through various cost optimisation initiatives. 

The bank recorded an impairment charge of Rs. 772 million in Q3 2025 against Rs. 4.1 billion reported in Q3 2024, a reduction of 81.39%. 

The bank has ensured impairment provisions are made to capture changes in global and local economy, credit risk profile of customers and the credit quality of the bank’s loan portfolio in order to ensure adequacy of provisions recognised in the financial statements. 

The bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio stood at an impressive 1.48% (2024 – 2.10%), while the Stage 3 Provision Cover Ratio stood at a strong 83.22% as at 30/09/2025, one of the highest in the banking industry.

Income tax expenses recorded as Rs. 4.5 billion, which is a 11.64% increase over the comparative period, which stood at Rs. 4 billion. 

Value Added Tax on Financial Services increased for the first nine months from Rs. 3.3 billion to Rs. 3.9 billion in 2025 which is a 15.33% increase over the corresponding period. 

Social Security Contribution Levy increased for the first nine months from Rs. 467 million to Rs. 539 million in 2025 which is a 15.33% increase over the corresponding period. 

Overall, the bank recorded a Profit After Tax (PAT) of Rs. 8.3 billion during Q3 2025 a growth of 26.30% over the corresponding period in 2024.

The bank’s total Assets increased from Rs. 780 billion to Rs. 853 billion during Q3 2025, demonstrating a steady growth over the last nine months in 2025. The bank also made arrangements to canvas new bank loans and deposits while retaining its existing customer base. 

Loans and advances of the bank were recorded at Rs. 534 billion, a net growth of Rs. 71 billion, while deposits were recorded at Rs. 675 billion, a net growth of Rs. 28 billion during Q3 2025. The bank’s CASA ratio was maintained at 29%.

Key financial ratios and indicators of Seylan Bank remained sound as of 30 September 2025. The capital adequacy ratios were well above the regulatory minimum requirements and recorded 12.24% as Common Equity Tier 1 Capital Ratio and Total Tier 1 Capital Ratio and 18.34% as the Total Capital Ratio. 

The bank maintained the Liquidity Coverage Ratio (LCR) well above the statutory requirement. All Currency LCR Ratio and the Rupee LCR Ratio were maintained at 317.20% and 276.57% respectively. 

The banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.48% (2024 – 2.10%) and 83.22% (2024 – 80.90%) respectively.

The Return on Equity (ROE) stood at 15.08% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.12% (2024 – 2.14%) for the period under review. 

The bank’s Earnings per Share stood at Rs. 13.10 in Q3 2025 compared to Rs. 10.37 reported in Q3 of the previous year. The bank’s Net Assets Value per Share stood at Rs. 122.99 as at 30 September 2025 (Group Rs. 126.33).

The bank opened 20 “Seylan Pahasara Libraries” during the first nine months in 2025, taking the total number of libraries contributed to 285, which signifies the bank’s commitment to foster wider focus on education through building of libraries in under privileged schools across the island.

The bank also successfully raised Rs. 15 billion Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable, 5 years and 10 years Debentures on July 2025, which was oversubscribed on the same day itself. 

Fitch Ratings upgraded the National Long-Term Rating of Seylan Bank to ‘A+(lka)’ by two notches with a Stable Outlook in 2025.