Friday Feb 27, 2026
Friday Feb 27, 2026
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| Chairman Justice Buwaneka Aluwihare, PC |
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| Director/CEO Ramesh Jayasekara |
Seylan Bank has reported its financial results for the year ended 31 December 2025, reporting a strong growth in profitability.
The bank recorded a Profit Before Tax (PBT) of Rs. 19.6 billion, reflecting a 22.3% increase compared to Rs. 16 billion reported in the previous financial year.
For the year under review, Profit After Tax (PAT) stood at Rs. 12.1 billion, a 20.5% growth over Rs. 10 billion recorded in the corresponding year of 2024. The reported PAT of Rs. 12.1 billion represents the highest annual profit achieved in the bank’s 37-year history, demonstrating sustained growth and strengthened financial performance.
Net interest income increased to Rs. 38.3 billion in 2025 from Rs. 36.7 billion in 2024, representing a 4.21% modest growth resulting from the growth in loan book and the reduction in market interest rates and the repricing of loans and deposits and Government securities. The bank’s Net Interest Margin (NIM) also moderated from 4.90% in 2024 to 4.50% in 2025. Meanwhile, the bank’s net fee-based income recorded a growth of 16.34%, increasing from Rs. 7.2 billion to Rs. 8.3 billion, primarily driven by fee income from cards, remittances, trade, and other financial services. The bank’s total operating income for 2025 was Rs. 48.1 billion, an increase of 13% compared to Rs. 42.6 billion recorded in the corresponding period of 2024, driven mainly by the increase in net interest income, net fee and commission income and other operating income.
Total operating expenses increased by 8.53%, rising from Rs. 19.7 billion in 2024 to Rs. 21.4 billion in 2025. Personnel expenses grew by 10.40%, from Rs. 10.2 billion to Rs. 11.3 billion, primarily due to higher staff-related costs. Other operating expenses, including depreciation and amortization, increased by 6.54%, reflecting higher prices of consumables and services during the year. The bank continues to implement targeted cost optimization initiatives to manage expenses efficiently.
The bank recorded an impairment charge on loans and advances, other financial assets, and credit-related commitments of Rs. 0.6 billion in 2025, significantly lower than Rs. 6.3 billion in 2024. Impairment provisions were maintained prudently to reflect changes in the global and local economy, customer credit risk profiles, and the overall credit quality of the bank’s loan portfolio, ensuring adequacy in the financial statements. The bank’s asset quality ratios demonstrated continued strength, with the Impaired Loan (Stage 3) Ratio at 1.03% (2024: 2.10%) and the Stage 3 Provision Cover Ratio at 86.33% as at 31 December 2025, among the highest in the banking industry.
Income tax expenses for 2025 amounted to Rs. 7.5 billion, representing a 20.47% increase over the comparative period amounting Rs. 6.0 billion. Value Added Tax (VAT) on Financial Services increased from Rs. 4.7 billion in 2024 to Rs. 5.6 billion in 2025, a 17.69% rise. Similarly, Social Security Contribution Levy (SSCL) increased from Rs. 0.7 billion to Rs. 0.8 billion, marking a 17.70% increase over the corresponding year.
The bank recorded a Profit After Tax (PAT) of Rs. 12.1 billion for 2025, reflecting a growth of 20.47% compared to the corresponding period in 2024. However, when adjusted for the impact of SLISB restructuring and the resultant reversal in 2024, the underlying profit growth for 2025 would have stands at 32.78%.
The bank’s total assets increased from Rs. 780 billion in 2024 to Rs. 921 billion in 2025, reflecting steady growth over the twelve-month period. The bank actively pursued new-to-bank loans and deposits while retaining its existing customer base. Loans and Advances grew to Rs. 600 billion, a net increase of Rs. 137 billion, while deposits rose to Rs. 733 billion, a net growth of Rs. 86 billion. The bank’s CASA ratio was maintained at 30%, supporting stable and cost-efficient funding.
As of 31 December 2025, the bank remained well-capitalised, with capital adequacy ratios comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 12.39%, while the Total Capital Ratio stood at 17.89%, reflecting a strong capital base.
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 229.92% and 227.99% respectively.
The bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.03% (2024 – 2.10%) and 86.33% (2024 – 81.79%) respectively.
The Return on Equity (ROE) stood at 15.89% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.31% (2024 – 2.14%) for the year under review.
The bank’s Earnings per Share stood at Rs. 19.05 in 2025 compared to Rs. 15.81 reported in the previous year. The bank’s Net Assets Value per Share stood at Rs. 128.87 as at 31 December 2025 (Group – Rs. 132.33).
During 2025, Seylan Bank expanded its flagship CSR initiative by opening 24 “Seylan Pahasara Libraries,” bringing the total number of libraries established to 289. This milestone underscores the bank’s continued commitment to fostering education and supporting underprivileged schools across the island by improving access to knowledge and learning resources.
The bank also successfully raised Rs. 15 billion Basel III-compliant Tier 2, listed, rated, unsecured, subordinated, redeemable, five-year and 10-year debentures on 9 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.
