Seylan Bank records Rs. 5.49 b PAT for 1H

• Profit Before Tax up 15.18% to Rs. 8.44 b 
• Return on Equity at 15.29%
• Total Capital Adequacy Ratio at 16.85%
• Impaired Loans (Stage 3) Ratio at 1.76% 
• Liquidity Coverage Ratio (LCR): All Currency 295.22% and Rupee 306.44% 

Chairman Buwaneka Aluwihare

Director/CEO Ramesh Jayasekara

Seylan Bank yesterday said it recorded a robust performance with Profit Before Tax (PBT)

of Rs. 8,444 million for 1H 2025, against Rs. 7,331 million in 1H2024 demonstrating a growth of 15.18%.

For the six months ended 30 June 2025, Profit After Tax (PAT) recorded by Seylan Bank was Rs. 5,489 million a growth of 20.41% against Rs. 4,558 million recorded in the corresponding period of 2024.

Net interest income decreased from Rs. 18,590 million to Rs. 17,762 million, a decrease of 4.45% over the previous year for the six months ended 30 June2025 mainly due to the reduction in market interest rates and re-pricing of loans and deposits.

The Bank’s Net Interest Margin (NIM) also recorded a reduction from 4.90% in 2024 to 4.52% in 1H 2025. The Bank’s net fee based income recorded a growth of15.43% from Rs. 3,739 million to Rs. 4,316 million during 1H 2025, and growth was mainly attributed to fee income from cards, remittances, trade and other financial services.

The Bank’s total operating income was Rs. 23,114 million, a decrease of 0.71% compared to Rs. 23,279 million recorded in the corresponding period of 2024, driven mainly by the reduction in Net Interest Margins during the period.

Other income captions comprising of net gains from trading activities and net other operating income, reflected an increase compared to the corresponding period of 2024.

Total Operating Expenses recorded an increase of 8.37% from Rs. 10,388 million in 2024 to Rs. 11,258 million in 2025 for the six months ended 30 June 2025. Personnel expenses increased by 7.99% from Rs. 5,372 million to Rs. 5,801 million mainly due to increase in staff related expenses. Other Operating expenses and depreciation and amortisation expenses too increased by 8.78%due to increase in prices of consumables and services over the period. The Bank will continue to take relevant measures to curtail costs through various cost optimisation initiatives.

The Bank recorded an impairment charge of Rs. 491 million in 1H 2025 against Rs. 2,956 million reported in 1H 2024 with a reduction of 83.39%.The Bank has ensured impairment provisions are made to capture the changes in the 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 1.76% (2024 – 2.10%), while the Stage 3 Provision Cover Ratio stood at a strong 81.82% as at 30/06/2025, one of the highest in the banking industry.

Income tax expenses recorded as Rs. 2,956 million which is a 6.59% increase over the comparative period, which stood at Rs. 2,773 million. Value Added Tax on financial services increased for the first six months from Rs. 2,286 million to Rs. 2,564 million in 2025, which is a 12.15% increase over the corresponding period. 

Social Security Contribution Levy increased for the first six months from Rs. 318 million to Rs. 356 million in 2025 which is a 12.15% increase over the corresponding period.

Overall, Bank recorded a Profit after Tax (PAT) of Rs. 5,489 million during 1H of 2025, a growth of 20.41% over the corresponding period in 2024.

The Bank’s total Assets increased from Rs. 780 billion to Rs. 812 billion during 1H of 2025, demonstrating a steady growth over the last six months. The Bank also made arrangements to canvass new to bank loans and deposits while retaining its existing customer base. Loans and advances of the bank were recorded at Rs. 494 billion a net growth of Rs. 31 billion, while deposits were recorded at Rs. 670 billion, a net growth of Rs. 23 billion during 1H 2025. The Bank’s CASA ratio was maintained at 30%.

Key financial ratios and indicators of Seylan Bank PLC remained sound as of 30 June 2025. The capital adequacy ratios were well above the regulatory minimum requirements and recorded 13.14% as Common Equity Tier 1 Capital Ratio and Total Tier 1 Capital Ratio and 16.85% 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 295.22% and 306.44% respectively. 

The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.76% (2024–2.10%) and81.82%(2024 – 80.90%) respectively.

The Return on Equity (ROE) stood at 15.29% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.15% (2024 – 2.14%) for the period under review, recording an improvement. 

The Bank’s Earnings per Share stood at Rs. 8.63 in 1H of 2025 compared to Rs. 7.17 reported in 1H of the previous year. The Bank’s Net Assets Value per Share stood at Rs. 118.73 as at 30 June 2025 (Group Rs. 121.99).

The Bank opened 19 “Seylan Pahasara Libraries” during 1H of 2025 taking the total number of libraries to 284, clearly signifying the Bank’s commitment to foster education and support children across the island.

The Bank also successfully raised Rs. 15 billion Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable, five years and 10 years 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 on 21 January 2025.