Seylan Bank ups 1H PAT by 10.78% to Rs. 6.1 b

• PBT up 10% to Rs. 9.3 b
• Total assets reach Rs. 976 b
• Return on Equity of 14.74%
• Impaired Loans (Stage 3) Ratio at 1.03%

Chairman Justice Buwaneka Aluwihare, PC

Director/CEO Ramesh Jayasekara

Seylan Bank PLC yesterday said it recorded a Profit Before Income Tax (PBT) of Rs. 9,298 million during the first half of 2026, compared to Rs. 8,444 million recorded in the corresponding period of 2025, reflecting a year-on-year (YoY) growth of 10.10%.

For the six months ended 30 June 2026, the bank recorded a Profit After Tax (PAT) of Rs. 6,080 million, representing a growth of 10.78% compared to Rs. 5,489 million recorded in the corresponding period of 2025.

Net interest income increased by 10.12% to Rs. 19,560 million mainly due to the significant growth in the bank’s total assets over the last 12 months from Rs. 812 billion as at the end of 1H 2025 to Rs. 976 billion as at 30 June 2026. The Bank’s Net Interest Margin (NIM) moderated from 4.5% in 2025 to 4.16% during 1H 2026. 

The bank’s net fee-based income recorded a growth of 20.85%, increasing from Rs. 3,847 million to Rs. 4,650 million, primarily driven by fee income from cards, remittances, trade, loans, and other financial services. 

Other income, comprising net gains/(losses) from trading, net gains from the derecognition of financial assets, and other operating income, increased during the period, primarily due to foreign exchange gains arising from higher trade volumes. However, this increase was partially offset by the decline in mark-to-market gains on Government securities and equity investments, reflecting the impact of prevailing market interest rates and related price movements. 

The bank’s total operating income rose by 13.34% to Rs. 25,542 million. 

Total operating expenses increased by 14.23% to Rs. 12,282 million in 1H 2026. Personnel expenses grew by 12.96% to Rs. 6,553 million, primarily due to annual salary revisions. Other operating expenses, including depreciation and amortisation, increased by 15.72%, reflecting higher prices of consumables and other related cost of services over the period. The bank continues to implement targeted cost optimisation initiatives to manage overhead costs efficiently.

The bank recorded an impairment charge of Rs. 733 million in 1H 2026, higher than Rs. 419 million in 1H 2025, with an increase of 74.98%. The bank has ensured impairment provisions are made 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 of provisions recognised in the financial statements. The bank’s asset quality ratios demonstrated continued strength, with the Impaired Loans (Stage 3) Ratio at 1.03% (2025: 1.03%) and the Stage 3 Provision Cover Ratio at 85.26% as at 30 June 2026, one of the highest in the banking industry.

Income tax expenses for 1H 2026 amounted to Rs. 3,218 million, compared to Rs. 2,956 million reported for 1H 2025. Value Added Tax (VAT) on Financial Services increased from Rs. 2,564 million to Rs. 2,833 million, while the Social Security Contribution Levy (SSCL) increased from Rs. 356 million to Rs. 396 million.

The bank’s total assets increased from Rs. 921 billion to Rs. 976 billion during 1H 2026, demonstrating a strong growth over the last six months. The bank actively pursued new-to-bank loans and deposits while retaining its existing customer base during 1H 2026. Loans and advances grew from Rs. 600 billion to Rs. 650 billion, while deposits increased from Rs. 733 billion to Rs. 771 billion. The bank’s Current Account Savings Account (CASA) ratio stood at 27%. 

As of 30 June 2026, the bank remained well-capitalised, with Capital Adequacy Ratios (CARs) comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 10.91%, while the Total Capital Ratio stood at 15.56%, 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 187.03% and 175.88%, respectively. 

Return on Equity (ROE) stood at 14.74% (2025: 15.89%) and Return on Average Assets (PBT) stood at 1.98% (2025: 2.31%) for the period under review. 

The bank’s Earnings per Share (EPS) stood at Rs. 9.57 in 1H 2026 compared to Rs. 8.63 reported in the comparative period. The bank’s Net Asset Value per Share stood at Rs. 132.87 as at 30 June 2026 (Group: Rs. 136.24).