Seylan Bank records staggering profit growth of 43% to post Profit after Tax of Rs 1.740 Billion during 1H 2015
Seylan Bank posted a record half-yearly performance with Profit before Income Tax reaching Rs. 2,579 Million for the 6 months ended 30th June 2015. Profits after Tax reached Rs. 1,740 Million a 43% increase compared to the Rs. 1,212 Million reported in the corresponding 6 month period in 2014.
The quarterly (Q-2 2015) Profit after Tax figure of Rs. 1,089 Million was an improvement of 56% compared with Rs. 698 Million reported in corresponding 3 months of last year.
Net Interest income increased from Rs. 5.16 Billion to Rs. 5.83 Billion a 13% increase for the 6 months ended 30th June 2015. Net fee and commission income increased by 13% from Rs. 1,055 Million to Rs. 1,191 Million with the bank showing a continuation of the solid growth trend recorded in the past few years.
During 1H 2015, the Net Advance portfolio grew from Rs. 155 Billion to Rs. 162.7 Billion, while the Deposit base grew from Rs. 185.9 Billion to Rs. 190.5Billion. The Bank’s low cost deposit base (CASA) stood at 38% as at end June 2015.
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 6.53% as at end June 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 under privileged schools. 70 such school libraries have been opened by the Bank, since 2013.
The Branch relocation and refurbishment project too continued in full steam during 1H 2015, with a view to enhance the customers’ service experience. As of end June 2015, over 75% of the branch network has been refurbished. As at 30th June 2015, the Bank network comprised of 159 Branches, 181 ATMs and 93 Student Savings Centres.
The Bank’s total Capital Adequacy ratio stands at 13.74% at the end of Q-2 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 were at Rs. 5.04 for Q-2 2015, while Return (profit before tax) on Assets and Return on Equity stood at to 2.03% and 14.52% respectively. The Bank’s Net Asset Value per share as at 30th June 2015 was Rs. 71.48 (Group Rs. 74.88).
