Seylan Bank records Rs. 6.59 Bn. PAT

Seylan Bank recorded a profit after tax of LKR 6,593 million for the 9 months ended September 30, 2024 with a growth of 46.65% against LKR 4,496 million reported in the corresponding period of 2023 despite a challenging environment.

Seylan Bank recorded a profit before tax (PBT) of LKR 10,608 million for the 9 months ended September 30, 2024 against LKR 7,181 million reported in the corresponding period of 2023 demonstrating a growth of 47.72%.

Net Interest income decreased from LKR 30,554 million to LKR 27,262 million, a reduction of 10.77% compared with the previous year for the 9 months ended September 30, 2024, corresponding to reduction in Net Interest Margin from 5.76% in 2023 to 5.03% in Q3 2024. The Bank’s net fee based income recorded a growth of 8.10% from LKR 5,392 million to LKR 5,829 million during 9 months ended 30 September 2024, mainly due to increase in income from Cards, Remittances and other services relating to lending.

The Bank’s total operating income was at LKR 34,264 million, a decrease of 8.32% compared to LKR 37,373 million recorded in the corresponding period of 2023, driven mainly by the contraction of net interest margins during 2024. Total Operating Expenses recorded an increase of 13.20% from LKR 13,846 million to LKR 15,674 million for the 9 months ended September 30, 2024.

Personnel expenses increased by 1,068 million mainly due to increase in the staff benefits based on the collective agreement. Other Operating expenses (excluding depreciation and amortization expenses) too increased by 12.75% due to increase in prices of consumables and services over the period. The Bank recorded an impairment charge of LKR 4,150 million during the 9 months ended September 30, 2024 against LKR 13,447 million reported in corresponding period of 2023 with a reduction of 69.14%, mainly due to enhanced credit quality and strong recovery initiatives.

The impairment charge on Loans and Advances amounts to LKR 4,189 Mn (2023 – LKR 11,912 Mn) and impairment reversal on other instruments LKR 39 Mn (2023 – 1,535 Mn) for the 9 months ended 30 September 2024.

Income tax expenses stood at LKR 4,015 Mn which is a 49.51% increase over the comparative period, which stood at LKR 2,685 Mn due to increase in profits. Value Added Tax on Financial Services increased for the 9 months from LKR 2,544 Mn to LKR 3,365 Mn in 2024 which is 32.28% over the corresponding period in 2023.

Social Security Contribution Levy increased for the nine months from LKR 355 Mn to LKR 467 Mn in 2024 which is a 31.70% increase over the corresponding period in 2023. Overall, the Bank recorded a Profit before Income Tax (PBT) of LKR 10,608 million in 9 months ended 30 September 30, 2024, against LKR 7,181 Mn reported in the corresponding period in 2023 demonstrating a growth of 47.72%. Similarly, Profit after Tax (PAT) was recorded as LKR 6,593 Mn in the 9 months ended 30 September 2024 with a growth of 46.65% over the corresponding period in 2023.

The Bank’s Total Assets were recorded at LKR 734 Bn as of September 30, 2024. Loans and Advances net of Impairment were recorded at LKR 442 Bn.