August 17, 2007 (LBO) – Sri Lanka’s Seylan Bank June quarter profits surged 78 percent with revenues going up by 21 percent despite flat loan growth, interim results filed with the Colombo Stock Exchange showed. Group net profit after tax grew to 458.6 million rupees in the three months ended June 2007 from 257.7 million while revenues grew to 3,745 million rupees from 3,091 million.
Net interest income went up 9 percent to 1,718 million while other income improved sharply by 56 percent to 861 million rupees.
In the six months to June, consolidated net profits were up 21 percent to 671 million rupees.
Group assets grew three percent to 145.5 billion rupees from 141.0 billion rupees.
At bank level, net performing loans remained steady at 94.7 billion growing by a marginal 1.5 percent while equity grew 6 percent to 6.7 billion from 6.3 billion.
Analysts say Sri Lanka’s banks have shown good performance in the June quarter with loans being re-priced ahead of deposits.
Profits help boost capital levels of banks.
The Central Bank said in a statement Thursday that capital funds in the banking sector had increased by 21 billion or 13 percent giving a better cushion for risks.