(PRESS RELEASE) – Seylan group reported a resilient performance by recording a Profit after tax of Rs.5,004 Million for the year ended 31st December 2017, which is the highest profit reported in its history.
Seylan Bank also continued its growth momentum by achieving a profit after tax of Rs. 4,430 Million during the period under review.
Net interest income recorded a moderate growth of 15.03% as a result of the strong balance sheet growth. Net interest Margin stood at 4.24%.
Net fee and commission income witnessed a 22.07% robust growth from Rs. 3,103 Million to Rs. 3,788 Million during 2017. This was mainly attributed from core banking related business.
Other operating income comprising of net gains from trading, net gains on financial instruments, gains on foreign exchange and other income increased by 39.18% from Rs. 1,192 Million reported in 2016 to Rs.1,660 Million during 2017 mainly due to capital gains on Government Securities.
Total Expenses recorded an increase of 11.90% from Rs. 9,725 million to Rs. 10,882 million. Expenses growth was witnessed by a higher proportion of investments being made towards branch upgrading and refurbishments, continuous development in human resources and technology which resulted in the underlying expenses increasing rapidly over the previous period.
The Bank reported a net credit growth of 19%, with net advances growing from Rs. 236,020 Million to Rs. 280,862 Million during 2017. CASA growth slowed down with a notable shift from low cost to fixed deposits seen mainly due to increasing interest rates. As a result Bank’s CASA ratio (current & savings accounts) stood at 31.20% and total Time Deposits increased from 67.48% by end of year 2016 to 68.80% as at 31st December 2017 of the total deposit base. The overall deposit base recorded a growth of 12.30% from Rs. 273,456 Million by end of 2016 to Rs. 307,099 Million by 31st December 2017.
As a result of the strong performance during the year, Bank’s Earnings per Share (EPS) grew by 10.47% to Rs. 12.58.
The Bank recorded a Return on Average Asset (ROAA) of 1.74% and Return on Equity (ROE) of 14.30%. The Bank’s Net Asset Value per share as at 31st December 2017 was Rs. 96.50 (Group Rs 101.08).