Banking Trend

Feb 29, 2008 (LBO) – Sri Lanka’s Seylan Bank group full year profits grew four percent to 911 million but December quarter profits dipped amid lower loan growth, results released to the Colombo Stock Exchange showed. Fourth quarter net profit was down 58 percent to 89 million rupees compared with the same period last year.

The total performing loans of the bank as at December 31, 2007 was up four percent to 90 billion rupees with high interest rates making it difficult for companies and individuals to borrow.

The Seylan group net interest income rose 47 percent to four billion rupees for the December quarter and for the whole financial year grew 35 percent to 12 billion.

Foreign exchange income fell 36 percent to 200 million rupees for the fourth quarter against the same period a year ago while for the financial year as a whole was virtually flat at 604 million rupees.

Total group assets grew 11 percent to 157 billion rupees while the deposit base grew by 12 percent to 113 billion as at December 31, 2007.

Group interest income on loans and advances grew by 29 percent to 4.8 billion rupees for the December quarter and for the whole year rose 26 percent to 16.4 billion rupees.