Seylan Bank and its Group reported a strong growth momentum with its performance for the six months ended 30 June 2017. Seylan group recorded a net profit after tax of Rs. 2,310 Million for the period which is an increase of 32% compared to the prior year corresponding period.
Seylan Bank closed the first 6 months ending 30th June 2017 with a post-tax profit of Rs.1,805 Million a growth of 2.87% compared to Rs.1,755 Million over 1H 2016. The Bank was able to record a moderate growth in core banking activities for the first six months despite challenging business environment and prudential impairment provisions on legacy NPAs.
The Bank will reach year on year growth of Profit After Tax over 21% if not for the impairment made on legacy NPAs that was made due to the delay experienced in settlement of dues by the Compensation Tribunal and another payment to be received as a secured creditor with the liquidation of entity concerned .
Net interest income increased from Rs. 6,147 Million to Rs. 7,265 Million, an 18.19% increase for the 6 months ended 30th June 2017 resulting from selective growth in advances and effective pricing strategy. Nevertheless Interest expenses increased at a faster pace of 53.26% during the period under review, thereby compressing margins. Net fees and commission income grew across a spectrum of fee based products and services by 23.83% for the period under review to Rs.1,773 Million in 1H 2017.
Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income increased by 46.08% from Rs. 611 Million in 2016 to Rs.892 Million during 1H 2017 mainly as a result of mark-to-market gains on Government Securities, due to the favorable movements in interest rates. Decrease in foreign trade transactions resulted in Bank recording a substantial decrease in net exchange income of 20%.
Total expenses increased from Rs.4,676 Million to Rs.5,421 Million during 1H 2017, mainly due to increase in investments made in employees, technology, upgrading and refurbishment of branches etc.
The Bank reported a net credit growth of 2.97%, with net advances growing from Rs. 236 Bn in Dec 2016 to Rs. 243Bn during 1H2017. During 1H 2017 the overall deposit base grew from Rs. 273 Bn in December 2016 to Rs. 280 Bn and the CASA ratio stood at 31.
buy fildena online buy fildena online no prescription
Overall, as a result of the performance during the six months, Bank’s Earnings Per Share (EPS) stood at Rs 5.16. The Bank recorded a Return (Net profit before tax) on Average Asset (ROAA) of 1.37% and Return on Equity (ROE) of 12.55%. The Bank’s Net Asset Value per share as at 30th June 2017 was Rs 85.40 (Group Rs 89.87).
Seylan Bank has achieved a historic milestone by successfully securing a long term funding facility of $ 75 million through Development Finance Institutions (DFIs). These funds were raised in order to enhance Small and Medium Enterprises lending in the Bank which is one of the key area of focus in the Bank’s 2017-2020 strategic plan.
The Bank’s core capital and total capital adequacy ratio remained strong at 10.42% and 12.67% respectively as at 30th June 2017, as against the statutory minimum. In October 2016 Fitch reviewed the Bank’s rating and reaffirmed the Bank’s rating at ‘A-lka’ with a ‘stable ‘outlook in January 2017.
As at 30th June 2017, the Bank network comprised of 166 Banking Centres, 6 CDMs and 203 ATMs. Seylan Bank also continued its CSR initiatives focusing on education and accelerated its libraries project for under privilege schools.
During the period of six months ended in 2017, 11 more school libraries were opened taking the overall number of libraries opened under the project to 131. Apart from the opening new libraries the Bank is investing in refurbishing and upgrading the existing libraries.
The Bank has developed a new strategic plan that will take the Bank forward to 2020 with aim to expand branch network and growth in CASA, adoption of digital channels, boosting the bancassurance sales, redesign SME operational model etc and is in the process of rolling out the plan. These will be the key areas of focus for Seylan Bank as we look towards concluding yet another rewarding year.