Sri Lanka’s Seylan Bank PLC reported a 90% increase in net profits, reaching 3.51 billion rupees in Q4 2024, driven by a reversal of provisions related to the country’s international sovereign bond (ISB) restructuring. The bank recorded earnings of 5.52 rupees per share for the quarter.
The impairment reversal from the Sri Lanka International Sovereign Bond (SLISB) exchange amounted to 4.9 billion rupees, a significant jump from 54.5 million rupees in Q4 2023. Interest income declined by 15.3% to 20.62 billion rupees, while interest expenses fell faster by 24.8% to 11.1 billion rupees, leading to a slight 0.6% dip in net interest income at 9.54 billion rupees.
Despite economic challenges, Seylan Bank expanded its loan portfolio by 6%, reaching 463 billion rupees. Gross non-performing loans improved to 2.10% from 3.85% in the previous year, while Tier 1 capital rose to 14.50%, exceeding regulatory requirements.