Seylan Bank June quarter profit increased 16.3% year-on-year to Rs. 3.21 billion, supported by stronger operating income, higher net interest earnings and continued growth in customer deposits despite higher impairment charges.
Seylan Bank June quarter profit reaches Rs. 3.21 billion on stronger operating income
Seylan Bank PLC reported a net profit of Rs. 3.21 billion for the quarter ended June 30, 2026, compared with Rs. 2.76 billion recorded during the same period last year. The improved financial performance reflects steady business growth, higher core banking income and a resilient balance sheet during the second quarter.
The Seylan Bank June quarter profit translated into earnings per share of Rs. 5.06, compared with Rs. 4.35 in the corresponding quarter of 2025. For the first six months of the financial year, the bank reported cumulative profits of Rs. 6.02 billion, highlighting continued momentum in its financial performance.
Total operating income increased 14.0% year-on-year to Rs. 13.29 billion during the June quarter. The improvement was primarily driven by growth in the bank’s core revenue streams. Net interest income rose 7.0% to Rs. 9.92 billion, reflecting healthy lending activity and stable interest margins, while net fee and commission income climbed 17.7% to Rs. 2.34 billion as transaction volumes and banking services expanded.
The latest results demonstrate the resilience of Sri Lanka banking institutions as economic conditions continue to stabilize and financial sector activity strengthens. Improved customer confidence, steady lending growth and increased banking transactions have contributed to stronger earnings across several financial institutions in recent quarters.
Despite the increase in revenue, Seylan Bank reported higher operating costs during the period. Total operating expenses rose 9.5% year-on-year to Rs. 6.20 billion, reflecting increased business activity and ongoing investments in operations and service delivery.
The bank also recorded a higher impairment charge of Rs. 632.4 million during the quarter, compared with Rs. 193.2 million in the June quarter of 2025. Although impairment provisions increased significantly, overall profitability remained strong due to higher operating income and improved business performance.
Balance sheet growth continued during the first half of the year. Total assets reached Rs. 976 billion as of June 30, 2026, while net loans and advances expanded to Rs. 650 billion. Customer deposits also increased to Rs. 771 billion, underlining continued depositor confidence and supporting the bank’s funding base for future lending activities.
Capital adequacy remained comfortably above regulatory requirements. Seylan Bank reported a total capital ratio of 15.56% and a Tier 1 capital ratio of 10.91%, reflecting a solid capital position to support future growth and absorb potential risks.
Asset quality also remained stable during the reporting period. The bank’s net impaired loans (Stage 3) ratio stood at 1.03%, supported by a strong Stage 3 provision coverage ratio of 85.26%. These indicators suggest prudent credit risk management despite a challenging lending environment and higher impairment expenses.
During the six-month period, the bank redeemed Rs. 6.0 billion worth of subordinated redeemable debentures that matured in April 2026, strengthening its liability management strategy while maintaining a healthy capital structure.
In another positive development, management noted that Fitch Ratings recently upgraded Seylan Bank’s national long-term rating to A+(lka) with a Stable Outlook. The upgrade reflects the bank’s improving financial profile and strengthened operating performance, providing additional confidence to investors and stakeholders.
The latest Seylan Bank June quarter profit results reinforce the bank’s steady financial position as it continues to strengthen earnings through core banking operations while maintaining healthy capital and asset quality indicators. With stronger operating income, sustained deposit growth and an improved credit rating, Seylan Bank appears well positioned to support future business expansion as Sri Lanka’s banking sector continues its gradual recovery.
Shares of Seylan Bank were trading 0.41% lower at Rs. 97.60 following the announcement of the quarterly financial results.