Seylan Bank has announced robust financial results for the first quarter of 2024, ending on March 31st. The bank reported a substantial increase in Profit before Tax (PBT), reaching Rs. 3,704 million, marking a remarkable 115% growth compared to the same period in 2023. Similarly, the Profit After Tax (PAT) saw significant growth, soaring by 102% to Rs. 2,295 million. Despite operating in a challenging environment, Seylan Bank’s financial performance has remained strong.
While the bank’s Net Interest Income experienced a decline of 17.71% from the previous year, standing at Rs. 9,371 million, its Net Fee-based Income grew by 3.62%. The Total Operating Income of the bank was reported at LKR 11,707 million, indicating a decrease of 12.51% compared to the corresponding period in 2023, primarily due to a reduction in Net Interest Income. Additionally, the bank recorded an impairment charge of LKR 1,555 million in Q1 2024, showcasing a significant reduction of 75.57% over the same period last year, attributed to improved credit quality and enhanced recovery initiatives.
Operating Expenses for the first three months of 2024 increased by 15.42% to LKR 5,126 million, with Personnel expenses rising by 21.49% mainly due to increased staff benefits as per the recently concluded collective agreement. Income tax expenses surged by 140.67%, reaching LKR 1,409 million, reflecting higher profits. Furthermore, Value Added Tax on Financial Services increased by 57.77%, and Social Security Contribution Levy rose by 37.35% during the same period. The bank’s Total Assets stood at LKR 712 billion, with Loans and Advances net of Impairment at LKR 427 billion and deposits marginally reducing to LKR 590 billion, with notable shifts in local and foreign currency deposits attributed to currency fluctuations. The bank’s Asset Quality Ratios also showed improvement, indicating a healthy performance during the period under review, with an Impaired Loan (Stage 3) Ratio of 3.89% and Impairment (Stage 3) to Stage 3 Loans Ratio of 66.75%.