Seylan Bank 1H PAT Exceeds Rs 1.2 b

Seylan Bank recorded an impressive performance with profit before income tax reaching Rs 1,863 million for the six months ended June 30,2014. Profits after tax reached Rs 1,213 million a 21% increase compared to the Rs 1,002 million reported in the corresponding six month period in 2013.

The quarterly PAT figure of Rs. 698 million was an improvement of 41% compared with Rs 497 million reported in corresponding three months of last year.

Net Interest income increased from Rs 4.27 billion to Rs 5.16 billion a 21% increase for the six months ended June 30, 2014. Net fee and commission income increased by 8% from Rs 973 million to Rs 1,056 million with the bank showing a continuation of the solid growth trend recorded in the past few years. During 1H 2014, the Bank grew its deposit base from Rs 167.4 billion to Rs 172.7 billion. The growth was predominately achieved through the mobilisation of current and savings deposits, which enabled the Bank's low cost deposit base to increase from 33% in December 2013 to over 35% as at end June 2014. However, the Bank's Net Advance portfolio reduced from Rs 136.5 billion to Rs 133.1 billion during the six months under review, due to slower than expected credit growth in the industry and the impact of lower gold prices

The branch relocation and upgrading project too continued in full steam during 1H 2014, with a view to enhance the customers' service experience. In July 2014, a further 19 Convenient Banking Centres with limited operations were upgraded to full Branch status. As at June 30 2014, the Bank network comprised of 151 Branches, 162 ATMs and 92 Student Savings Centres. The Banks total Capital Adequacy ratio stands at 15.27% at the end of Q-2 2014, well above the regulatory requirements.

As a result of the impressive performance, Earnings per share was at Rs 3.51 for Q-2 2014, while Return (profit before tax) on Assets and Return on Equity stood at to 1.70% and 11.06% respectively. 

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