Seylan Bank PLC has posted a net profit of Rs.509.5 million, up by 26 percent Year-on-Year, for the first quarter of the financial year 2013, the interim financial accounts released to the Colombo Stock Exchange showed.

The earnings per share for the quarter improved to Rs.1.51 from 1.20. The net interest income during the quarter grew 6.07 percent YoY to Rs. 2.16 billion while net fee and commission income rose 20 percent YoY to Rs. 460 million.

The bank grew its deposits base from Rs.146.7 billion to Rs.150.1 billion during the quarter and its net advances portfolio from Rs.124.7 billion to Rs.125.9 billion during the 3 months under review, despite fierce competition for deposits and a high interest rate environment.

The bank was also able to improve its asset quality through focused, sustained and effective recovery efforts. This enabled the bank to reduce its gross NPA by a further Rs.421 million during 1Q13.

Seylan’s total Capital Adequacy ratio stands at 14.08 percent at the end of the quarter under review.

The recent debenture issue of Rs.2 billion has not been included in the total capital adequacy computation for 1Q13, since Central Bank approval was obtained in April 2013.

Once these funds are included, Seylan’s total capital adequacy would exceed 15.5 percent, making it one of the highest on the local banking industry.