Seylan Bank 2Q boosted by lower impairment charges

Seylan Bank PLC reported improved financial performance for the quarter ended June 30, 2023 (2Q23) amid a sharp drop in impairment provisions, the interim financial accounts released to the Colombo Stock Exchange showed.

The banking group reported earnings of Rs.2.40 per share or Rs.1.47 billion for the quarter under review compared to earnings of 79 cents or Rs.488.8 million reported for the corresponding period of the previous year.
The banking group’s impairment charges fell by 60 percent year-on-year (YoY) to Rs.3.19 billion.
The net interest income for the quarter fell 9.6 percent YoY to Rs.9.1 billion as net interest expenses rose 98.5 percent YoY to Rs.18 billion.

Interest margin for the quarter under review was 6.04 percent compared to 6.33 percent six months ago. 
Net fee and commission income rose 30 percent YoY to Rs.1.7 billion.
As at June 30, 2023, the banking group’s total assets stood at Rs.689.1 billion, up 2.43 percent six months ago.
For the six months ended June 30, 2023, the bank reported 5.3 percent de-growth in loans to Rs.420.5 billion from six months ago.

The bank’s bad loans ratio (stage 3) rose to 6.28 percent from 4.98 percent six months ago.

The deposit base recorded a marginal 0.25 percent growth to Rs.548.6 million.

Seylan Bank’s capital adequacy ratios remain well above the regulatory minimum requirements.