Seylan Bank September net profit surges 97%

Meanwhile, the total other or income from non-core banking activities during the quarter showed a significant surge, recording Rs.1.44 billion against just Rs.106 million reported in the corresponding quarter of the previous year.The net trading income for t he quarter under review was Rs.606 million against an expense of Rs.56 million while net gains from financial investments stood at Rs.639.5 million against Rs.7.7 million.

Accordingly, the total operating income of the banking group surged 59 percent yoy to Rs.5 billion.The individual impairment for the quarter stood at Rs.658.3 million against Rs.555.6 million while collective i mpairment was Rs.303 million against an impairment reversal of Rs.125.7 million in the previous year. The bank was able to improve its asset quality with a reduction in its Gross NPA (net of IIS) from 10.58 percent in December 2013 to 9.85 percent as at September 30, 2014.

Meanwhile, the personal expenses during the quarter rose 23 percent yoy to RS.947.7 million. For the first 9 months of FY14, the banking group reported a net profit of Rs.2.26 billion, up 48 percent yoy. The net interest income rose 21 percent yoy to Rs.8.2 billion with interest expenses falling 17.5 percent yoy to Rs.9.4 billion. The bank reported a 2 percent credit growth to Rs.139.3 billion for the first 9 months. The total assets of the bank as at September 30, 2014 were Rs.229.3 billion.

The deposit base grew at rate of 4.42 percent to Rs.174.7 billion. The bank’s total capital adequacy ratio stood at 14.34 percent at the end of September 30, 2014, well above regulatory requirements. In October 2014, Fitch affirmed Seylan’s rating at ‘A-lka’ with a ‘stable’ outlook.