adaderana52d ago
Profit before Income Tax – LKR 4.5 Bn up by 8.31% Profit after Tax – LKR 2.9 Bn up by 5.25% Total Assets reach LKR 943 Bn Return on Equity (ROE) of 14.39% Impaired Loans (Stage 3) Ratio at 1.01% The Bank recorded a Profit Before Income Tax (PBT) of LKR 4,548 Mn in Q1 2026, against LKR 4,199 Mn reflecting a growth of 8.31%. For the three months ended 31 st March 2026, Profit after Tax recorded by Seylan Bank was LKR 2,906 Mn with a growth of 5.25% against LKR 2,761 Mn recorded in the corresponding period of 2025. Statement of Financial Performance Net interest income increased from LKR 8,587 Mn to LKR 9,734 Mn, an increase of 13.37% over the previous year for the 3 months ended 31 st March 2026 mainly due to the significant growth in bank’s assets base over the last 12 months from LKR 785 Bn as end of Q1 2025 to LKR 943 Bn as at 31 st March 2026. The Bank’s Net Interest Margin (NIM) also moderated from 4.50% in 2025 to 4.23% during Q1 2026. Meanwhile, the Bank’s net fee-based income recorded a growth of 24.04%, increasing from LKR 1,863 Mn to LKR 2,311 Mn, primarily driven by fee income from Cards, Remittances, Trade, and other financial services. Other income captions comprising of net gains / losses from trading, net gains from derecognition of financial assets and net other operating income, reflected a reduction mainly due to decline in mark to market gains from government securities and equity investments with the prevailing market interest rates and price movements, however exchange income showed an increase, due to higher forex trade volumes. The Bank’s total operating income was recorded as LKR 12,375 Mn, an increase of 12.57% compared to LKR 10,994 Mn recorded in the corresponding period of 2025, driven mainly by the increase in net interest income, net fee and commission income. Total operating expenses increased by 19.40%, rising from LKR 5,135 Mn in Q1 2025 to LKR 6,131Mn in Q1 2026. Personnel expenses grew by 15.41%, from LKR 2,806 Mn to LKR 3,238 Mn, primarily due to annual revision to staff-related costs. Other operating expenses, including depreciation and amortization, increased by 24.21%, reflecting higher prices of consumables, card related expenses and other related services over the period. The Bank continues to implement targeted cost optimization initiatives to manage expenses efficiently. The Bank recorded an impairment charge of LKR 100 Mn in Q1 2026, lower than LKR 225 Mn in Q1 2025 with a reduction of 55.57%. The Bank has ensured Impairment provisions are made prudently to reflect changes in the global and local economy, customer credit risk profiles, and the overall credit quality of the Bank’s loan portfolio, ensuring adequacy of provisions recognized in the financial statements. The Bank’s asset quality ratios demonstrated continued strength, with the Impaired Loan (Stage 3) Ratio at 1.01% (2025: 1.03%) and the Stage 3 Provision Cover Ratio at 86.23% as at 31 March 2026, among the highest in the banking industry. Income tax expenses for Q1 2026 amounted to LKR 1,643 Mn, compared to LKR 1,438 Mn reported for Q1 2025. Value Added Tax (VAT) on Financial Services increased from LKR 1,260 Mn to LKR 1,402 Mn and Social Security Contribution Levy (SSCL) increased from LKR 175 Mn to LKR 195 Mn, marking a 11.25 % increase over the corresponding period. The Bank recorded a Profit After Tax (PAT) of LKR 2,906 Mn during Q1 2026, reflecting a growth of 5.25% compared to the corresponding period in 2025. Statement of Financial Position The Bank’s total assets increased from LKR 921 Bn to LKR 943 Bn during Q1 2026, reflecting steady growth over the previous quarter. The Bank actively pursued new-to-bank loans and deposits while retaining its existing customer base. Loans and Advances grew to LKR 628 Bn and deposits rose to LKR 743 Bn. The Bank’s CASA ratio was maintained at 28%. Key financial ratios and indicators As of 31 March 2026, Bank remained well-capitalized, with capital adequacy ratios comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 11.40%, while the Total Capital Ratio stood at 16.38%, reflecting a strong capital base. The Bank maintained the Liquidity Coverage Ratio (LCR) well above the statutory requirement. All Currency LCR Ratio and the Rupee LCR Ratio were maintained at 192.49% and 188.30% respectively. The Return on Equity (ROE) stood at 14.39% (2025 – 15.89%) and Return on Average Assets (profit before tax) stood at 1.98% (2025 – 2.31%) for the year under review. The Bank’s Earnings per Share stood at LKR 4.57 in Q1 2026 compared to LKR 4.34 reported in previous year. The Bank’s Net Assets Value per Share stood at LKR 128.86 as at 31 March 2026 (Group – LKR 132.17). During Q1 2026, Seylan Bank expanded its flagship CSR initiative by opening 2 “Seylan Pahasara Libraries”, bringing the total number of libraries established to 291. This milestone underscores the Bank’s continued commitment to fostering education and supporting underprivileged schools across the island by improving access to knowledge and learning resources. The National Long-Term Rating of Seylan Bank, was upgrade by two notches to A+(lka) with a Stable Outlook by Fitch Ratings in 2025.
