Seylan Bank continued its growth momentum by recording a Profit after Income of Rs. 2,828 million, for the nine months ended September 30, 2016.
This is a 3.6% increase over the Rs. 2,730 million reported for the corresponding period of 2015 and has been achieved despite rising interest rates.
Interest income grew by 33.7% driven by the sustained credit growth achieved by the Bank. Interest expenses increased at a faster pace of 59.5% during the year, thereby compressing margins.
Despite the drop in Margins, the bank posted a 7.9% growth in Net Interest income from Rs. 8,850 Million to Rs. 9,552 Million for the 9 months ended 30th September 2016 as a result of the strong balance sheet growth. Net fee and commission income witnessed a 17.8% robust growth from Rs. 1,869 Million to Rs. 2,202 Million during Q-3 2016 driven by fees from card acquisitions, trade finance and related fees. Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income decreased by 8.78% from Rs. 1,230 Million reported in 2015 to 1,122 Million during Q-3 2016 mainly as a result of mark- to-market losses on Government Securities, due to the upward movement in interest rates.
The Bank reported a significant net credit growth of 15.01%, with net advances growing from Rs. 193,104 Million to Rs. 222,083 Million during Q-3 2016. The NPA ratio increased marginally to 5.12% but is expected to improve by year end with strong remedial measures being implemented.
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