Seylan Bank recorded an impressive growth in its Q1 2024 financial results as at 31 March 2024, with a Profit before Tax (PBT) of Rs. 3,704 million, marking a 115% increase compared to Q1 2023.
The Bank’s Profit After Tax (PAT) also witnessed a remarkable growth of 102%, standing at Rs. 2,295 Mn.Despite a challenging environment, Seylan Bank has reported a strong financial performance.
The Bank’s Net Interest Income decreased by 17.71%, from Rs. 11,388 Mn to LKR 9,371 Mn over the previous year. While the Net Interest Margin, also recorded a reduction from 5.76% in 2023 to 5.24% in Q1 2024. The Bank’s Net Fee-based Income recorded a growth of 3.62%.
The Bank’s Total Operating Income was at LKR 11,707 Mn, a decrease of 12.51% compared to the corresponding period of 2023, driven mainly by a reduction in Net Interest Income.
The Bank recorded an impairment charge of LKR 1,555 Mn in Q1 2024, a reduction of 75.57% over the corresponding period mainly due to enhanced credit quality and strengthening of recovery initiatives.
Total Operating Expenses recorded an increase of 15.42% from LKR 4,441 Mn to LKR 5,126 Mn for the 3 months ended 31st March 2024. Personnel expenses increased by 21.49% from LKR 2,237 Mn to LKR 2,718 Mn mainly due to increases in staff benefits based on the recently concluded collective agreement.
Income tax expenses surged 140.67% to LKR 1,409 Mn from LKR 585 Mn in the comparative period due to higher profits. Value Added Tax on Financial Services increased by 57.77% from LKR 735 million to LKR 1,160 Mn for the first three months of 2024. Additionally, Social Security Contribution Levy rose by 37.35% from LKR 117 Mn to LKR 161 million during the same period.
The Bank’s Total Assets were recorded at LKR 712 Bn as of March 31, 2024. Loans and Advances net of Impairment were recorded at LKR 427 Bn. Deposits reflected a marginal reduction to LKR 590 Bn. Local currency deposits increased by LKR 15.46 Bn, while foreign currency deposits contracted by LKR 16.61 Bn mainly due to local currency appreciation.
The Bank’s performance metrics have also showed improvement during the period under review. The Bank’s Asset Quality Ratios indicated an Impaired Loan (Stage 3) Ratio of 3.89% and Impairment (Stage 3) to Stage 3 Loans Ratio of 66.75%.
