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Seylan Bank's post tax profits for the year 2002 was Rs. 668 million which was more than double when compared with the profits of the previous year and the highest in its history.

This dramatic improvement in Seylan Bank's performance was mainly attributed to good management practices, improved client base and utilisation of low cost funds.

This resulted in a steady growth in net interest income, which amounted to Rs. 3.1 billion, an increase of 38% over the last year.

Additionally the Bank skillfully managed its portfolio investments in Treasury Bills/Bonds taking advantage of the reduction in government security rates, thereby earning substantial capital gains. When analysing the core business the financial statements reflect a turnover of Rs. 8.99 billion, which is an increase of 6.1% over the previous year, consequent to improved economic performance and the progress of the peace process during the year.

The Bank invested heavily in development of Information Technology, thereby enabling the 'On-Line' linkage of all the 92 branches across the island and enabling customers to transact business from any service location through multi-channel strategies irrespective of the branch in which they hold their accounts.

The further enhancements to the Electronic Banking Service and Credit and Debit Card products had a positive impact on the business.

The Bank also opened two main branches in the North and East, three convenient Banking Centres and a Customer Service Centre at the CWE outlet in Colombo during the year 2002. Customers of the Bank will be able to utilise 62 automated teller machine facilities installed in branches and at other convenient locations. In order to strengthen the Balance Sheet and as a prudential measure, the Bank also made loan loss provision of Rs. 749 million reflecting an increase of 96% over the previous year.

The Bank's advance portfolio had grown by 14.6% to Rs. 44.4 billion while deposits of the Bank also grew at the rate of 9.6% to reach a deposit base of 52.4 billion by the end of 2002, in keeping with its budgeted targets.

With the enhanced profits, recorded to date, the Bank's earnings per share was at a healthy Rs. 15.2 per share and was up by a notable Rs. 8.94 per share, when compared with Rs. 6.26 per share in the year 2001.

The market value of Seylan Bank shares as at December 31, 2002 was Rs. 52 per share when compared with the market value of Rs. 26 per share as at December 31, 2001 reflecting a 100% increase during the year, which confirms the investors' confidence, the bank said.

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Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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