Seylan ups Pre Tax Profit in 1st quarter of 2007
NOTABLE GROWTH: Seylan Bank’s unaudited 1st quarter 2007
financials indicated a pre-tax profit of Rs.424.75 Mn achieving a
notable growth of 13.72% over the previous year’s comparative period.
The Bank’s net profit after tax was Rs. 205.82 Mn, a reduction of
23.34% of the previous year due to higher corporate taxes. The
financials also saw Seylan Group which comprises of subsidiaries Seylan
Merchant Bank Ltd, Ceylinco Seylan Developments Ltd and Seylan Bank
Asset Management Ltd recording a net profit after tax and minority
interest of Rs.212.59 Mn in the 1st quarter 2007.
The Bank’s total income indicated a notable growth of 14.87% reaching
Rs.2.15 Bn mainly on account of its net interest income, growing at
15.26% over same period of 2006. This was achieved as a result of the
Bank reaching a Rs.100 Bn mark on its deposits and in turn paving way
for expansion in core business.
Further the Bank achieved this net profit after tax despite the
negative impact of the two tiered taxation of VAT on financial services
and corporate taxes had on its profits. Both VAT and corporate taxes
totalled Rs.418.51 Mn accounting for 67.03% of operating profit before
taxes including VAT on financial services.
It is also noteworthy to mention that the management focus on
recovery of dues through effective strategies that resulted in
substantial written backs and recovery of B&D Debts of Rs.187.36 Mn
boosted the Bank’s profitability. This was in spite of new regulations
focusing on general provisioning for which Rs.75 Mn was made in the 1st
quarter 2007.
During the period under review, the unique selling proposition of the
Tikiri Minor Savings Scheme, which is its gifts structure was
re-structured with exciting new gifts and new slabs and re-launched.
In addition, the children also have the opportunity of choosing from
a greater variety of gifts at each slab.
As guided by its Chairman, Deshamanya Dr. Lalith Kotelawala, the Bank
also organised an Under 13 Cricket Tournament among the schools in which
the bank’s Student Savings Centers are maintained.
Thirty six schools participated in the 50 over tournament which
created a lot of excitement among the participating teams and spectators
with St. Anthony’s College Kandy and Mahanama College Colombo entering
the finals and St. Anthony’s emerging as the Champions to be awarded the
inaugural “Seylan Tikiri Diamond Cricket Trophy”.
Seylan Bank’s NRFC Scheme also saw its “Thilina Saurra” benefits
being enhanced by a host of new value additions such as payment of
claims upto Rs. 50,000/- on lost baggage, weekend packages for two at
Hotel Ceysands, reimbursement of SLBFE Charges and a pre-departure loan.
Ceylinco FastCash, the International Money transfer service, which
commenced operation during the latter part of last year covering UAE,
Singapore and Sri Lanka has successfully spread its reach during the 1st
quarter of this year to cover UK, Lebanon, Oman and Kuwait through over
300 agent locations.
The key feature of this remittance service is the loyalty card known
as “WishCard” . The “WishCard” has a unique number that will be the
customer identification number in the system. One of the features
provided by the “WishCard”is the instant advice of the money transfer to
the beneficiary via SMS.
The facility also provides for the sender to be informed by SMS once
the beneficiary receives the funds. Seylan Bank, principal agent of
Ceylinco FastCash is equipped with special counters to provide
recipients an unmatched service with its Millennium branch at the
Ceylinco Seylan Towers also providing a 24 hour 7 days a week human
interface to those urgently in need of funds.
Remitters are entitled to a quarterly draw and cash prizes worth Rs
two million are on offer. Housing loans and flexible loans for
miscellaneous requirements are also available to the remitter. |
