Seylan Bank's pre-tax profit exceeds Rs. 1.3 bn in 3Q

Seylan Bank PLC's unaudited financials for the third quarter 2007 indicated a pre-tax profit of Rs.1,312.01 mn achieving a notable growth of 39.27% in comparison to the previous year's third quarter.

The Bank's net profit after tax also grew to Rs. 794.44 mn, up by 26.69% over the comparable period's profit of Rs.627.08 mn in 2006. Similarly, pre-tax profits of the Seylan Group which comprises subsidiaries Seylan Merchant Bank Ltd, Ceylinco Seylan Development Ltd and Seylan Bank Asset Management Ltd also witnessed a notable boost of 34.98% reaching Rs.1,382.42 mn in the third quarter of 2007.

Further the Group's net profit after tax and minority interest improved from the previous year to Rs.821.94 mn, registering a 24.38% increase.

The Bank's improved profitability is attributed to an improvement in its traditional key revenue lines being net interest income (up 13.03%) and foreign exchange income (up 18.52%).

Profitability was further boosted by other income increasing 36.01% over the comparable period in 2006 due to gains on disposal of identified assets.

Additionally, the Bank through effective strategies recouped substantial writtenbacks on bad and doubtful debts of Rs.450.54 mn thereby boosting profitability.

This was in spite of new regulations imposed by Central Bank of Sri Lanka in December 2006 on general provisioning for which Rs.224.86 mn was made at the end of the third quarter of 2007.

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.980.39 mn accounting for 55.23% of operating profit before taxes including VAT on financial services.

The deposits and advances of the Bank registered a growth level of 7.10% and 6.84% respectively for the nine months ending September 30, 2007 a reflection of the healthy performance by the third quarter 2007.

Seylan Bank has been in the forefront of providing customer convenience to carefully identified segments. Seylan Bank's 114 branch network provides special counters to service Ceylinco FastCash recipients.

Its branches also provide extended banking hours during week days & Saturday or Sunday along with other banking related services to facilitate Ceylinco FastCash remittances.