Seylan Bank records Rs. 188m profit in six months

The interim results released by Seylan Bank for the six months ended June 30, 2009 show an after tax profit of Rs. 188 mn. for the Seylan Group - 138 Mn. of the profit coming from the Bank.

With an EPS of Rs. 4.5, the results show a remarkable improvement over the first quarter of the year. The reduction of expenses by over 20 percent, from Rs 4 bn for the corresponding period in 2008, indicates that the bank has effectively tightened its grip on expenditure.

The provision of Rs. 296 mn. for non-performing advances from the past period has affected the Bank's current bottom line. However, under the prevailing economic conditions where most banks are experiencing a drop in profits, Seylan Bank's progress on the road to full recovery is quite noteworthy.

After several setbacks faced in December '08 caused by the failures in the Ceylinco Group, Seylan Bank now seems to be firmly on the road to recovery. The Bank is now headed by a new Board of Directors appointed by the Central Bank of Sri Lanka. Chairman Eastman Narangoda said that Seylan Bank is not controlled by the Ceylinco Group any more and that the new Board has lost no time in reorganizing the management of the Bank.

Executive Director R. Nadarajah, said that the efforts of the new management spearheaded by Chairman E. Narangoda had regained the confidence of depositors which was shaken due to the bank's previous connections with the Ceylinco group.