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Seylan Bank 1H Pre Tax Profits up 142% to
Rs 2.01 B
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Chairman of Seylan Bank
Mohan Pieris
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Seylan Bank recorded an impressive 1 H performance with a Profit
after Tax of Rs 1.02 billion for the 6 months ended 30 June 2012. Profit
before VAT and Income Tax rose to Rs 2.01 billion, as opposed to Rs 832
million (before the exceptional VRS costs), a 142% growth over the
corresponding period last year.
The Bank's strong performance was driven by growth in its Core
Banking operations despite raising interest rates and controlled credit
growth.
Net Interest income increased by 15% to Rs 4,276 million in 1H 2012,
arising from selective growth in quality advances and effective
management of margins. The Bank's portfolio grew by 18% (annualised) in
the 6-months of the year. Non-interest income increased from Rs 1,171
million to Rs 1,237 million in the 6-months of 2012. The main
contributor to this was the growth in foreign exchange income which
increased by 20% over the corresponding period last year.
During the six months under review the bank focussed considerably on
controlling its overhead costs. The efforts on improving cost
efficiencies have resulted in the improvement of the cost to income
ratio to 67%, a reduction of 6% from December'11.
The Bank grew its deposit base by Rs 10.3 Billion despite a fiercely
competitive environment and due to sustained and effective recovery
strategies was able to reduce the NPA ratio (net of IIS) from 14.2% to
12.3%
General Manager/CEO Kapila Ariyaratne stated "these results prove
beyond doubt that the business expansion strategies backed by
improvement in operational processes and focus on customer service and
risk management are beginning to yield desired results, and now provides
us an excellent platform to achieve sustained growth and improved
profitability."
Preparing for future growth, the Bank has planned for a Debenture
issue via a private placement for early October 2012. The bank intends
to invest on identified key areas which are in line with the banks
future growth strategies including new product development, branch
expansion, service quality improvement, staff training and development
and IT infrastructure.
Chairman of Seylan Bank Mohan Pieris PC stated "that we are focused
on achieving our Strategic Plan which we formulated in the latter part
of last year. We have also taken steps to improve our Capital and
Governance Structure for future growth strategies that have been
planned." |