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Seylan Bank Chairman Ravi Dias[/caption]
Seylan Bank has announced a steady start in 2021 by posting a Profit After Tax (PAT) of Rs. 1 billion in Q1 (first quarter) of the present year, amidst macro-economic challenges brought in by the Covid-19 pandemic.
As per the Statement of Financial Performances, the interest income recorded a decline due to the lower interest rates and moderate book growth, however, the net interest margin showed a marginal increase over the corresponding period in 2020 due to lower financing costs.
Also, net Fee and Commission Income increased marginally to Rs. 1.2 billion from Rs. 1.0 billion, recording a YoY (Year-on-Year) growth of 17.41% due to enhanced trade and guarantee volumes compared to the previous year.
The Total Operating Income growth of 22.25%, predominantly driven by Net gains reported from derecognition of financial assets, increased to Rs. 185.2 million from Rs. 69.6 million in Q1 2020.
Other operating income increased by Rs. 858.8 million, mainly due to increase in exchange income. On the flip side, trading activities reported a loss of Rs 611.4 million, mainly due to market loss on derivatives which contracted the operating income YoY growth.
The bank also recorded an impairment charge of Rs. 2.2 billion during the period under review against Rs. 1.1 billion reported in Q1 2020 with a growth of 94.53% attributed to provisioning policy adopted.
Total Operating Expenses recorded Rs. 3.4 billion in Q1 2021 compared to the Rs. 3.3 billion in 1Q 2020. Seylan Bank also continued to focus on widening the roll-out of lean initiatives and automation across the bank and rationalising expenditure on key controllable cost lines.
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Seylan Bank Director/CEO Kapila Ariyaratne[/caption]
Overall, the bank recorded a Profit Before Tax (PBT) of Rs. 1.4 billion against Rs. 1.3 billion in 1Q 2020. Similarly, Profit After Tax (PAT) was recorded as Rs. 1.0 billion against the Rs. 0.9 billion reported in 1Q 2020.
As per the Statement of Financial Position, the bank achieved Rs. 562.7 billion of Total Assets as of 31 March 2021, resulting in 0.90% growth compared to the 31 December 2020.
Loans and advances portfolio of the bank recorded a marginal growth of 1.51% to Rs. 399.7 billion during the 1Q 2021 amidst of challenges faced. Also, the growth in credit was driven primarily by term loans, and retail products such as leasing and pawning.
Furthermore, NPL ratio improved marginally to 6.39% against 6.43% reported as at last year’s end. Thereby, the bank is reported to monitor and strengthen the recovery process in order to bring under control and minimise the impact of the NPL.
The overall deposit base recorded a marginal growth of 1.28% to Rs. 445.9 billion by 1Q 2021 compared to Rs. 440.3 billion. Seylan Bank’s CASA ratio (Current and Savings) stood at 34.52%.
Seylan Bank Chairman Ravi Dias[/caption]
Seylan Bank has announced a steady start in 2021 by posting a Profit After Tax (PAT) of Rs. 1 billion in Q1 (first quarter) of the present year, amidst macro-economic challenges brought in by the Covid-19 pandemic.
As per the Statement of Financial Performances, the interest income recorded a decline due to the lower interest rates and moderate book growth, however, the net interest margin showed a marginal increase over the corresponding period in 2020 due to lower financing costs.
Also, net Fee and Commission Income increased marginally to Rs. 1.2 billion from Rs. 1.0 billion, recording a YoY (Year-on-Year) growth of 17.41% due to enhanced trade and guarantee volumes compared to the previous year.
The Total Operating Income growth of 22.25%, predominantly driven by Net gains reported from derecognition of financial assets, increased to Rs. 185.2 million from Rs. 69.6 million in Q1 2020.
Other operating income increased by Rs. 858.8 million, mainly due to increase in exchange income. On the flip side, trading activities reported a loss of Rs 611.4 million, mainly due to market loss on derivatives which contracted the operating income YoY growth.
The bank also recorded an impairment charge of Rs. 2.2 billion during the period under review against Rs. 1.1 billion reported in Q1 2020 with a growth of 94.53% attributed to provisioning policy adopted.
Total Operating Expenses recorded Rs. 3.4 billion in Q1 2021 compared to the Rs. 3.3 billion in 1Q 2020. Seylan Bank also continued to focus on widening the roll-out of lean initiatives and automation across the bank and rationalising expenditure on key controllable cost lines.
[caption id="attachment_132783" align="alignright" width="202"] Seylan Bank Director/CEO Kapila Ariyaratne[/caption]
Overall, the bank recorded a Profit Before Tax (PBT) of Rs. 1.4 billion against Rs. 1.3 billion in 1Q 2020. Similarly, Profit After Tax (PAT) was recorded as Rs. 1.0 billion against the Rs. 0.9 billion reported in 1Q 2020.
As per the Statement of Financial Position, the bank achieved Rs. 562.7 billion of Total Assets as of 31 March 2021, resulting in 0.90% growth compared to the 31 December 2020.
Loans and advances portfolio of the bank recorded a marginal growth of 1.51% to Rs. 399.7 billion during the 1Q 2021 amidst of challenges faced. Also, the growth in credit was driven primarily by term loans, and retail products such as leasing and pawning.
Furthermore, NPL ratio improved marginally to 6.39% against 6.43% reported as at last year’s end. Thereby, the bank is reported to monitor and strengthen the recovery process in order to bring under control and minimise the impact of the NPL.
The overall deposit base recorded a marginal growth of 1.28% to Rs. 445.9 billion by 1Q 2021 compared to Rs. 440.3 billion. Seylan Bank’s CASA ratio (Current and Savings) stood at 34.52%.