Seylan Bank closed the 9 months ending September 30, 2017 with a post-tax profit of Rs 3,002 million, a moderate growth of 6% over the corresponding period last year.
These results were impacted by provisions made on account of a legacy NPA, payment of which is due from the Compensation Tribunal.
Growth in advances coupled with the rise in interest rates enabled interest income to grow by 35% and interest expenses increased by 48% due to funds moving into higher yielding fixed deposits. Further impact on interest cost was partly cushioned by CASA base over Rs. 90 billion. As a result Net interest income recorded a commendable growth of 17.2 % to reach Rs. 11,376 million.
Net fees and commission income recorded an impressive growth of 25% for the period under review driven by core banking related transactional fees and net trading income recorded a gain (compared to mark to market losses in the prior period) due to favourable movements in the yields of the underlying Government Securities.
Total expenses increased by 14.8% from Rs. 7,146 million to Rs. 8,200 million and were fuelled by new investments in technology and human capital developments. Cost management initiatives coupled with the implementation of lean concepts across the Bank has aided in rationalising key cost lines.
The Bank reported a credit growth of 8.3 % increasing the advances from Rs. 236 billion to Rs. 255 billion while the deposit base grew from Rs. 273 billion to Rs. 295 billion during the nine months ended September 30, 2017. Bank CASA ratio stood over 30 %.
0 comments: