Seylan Bank closed the nine months ending September 30, 2019 with a post-tax profit of Rs. 2,554 million, a marginal increase of 1% over the corresponding period last year.
Growth in advances coupled with the rise in interest rates enabled interest income to grow by 16.77% and interest expenses increased by 22.28%. As a result, Net interest income recorded a growth of 7.20% to reach Rs. 13,987 million.
Net fees and commission income recorded a slight growth of 4.54 % for the period under review. This was mainly attributed to card related income and guarantee related income during the period under review. Other income captions comprising net losses from trading activities, net fair value gains of financial instruments, net gains on foreign exchange transactions and other operating income were reported as a net gain of Rs. 1,144 million compared to net gain of Rs. 1,008 million in 3Q 2018 mainly as a result of upward movement in exchange income, despite a decrease in Mark to Market gains on Derivatives Financial Instruments.
Total expenses increased by 8.68% from Rs. 8,885 million to Rs. 9,657 million and were fueled by new investments in technology where the focus is given to enhance the digital banking services and upgrading and refurbishment of branches / head office departments.
The Bank continued to focus on widening the roll-out of lean initiatives, workflow methods and automation across the bank operations in order to keep the cost under control.
The Bank’s profit before taxes (PBT) was negatively impacted by the debt repayment levy of Rs. 706 million for the nine months ended September 2019 which was not in existence in the corresponding period of 2018.
0 comments: