Seylan Bank, first time in history, records post-tax profit of Rs 2 billion
View(s):Seylan Bank has reported a pre-tax profit of Rs 3.18 billion for the 12 months ended 31st December 2012, according to the results of the bank released on Friday, revealing also a historic post-tax profit.
“Post-tax profit surpassed Rs. 2 billion for the first time in its history recording Rs. 2.049 billion which is a 208 per cent increase compared to the Rs 665 million reported under SLFRS/LKAS Accounting Standards adopted this year,” the statement issued to the media by the bank said.
Despite controlled credit growth and industry wide pressure on interest margins, the net interest income increased by 4.76 per cent to Rs 9 billion for the period under review, resulting from selective growth in quality advances.
During the period under review the bank said it focused considerably on controlling its overhead costs. Many functions housed in buildings in and around Colombo were relocated to one central location. The efforts on improving cost efficiencies have resulted in direct improvements to bottom-line as evident this year, it said.
The bank grew its deposits base and net advances portfolio by Rs 22.7 billion and Rs 18.3 billion, respectively despite fierce competitive for deposits and a rising interest rate environment. The bank said it has also been able to improve its asset quality consistently since 2009 through focused, sustained and effective recovery efforts. Bank Chairman Nihal Jayamanne stated, “The results prove that our strategies have begun to yield the desired results and have provided us an excellent platform to achieve sustainable growth”.
During 2012, the bank opened 15 new branches/convenient centres, fully refurbished 17 branches / convenient centres and relocated several other branches to more customer friendly locations.
Preparing for future growth, the bank raised funds though a successful debenture issue in February that was over-subscribed on the opening day. “In the coming year the bank intends to invest on identified key areas which are in line with the bank’s future growth strategies including new product development, branch expansion, service quality improvement, staff training & development and IT infrastructure,” it said.
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