Seylan keen to venture abroad
View(s):Seylan Bank after a record Profit after Tax figure of Rs. 3,831 million for the year ended 31st December 2015, is eyeing the possibility of expanding overseas next year, a top official said. ”Myanmar and Vietnam are on the radar, but this will be thought about next year,” Kapila Ariyaratne, CEO Seylan told the Business Times. During the year under review the bank also focused considerably on cost containment, which was evident by the containment of growth in expenses of 6.36 per cent from Rs. 8,109 million in 2014 to Rs. 8,625 million in 2015, he said adding that Seylan has introduced retail and corporate segments in the last financial year.
“We introduced personal loans and credit cards in the retail segment and wholesale banking, trade financing and a project financing arm,” Mr. Ariyaratne said adding their digital products (Internet) were enhanced. The slow credit growth evident in the first half of the year was reversed in the latter half with growth momentum picking up in the third and fourth quarters of 2015 and the bank reported a net credit growth of 24.61per cent with net advances growing form Rs. 154,963 million in 2014 to Rs. 193,104 million in 2015, a media statement said.
During 2015, the bank grew its deposit base by 20.76 per cent from Rs. 185,924 million to Rs. 224,525 million with Seylan’s low cost deposit base comprising current and savings accounts (CASA) stood at 36 per cent of the total deposit base as at end December 2015. Seylan’s total Capital Adequacy ratio stands at 12.87 per cent, of which the Tier – 1 ratio stands at 12.24 per cent at the end of 2015, both well above the regulatory requirements. In July 2015, Fitch affirmed the Bank’s rating at ‘A-lka’ with a ‘stable’ outlook. The Net Interest income increased from Rs. 11,165 million to Rs. 11,825 million, a 5.9 per cent increase for the 12 months ended 31st December 2015.