“Seylan in merger talks with NDB”
Tilan Wijeyesekera, Deputy General Manager – Marketing and Personal Banking, Seylan Bank PLC has sent in the following statement denying the Business Times story under the above heading which appeared last week. His letter is as follows:
“I regret to inform you that the above mentioned article is incorrect. Seylan Bank is NOT engaged in merger talks with National Development Bank PLC or any other entity at present. As you may understand this claim by the Business Times has caused a great deal of confusion and negative repercussions among the Bank’s customers, investors, staff and the general public of Sri Lanka. Since ours is a public quoted company, as a result of the article we called for an urgent meeting of the board of directors and we were compelled to issue a release to the Colombo Stock Exchange (CSE) on Tuesday 08 March 2016, stating that the Bank is NOT engaged in merger talks with the National Development Bank PLC or any other entity at present.
In a release to the CSE on 8th March 2016, Seylan Bank stated that the Bank is not engaged in merger talks with National Development Bank PLC or any other entity at present.
Seylan Bank has, over the last 5 years delivered a consistent and impressive performance ending with a remarkable 2015 and accordingly, the Board was of the view that the Bank has robust and sustainable growth potential to continue to deliver optimal stakeholder value.
Based on the audited financial statements released to the CSE on 3rd March 2016, the Bank reported a Profit after Tax of Rs. 3.83 billion (5-year CAGR of 25.53%), with a ROE of 15.62% and a ROA (after tax) of 1.4% for 2015. The Bank reported a Net Credit growth of 24.61%, with net advances growing from Rs. 154,963 Million in 2014 to Rs. 193,104 Million in 2015.
The Bank also grew its deposit base by 20.76% from Rs. 185,924 Million to Rs. 224,525 Million in 2015. The Bank’s low cost deposit base comprising current & savings accounts (CASA) stood at 36% of the total deposit base as at end December 2015.
As at 31st December 2015, the Bank network comprised of 159 Branches and 182 ATMs. The Bank’s total Capital Adequacy ratio stood at 12.87%, of which the Tier 1 ratio stood at 12.24% 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. As a result of the impressive performance, Earnings per share was at Rs 11.11 (Group Rs. 11.18) for 2015, while the Bank’s Net Asset Value per share as at 31st December 2015 was Rs 72.63 (Group Rs 76.21).”
The NDB, in a statement to the CSE on Tuesday in reference to the said report, stated:
“As disclosed to the Colombo Stock Exchange (CSE) on March 17, 2015, the National Development Bank Plc (NDB) and its group companies held 9.53 per cent of the total voting share capital of Seylan Bank Plc (Seylan) as at the said date. Subsequently NDB purchased further shares which resulted in the NDB Group holding 9.8 per cent of the total voting share capital of Seylan.
While confirming that the NDB Group holds 9.8 per cent at date, we wish to clarify that the said investment has been classified as “Available for Sale” in the Books of the NDB. We wish to state that as at this point in time, there are no further developments warranting disclosure to the CSE in terms of Section 8 of the Listing Rules of the CSE and that we will take the necessary steps to do so, if and when necessary in terms of the said Rules”.
Business Times: Our reporter stands by the story.