Seylan Bank records PAT of Rs. 866 mln, up 20% in 1Q2017
View(s):Seylan Bank made a ‘steady start in 2017 posting impressive results’ for Q1 with a post-tax profit of Rs. 866 million, up 20 per cent from Q1 2016 in the backdrop of uncertain market conditions, the bank said on Thursday.
The bank increased its Net Interest Income and recorded a growth of 20.97 per cent in spite of the mounting pressure on the margins due to rising cost of funds. However Net Interest Margin contracted from 4.19 per cent in 2016 to 3.92 per cent in 1Q 2017 due to cost of deposits increasing at a faster rate than the re-pricing of loans.
Net fee and commission income witnessed a healthy growth of 24.94 per cent to reach Rs. 869 million in 1Q 2017 as compared to Rs. 695 million for the comparative period.
The bank’s loans and advances portfolio recorded a marginal growth of 2.76 per cent to Rs. 242,531 million during the 1Q 2017 amidst rising interest rates. The overall deposit base recorded a marginal growth of 0.24 per cent to Rs. 274,120 million. The bank is currently working on opening libraries in areas such as Beliatta, Gampola, Jaffna, Kalmunai, Nelliady and Trincomalee covering all districts and raising the number to 250 by the year 2019.