Seylan Group post-tax profit of Rs. 5 bn, 24% rise from 2016
View(s):The Seylan Banking group has recorded a post-tax profit of Rs. 5 billion for fiscal 2017, the highest profit reported in its history, while the bank itself reported a post-tax profit of Rs. 4.4 billion.
Net interest income recorded a moderate growth of 15.03 per cent as a result of the strong balance sheet growth, the group said in a media release.
Net fee and commission income rose by 22.07 per cent to Rs. 3,788 million in 2017 mainly due to core banking related business.
“Other operating income comprising of net gains from trading, net gains on financial instruments, gains on foreign exchange and other income increased by 39.18 per cent to Rs.1,660 million during 2017 mainly due to capital gains on Government Securities,” it said. Net credit (advances) grew by 19 per cent to Rs. 280,862 million.
The bank also continued focusing on education which has been at the centre of attention of CSR activities. During the year, 33 school libraries were opened taking the overall number of libraries opened under the project to 153 under the “Seylan Pehesara” Project. Further the Seylan Bank initiated the Environmental and Social Management System (ESMS) as a means of prudently devising the loan book growth, mitigating credit, legal and reputational risks if any that are inherent with environmental and social impact that may arise from advances granted to Corporate and SME clients.
The branch network continued to be the key contributor to the bottom line.
In 2017, the bank network comprised 166 Banking Centres and 205 ATMs. The bank said it remains well capitalised with a strong common equity tier 1 ratio of 11.16 per cent, total tier 1 capital ratio of 11.16 per cent, and total capital adequacy ratio of 13.25 per cent under Basel III as at 31st December 2017.