Seylan Bank retains momentum in Q1 2022

Seylan Bank PLC has recorded a Profit After Tax (PAT) of Rs. 1.1 billion in Q1 2022, maintaining its forward momentum in a period of volatile macroeconomic challenges.

The bank capitalised on its strong fundamentals with capital adequacy ratios well above regulatory requirements; whilst ensuring its liquidity position remained above the required minimum ratios during the quarter, maintaining the Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Foreign Banking Unit at 23.32 per cent and 22.65 per cent respectively, it said in a media release.

This, along with a strong Net Interest Income (NII) of Rs. 6.8 billion, recording a growth of 22.51 per cent in the period under review, ensured that Seylan Bank perseveres through macroeconomic challenges to retain its forward momentum in the first quarter of 2022.

Seylan Bank recorded a total operating income growth of 21.80 per cent amounting Rs. 9.1 billion during the period under review compared to Rs. 7.5 billion in the correspondent year. The bank’s net gain from trading recorded Rs. 3.6 billion in 1Q 2022 mainly due to an increase in Net Gain on Derivatives Financial Instruments.

The growth in credit was driven primarily by Term loans, Overdrafts and Packing Credits. Seylan Bank’s overall deposit base recorded a growth of 5.52 per cent to Rs. 515.6 billion in the period under review with the Bank’s CASA ratio (Current and Savings) at 34.24 per cent.

Commenting on Seylan Bank’s performance in the first quarter of 2022, Kapila Ariyaratne, Director/Chief Executive Officer, Seylan Bank PLC said, “Sri Lanka underwent massive upheavals in the quarter under review. As the country seeks to stabilise its position amidst an unprecedented crisis, Seylan Bank has done well to maintain its momentum despite the challenges it faced, achieving Rs. 643.1 billion of Total Assets as of 31 March 2022, resulting in 5.85 per cent growth compared to 31 December 2021. We have managed to keep expense growth at a minimal level by focusing on lean initiatives and automation across the bank and rationalising expenditure on key controllable cost lines”.