Seylan Bank and its Group reported a strong growth momentum with its performance for the six months ended June 30, 2017.
The Seylan group recorded a net profit after tax of Rs. 2,310 Million for the period which is an increase of 32% compared to the prior year corresponding period.
Seylan Bank closed the first six months ending June 30, 2017, with a post-tax profit of Rs.1,805 million a growth of 2.87% compared to Rs.1,755 million over 1H 2016. The Bank was able to record a moderate growth in core banking activities for the first six months despite challenging business environment and prudential impairment provisions on legacy NPAs. The Bank will reach year-on-year growth of Profit After Tax over 21% if not for the impairment made on legacy NPAs that was made due to the delay experienced in settlement of dues by the Compensation Tribunal and another payment to be received as a secured creditor with the liquidation of entity concerned. Net interest income increased from Rs. 6,147 million to Rs. 7,265 million, an 18.19% increase for the six months ended June 30, 2017, resulting from selective growth in advances and effective pricing strategy.
Nevertheless, interest expenses increased at a faster pace of 53.26% during the period under review, thereby compressing margins.
Net fees and commission income grew across a spectrum of fee-based products and services by 23.83% for the period under review to Rs.1,773 million in 1H 2017.
Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income increased by 46.08% from Rs. 611 million in 2016 to Rs.892 million during 1H 2017 mainly as a result of mark-to-market gains on Government Securities, due to the favorable movements in interest rates. Decrease in foreign trade transactions resulted in the Bank recording a substantial decrease in net exchange income of 20%.Total expenses increased from Rs.4,676 million to Rs.5,421 million during 1H 2017, mainly due to increase in investments made in employees, technology, upgrading and refurbishment of branches, etc.
www.dailynews.lk
The Seylan group recorded a net profit after tax of Rs. 2,310 Million for the period which is an increase of 32% compared to the prior year corresponding period.
Seylan Bank closed the first six months ending June 30, 2017, with a post-tax profit of Rs.1,805 million a growth of 2.87% compared to Rs.1,755 million over 1H 2016. The Bank was able to record a moderate growth in core banking activities for the first six months despite challenging business environment and prudential impairment provisions on legacy NPAs. The Bank will reach year-on-year growth of Profit After Tax over 21% if not for the impairment made on legacy NPAs that was made due to the delay experienced in settlement of dues by the Compensation Tribunal and another payment to be received as a secured creditor with the liquidation of entity concerned. Net interest income increased from Rs. 6,147 million to Rs. 7,265 million, an 18.19% increase for the six months ended June 30, 2017, resulting from selective growth in advances and effective pricing strategy.
Nevertheless, interest expenses increased at a faster pace of 53.26% during the period under review, thereby compressing margins.
Net fees and commission income grew across a spectrum of fee-based products and services by 23.83% for the period under review to Rs.1,773 million in 1H 2017.
Other operating income comprising net gains from trading, gains on financial instruments, gains on foreign exchange and other income increased by 46.08% from Rs. 611 million in 2016 to Rs.892 million during 1H 2017 mainly as a result of mark-to-market gains on Government Securities, due to the favorable movements in interest rates. Decrease in foreign trade transactions resulted in the Bank recording a substantial decrease in net exchange income of 20%.Total expenses increased from Rs.4,676 million to Rs.5,421 million during 1H 2017, mainly due to increase in investments made in employees, technology, upgrading and refurbishment of branches, etc.
www.dailynews.lk
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