Financial Times

Seylan returns to stability with Rs 585 mln post-tax profit

Seylan Bank, struggling after the Ceylinco Consolidated crisis, has returned to stability with a post-tax profit of Rs. 585 million under the interim results reported for the first three quarters of 2009, the bank said adding that new directors will be brought in to further strengthen the board of directors following investments by new institutional investors.

Operating under its Central Bank of Sri Lanka-appointed new management, and, with the implementation of the new Strategic Plan, Seylan Bank has launched an aggressive recovery drive to reduce non-performing loans while concentrating on profitable areas and prudently managing expenditure, the bank said in a statement.

Its chairman Seylan Bank Eastman Narangoda said that the run on deposits experienced by the bank, after sections of its former parent company (Ceylinco) collapsed in December 2008 and the 1st quarter of 2009 is now history. “Since the new Board took over, we have been very transparent in all our dealings and have successfully restored investor confidence. Furthermore the faith and confidence the general public, the Sri Lankan diaspora and expatriate workers living and working overseas have in the newly structured Seylan Bank has increased tremendously. This has resulted in the Bank’s deposit base growing substantially. The increase during the past 10 months is Rs. 4 billion and it now stands at a record Rs. 104.694 billion”, he added.

With a Return on Assets (ROA) of 0.71% and Return on Equity (ROE) of 9.29%, the ROA and ROE ratios show an appreciable increase against 2008. The statutory liquid asset ratio also remains healthy and was above 22% as at 30 September 2009.

Last month, Seylan Bank launched a public share issue of 54,290,000 new ordinary voting shares at Rs. 35 per share. Concurrent to the public offer the Bank also placed an additional 32,150,000 Ordinary Voting Shares at Rs. 35 per share with Bank of Ceylon (BOC) and Sri Lanka Insurance Corporation (SLIC). The public share issue was successful and had to be closed six days early since it was over subscribed. The issue brought in additional capital base of around Rs. 3 billion which is expected to give the bank a strong balance sheet and enable future expansion, the statement said. As part of its expansion policy, the bank will soon open two branches in Mannar, Nelliady and two extension offices in Chankanai, and Manipay.

The directors of Seylan Bank are Mr Narangoda, R. Nadarajah (Executive Director), Nihal Jayamanne PC, Lalith Vithana, Naomal Goonewardena and Retd. Rear Admiral B. A. J. G. Peiris, all eminent professionals. This board will soon be further strengthened with new directors from the institutional investors.

 
Top to the page  |  E-mail  |  views[1]
 
Other Financial Times Articles
Commercial banks to follow state banks
Ceylinco Chief free under strict bail conditions
No need for support package if GSP + is withdrawn – CB
CHMI/Aitken Spence submits final offer in port project
Tigo to change name, launch 3G
Standard Chartered CEO Clive Haswell transferred
COMMENT - Rate cuts: The good, bad and the ugly
Challenges facing public listed company directors
Practical guide to labour law
Oil exploration in the Mannar Basin
Business community calls for profiles of ‘ideal’ leaders
Schneider Electric creates awareness on energy conservation
FCCISL to host SAARC Business Leaders’ Conclave
Seminar on ‘Managing in tough economic conditions’ for printers
Letter - Urgent need to return to rule of law
World Spice Food Festival to add spice to Sri Lanka
GTB Colombo steps in to meet steel demand for construction
Sri Lanka’s Munchee Biscuits to China
Exports seen rising despite GSP Plus issue-CB
Hayleys MGT posts healthy first half profit growth
LB Finance increases net profit
Caltex supports visually handicapped graduates
Dr Amal Uthum Herat – a rare intellect
Southern expressway -Like driving in a foreign land
ILO says countries with better collective bargaining have fewer strikes
Shareholders funds help JKH profitability
Court action against Alufab Ltd
Treasury Secretary on comeback trail
Lankan chambers welcome reduction in bank interest rates
Depositors dismayed over income drop
Interest rate cut boosts stocks
Bulgarian Presidential trade delegation to be hosted by FCCISL
Seylan returns to stability with Rs 585 mln post-tax profit
8% of Sri Lankan students study abroad – University don
Wijeya Newspapers wins award for cleaner production
Polls, trade benefits add to share market woes
Foreigners eye Rajaratnam’s stakes
Interest rates: Govt. needs to sustain low regime

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution