Seylan Bank records Rs. 1bn PAT in 2021 Q1 despite COVID-19 challenges
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Bank Director/CEO Kapila Ariyaratne
Seylan Bank has made a steady start in 2021 by posting a Profit After Tax (PAT) of Rs.1 billion in Q1 2021 amidst macro-economic challenges brought in by the COVID-19 pandemic.
Interest income recorded a decline due to the lower interest rates and moderate book growth but net interest margin showed a marginal increase over the corresponding period in 2020 due to lower financing costs, the bank said in a media release.
Net Fee and Commission Income increased marginally to Rs. 1.2 billion from Rs. 1 billion, recording a YoY growth of 17.41 per cent due to enhanced trade and guarantee volumes compared to the previous year.
Total Operating Income grew by 22.25 per cent predominantly driven by net gains reported from de-recognition of financial assets which increased to Rs. 185.2 million from Rs. 69.6 million in 1Q 2020 and the other operating income increased by Rs. 858.8 million mainly due to increase in exchange income.
Overall, the bank recorded a Profit Before Tax (PBT) of Rs. 1.4 billion against Rs. 1.3 billion in 1Q 2020. Similarly, Profit After Tax (PAT) was recorded as Rs. 1 billion against Rs. 0.9 billion reported in 1Q 2020.
The bank achieved Rs. 562.7 billion in total assets as of 31 March 2021, resulting in 0.90 per cent growth compared to end December 2020.
The bank said it remained soundly capitalised, with the key capital adequacy ratios well above the regulatory minimum requirements and recorded 11.02 per cent as the bank’s Common Equity Tier 1 (CET 1) Capital Ratio/Total Tier 1 Capital Ratio and 13.59 per cent as the Total Capital Ratio.
The bank maintained its liquidity position above the required minimum ratios, during the quarter under review. The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Foreign Banking Unit were maintained at 29.84 per cent and 22.80 per cent respectively as at end of first quarter 2021.