Retail
Subscription
to Advertise
  • ISSUES
    • 1996 to 1999
      • 1996
        • May 1996
        • June 1996
        • July 1996
        • August 1996
        • September 1996
        • October 1996
        • November 1996
        • December 1996
      • 1997
    • 2000 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • March 2007
        • April 2007
        • May 2007
        • July 2007
        • August 2007
        • September 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • April 2008
        • May 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • October 2008
        • November 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • January 2012
        • February 2012
        • March 2012
        • April 2012
        • May 2012
        • June 2012
        • July 2012
        • August 2012
        • September 2012
        • October 2012
        • November 2012
        • December 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • September 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • June 2018
        • July 2018
        • August 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2023
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • January 2021
        • February 2021
        • March 2021
        • April 2021
        • May 2021
        • June 2021
        • July 2021
        • August 2021
        • September 2021
        • October 2021
        • November 2021
        • December 2021
      • 2022
        • January 2022
        • June 2022
        • February 2022
        • July 2022
        • March 2022
        • April 2022
        • August 2022
        • May 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • July 2023
        • April 2023
        • May 2023
        • June 2023
        • July 2023
        • August 2023
        • September 2023
        • October 2023
        • November 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40
      • BT Top 40 2021 – 2022
    • BT Top 30
      • BT Top 30 2015 – 2016
      • BT Top 30 2016 – 2017
      • BT Top 30 2017 – 2018
      • BT Top 30 2018 – 2019
    • BT Top 25
      • BT Top 25 2011 – 2012
      • BT Top 25 2012 – 2013
      • BT Top 25 2013 – 2014
      • BT Top 25 2014 – 2015
    • BT Top 20
      • BT Top 20 2009 – 2010
      • BT Top 20 2010 – 2011
    • BT Top 10
      • BT Top 10 2008 – 2009
      • BT Top 10 2007 – 2008
      • BT Top 10 2006 – 2007
      • BT Top 10 2005 – 2006
      • BT Top 10 2003 – 2004
      • BT Top 10 2000 – 2001
      • BT Top 10 1999 – 2000
      • BT Top 10 1998 – 1999
      • BT Top 10 1997 – 1998
      • BT Top 10 1996 – 1997
      • BT Top 10 1995 – 1996
  • ABOUT US
No Result
View All Result
Business Today
No Result
View All Result

Seylan Records Growth

in Featured, March 2021
0
image_pdfDownload as PDF

In the backdrop of an extremely challenging environment, Seylan Bank recorded a Profit After Tax (PAT) of three billion rupees for the year ended December 31, 2020.

  Interest Income of the Bank stood at 52.3 billion rupees while interest expenses stood at 32.8 billion rupees reflecting a Net Interest Income (NII) of 19.5 billion rupees with an annual growth of 4.6 percent in the year under review. The main contributor for NII was the loans and advances portfolio that generated interest income of 41.7 billion rupees during the year whilst the treasury operations generated 8.5 billion rupees in interest income.

  Interest expenses on deposits stood at 27.8 billion rupees recording a decline from 30.7 billion rupees from the previous year. Deposits that were repriced during the year helped the Bank to reduce its funding cost. Net Interest Margin (NIM) of the Bank declined to 3.95 percent against 4.20 percent reported in FY2019, as the loan book repriced at a faster rate than the deposits. This also offset the positive impact from the growth in low cost deposits. Net Fee and Commission Income reduced to 3.7 billion rupees from 4.2 billion rupees, recording a YoY contraction of 11.89 percent. The reduction was mainly due to the lower volume of foreign trade related activities and banking operations by businesses retailers. Total Operating Income growth of 4.36 percent predominantly aided by treasury trading activities, which improved from a loss of 497 million rupees in 2019 to a gain of 348 million rupees in FY 2020. Further, net gains reported from de-recognition of financial assets increased to 782 million rupees from 320 million rupees from FY2019 sustained the operating income growth and other operating income reduced by 600 million mainly due to contraction of traderelated activities during the year. Bank recorded an impairment charge of 6.9 billion rupees against 3.9 billion rupees reported in 2019 with a growth of 80 percent. Impairment charges for Stage III advances increased from 3.9 billion rupees to 5.7 billion rupees during the year due to the impact of COVID-19 pandemic on businesses. Further, businesses that were identified as risk elevated industries too contributed to the increase in impairment. Impairment on Stage I and II also grew from 103 million rupees to 628 million rupees and reversal of 246 million rupees to charge of 359 billion rupees respectively. Simultaneously, Impairment on other financial instruments and assets also went up by 290 million, mainly due to downgrading of the credit rating attributed to foreign currency bond holdings. The overall impairment improved the provision cover ratio to 43.68 percent as of December 31, 2020. Total Operating Expenses of the Bank slightly increased by 1.40 percent compared to FY2019. Establishment expenses reduced marginally from six billion rupees recorded in FY2019 to 5.9 billion rupees in FY2020. This was mainly driven by selective investments made on prioritized projects and cost containment initiatives adopted during the year. The Bank continuous commitment to improve processes and workflows via business process reengineering, automating repetitive tasks, and improving digitizing systems and channels together with ongoing cost-saving initiatives contributed to this reduction.

  The Bank’s Cost to Income ratio, which stood at 50.3 percent as at the end of 2020 has decreased when compared to FY2019. VAT on Financial Services reduced by 5.73 percent in align to the Bank’s performance despite the increase in personnel cost by 4.82 percent. The Nation Building Tax (NBT) and the Debt Repayment Levy (DRL) that were in 2019 were abolished during 2019, reflecting a positive change to the income statement. Income tax expenses stood at 1.3 billion rupees, which reduced to 1.1 billion rupees due to subsequent elimination of temporary differences in Deferred Tax.

  Overall, the Bank recorded a Profit Before Tax of 4.1 billion rupees against 5.10 billion rupees in FY2019 demonstrating a 19.37 percent decline. Similarly, Profit After Tax was three billion rupees against 3.6 billion rupees reported in FY2019. This reflected a YoY reduction of 18.19 percent. Bank achieved 557 billion rupees total assets as of December 31, 2020, a 8.02 percent growth compared to the December 31, 2019. Overall, the Bank’s gross loans grew by 19.3 billion rupees, recording a five percent growth compared to December 2019 to stand at 409.3 billion rupees as at December 2020. Disbursement of loans under the Saubagya Scheme to help the pandemic affected businesses was a key focus and accounted for a significant component of the new loans disbursed. Managing asset quality in the prevailing economic climate was a key challenge, as this had to be accomplished while assisting customers to sustain their businesses amidst the unprecedented negative impact of the pandemic on businesses.

  The difficult external factors contributed to a deterioration of the portfolio quality with the Gross NPL ratio increasing to 6.43 percent from 5.76 percent in 2019.

  Total deposit base grew by 39.6 billion rupees to 440.3 billion, a 9.87 percent increase compared to the previous year mainly delivered by the internal campaign “Heroes of Heart” launched in 2020. The Bank’s CASA base grew to 145.4 billion rupees, achieving a notable growth of 28 percent, which improved the CASA ratio to 33 percent as of December 2020.

  The Bank maintains a sound capital adequacy ratio despite the growth of the risk weighted assets. Bank’s Common Equity Tier 1 (CET 1) Capital Ratio & Total Tier 1 Capital Ratio recorded as 11.46 percent and Total Capital Ratio recorded 14.30 percent as at December 2020. Bank maintained its liquidity position above the required minimum ratios, during year under review. The Statutory Liquid Asset Ratio for the Domestic Banking Unit and the Foreign Banking Unit were maintained at 31.31 percent and 22.47 percent respectively as of December 2020. The Return on Equity stood at 6.43 percent for the year under review, compared to 9.29 percent recorded in 2019. Return on Average Assets recorded as 0.56 percent in 2020. Earnings per Share in 2020 stood at 5.82 billion rupees, a reduction compared to the 8.70 rupees recorded in the previous financial year, and net assets value of share recorded at 94.71 (Group 98.20 rupees).

Business Today December 2023

business-today-logo

  • Privacy Policy
  • Terms & Conditions

© 2023 BT Options. All Rights Reserved

No Result
View All Result
  • ISSUES
    • 1996 to 1999
      • 1996
      • 1997
    • 2000 to 2009
      • 2006
      • 2007
      • 2008
      • 2009
    • 2010 to 2019
      • 2010
      • 2011
      • 2012
      • 2013
      • 2014
      • 2015
      • 2016
      • 2017
      • 2018
      • 2019
    • 2020 to 2023
      • 2020
      • 2021
      • 2022
      • 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40
      • BT Top 40 2021 – 2022
    • BT Top 30
      • BT Top 30 2015 – 2016
      • BT Top 30 2016 – 2017
      • BT Top 30 2017 – 2018
      • BT Top 30 2018 – 2019
    • BT Top 25
      • BT Top 25 2011 – 2012
      • BT Top 25 2012 – 2013
      • BT Top 25 2013 – 2014
      • BT Top 25 2014 – 2015
    • BT Top 20
      • BT Top 20 2009 – 2010
      • BT Top 20 2010 – 2011
    • BT Top 10
      • BT Top 10 2008 – 2009
      • BT Top 10 2007 – 2008
      • BT Top 10 2006 – 2007
      • BT Top 10 2005 – 2006
      • BT Top 10 2003 – 2004
      • BT Top 10 2000 – 2001
      • BT Top 10 1999 – 2000
      • BT Top 10 1998 – 1999
      • BT Top 10 1997 – 1998
      • BT Top 10 1996 – 1997
      • BT Top 10 1995 – 1996
  • ABOUT US

© 2023 BT Options. All Rights Reserved