Sri Lanka’s Seylan Bank June net flat
ECONOMYNEXT – Profits at Sri Lanka’s Seylan Bank group barely grew 1.04 percent to Rs1,062 million in the June 2016, from a year earlier, amid a sharp rise in interest expense, interim accounts showed.
The group reported earnings of Rs3.08 per share for the quarter. For the six months to June, the group reported earnings of Rs5.03 per share on total profits of Rs1.73 billion, which also grew 1.21 percent.
In the June quarter, interest income grew 33 percent to Rs8.0 billion, but interest expenses grew at a faster 62 percent to Rs4.82 billion. Net interest income grew at a slower 5.8 percent to Rs3.2 billion.
Fee and commission income grew 17 percent to Rs735 million.
In the six months to June, customer loans grew 7.5 percent to Rs207 billion.
Non-performing loans grew to Rs5.8 billion from Rs5.7 billion. The non-performing ratio however fell to 4.63 percent from 4.68 percent at bank level. After provisions, it was down to 3.03 percent from 3.06 percent.
Core capital adequacy fell to 11.20 percent from 12.48 percent. Total capital adequacy fell to 11.58 percent from 13.08 percent.
Financial investments (available for sale) grew fell 4 percent to Rs46.1 billion.
Financial investments (held to maturity) rose 32 percent to Rs24.2 billion. Marked-to-market losses are avoided in the held-to-maturity portfolio.
Overdrafts showed the sharpest growth to Rs55 billion from Rs49.5 billion in December. (Colombo/Aug01/2016)