Sri Lanka’s Seylan Bank profits marginally up in June despite provisions

ECONOMYNEXT – Profits at Sri Lanka’s Seylan Bank Plc group grew 1.1 percent to 669 million rupees in the June 2020 quarter with interest expense falling and higher loan loss provisions amid a loan contraction, interim accounts showed.

The group reported earnings of 1.30 rupees for the quarter. In the six month to June the group reported earnings of 3.07 rupees on total profits of 1.58 billion rupees which grew 6.6 percent.

Fee and commission income was down 35 percent to 640 million rupees.

Trading gains rose to 206 million rupee from a loss of 10 million last year.

In the June quarter group interest income grew 3.57 to 13.2 billion rupees and interest expenses fell at a faster 8.3 percent to 8.5 billion rupees, allowing net interest income to grow 6.37 percent to 4.7 billion rupees.

Loan losses grew 35 percent to 1.54 billion rupees. Stage 3 accumulated impairments rose to 10.8 billion rupees from 9.4 billion rupees.

Loans contracted to 378.5 billion rupees in June from 379.0 billion in March 2020. Loans contracted 0.19 percent in the first six months of the year.

At bank level gross non-performing loans grew to 6.81 percent in June from 5.76 percent in December.

Total equity grew 5.4 percent to 48.9 billion rupees.

Tier 1 capital was 11.06 percent, down from 11.27 percent but above the required 8.5 percent. Total capital adequacy was 14.2 percent down from 14.8 percent, above the required 12.5 percent.

Gross assets grew 1.8 percent to 526 billion rupees. (Colombo/July31/2020)