Sri Lanka’s Seylan Bank profits up in Dec after gratuity charge in 2018
ECONOMYNEXT- Net profits at Sri Lanka’s Seylan Bank Plc grew 80.78 percent to 1.18 billion rupees from a year earlier despite thin interest margins, as the firm recovered from a large additional gratuity charge in 2018, interim financials showed.
The Seylan group reported 2.65 rupees in earnings per share for the quarter. The group earned 8.99 rupees per share for the 12 months ended December. They Seylan share closed at 46.80 rupees on Monday.
The group reported 13.79 billion rupees in interest income for the December quarter, up 1.59 percent from a year earlier, while interest expenses fell 0.17 percent to 8.85 billion rupees, leading to net interest income growing 4.91 percent to 4.94 billion rupees.
Provisioning for bad loans grew 62.02 percent to 735.16 million rupees.
The bank loan book grew 16.02 percent to 379.26 million rupees at end-December from a year earlier on term loan expansions while bad loans at bank-level fell to 5.76 percent from 5.98 percent.
Deposits grew 12.07 percent to 400.73 million rupees.
Net fee and commission income grew 4.13 percent to 1.15 billion rupees.
The bank’s bottom line was helped mainly by additional gratuity expense falling 92.84 percent to 81.2 million rupees from a year earlier, when Seylan had to account for a large one-off charge.
The group tier 1 capital ratio grew to 11.49 percent from 10.37 percent against a minimum requirement of 8.5 percent, while total capital ratio improve to 15.02 percent from 13.40 percent against a minimum of 12.50 percent.
The bank raised 4.5 billion rupees in rights and 5 billion rupees in debentures in 2019 to improve its capitalization.
Net assets grew 27.95 percent to 46.38 billion rupees, while net assets per share fell 6.99 percent to 92.09 rupees. (Colombo/Feb25/2020)