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Sri Lanka’s Seylan Bank Sept net marginally up with lower income tax charge

ECONOMYNEXT- Sri Lanka’s Seylan Bank’s net profits grew by a marginal 0.53 percent to 1.04 billion rupees in the September quarter with a lower charge on income taxes, interim financials showed.

The bank posted 2.75 rupees in earnings per share for the quarter, and 6.63 rupees in earnings per share for the nine months ended September. Seylan Bank’s share closed 20 cents up at 55.70 rupees on Monday.

Interest income for the quarter grew 15.30 percent to 14.3 billion rupees and interest expenses grew at a slower 14.82 percent to 9.2 billion rupees, leading net interest income to grow at a faster 16.17 percent to 5.1 billion rupees.

Net fee and commission income grew 13.74 percent to 1.1 billion rupees.

Net losses from trading/fair value losses from financial instruments fell 112.1 percent to a 60.78 million rupee loss, which was offset by other net operating income growing to 431.8 million rupees from a 103.3 million rupee loss.

Provisioning for bad loans grew 79.10 percent to 1.4 billion rupees.

The bank-level bad loans grew to 6.73 percent from 5.98 percent at the start of the year.

Pre-tax group profits fell 24.2 percent to 1.2 billion rupees, and the income tax charge for the quarter fell 67.5 percent to 190 million rupees, helping the bottom line.

Seylan Bank’s loan book grew 7.75 percent to 352.2 billion rupees at end-September from the start of the year nine months ago.

The growth in rupee credit was mostly through term loans, which grew 13.2 percent to 171.1 billion rupees.

Foreign currency loans grew mainly due to packing credit, up 15.5 percent to 9.9 billion rupees, and import revolver loans, up 177.7 percent to 1.1 billion rupees.

Deposits grew at a slower 5.36 percent to 376.7 billion rupees.

The group tier 1 capital adequacy ratio fell to 9.71 percent from 10.37 percent, against a minimum requirement of 8.50 percent.

Total capital ratio fell marginally to 13.32 percent against a 12.50 percent regulated requirement. (Colombo/Nov1/2019)

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