Seylan Bank closes year crossing Rs.500bn in total assets
Seylan Bank, in the backdrop of a challenging external environment, recorded a profit after tax of Rs.3.68 billion for the year ending December 2019, which is 15.4 per cent higher than last year.
The successful and oversubscribed Rights Issue made during the last quarter for Rs. 4.30 billion which followed a similarly successful debenture issue earlier in the year endorsed and demonstrated the confidence placed in the bank by the investors and shareholders, the bank said in a media release.
Net Interest Income ( NII), the main source of income representing more than 75 per cent of the total operating income of the bank, recorded an increase of Rs. 0.886 billion, up by 4.99 per cent during the period under review.
Operating Income of Rs.24.354 billion was 5.01 per cent higher than the previous year and reflects a growth in NII, Net Fee and Commission Income and other income.
Other income comprises a net loss from trading amounting to Rs. 1.459 billion over the previous year due to fluctuations in rates and volume, net gains/ (losses) from de-recognition of financial assets and other operating income.
Impairment charge for the year 2019 was Rs. 3.883 billion which is an 11.73 per cent increase over the last year. The impairment charge of loans and advances for the year amounted to Rs. 3.848 billion, compared to Rs. 3.516 billion in 2018.
Total operating expenses was Rs.12.606 billion during the year under review, whilst total operating expenses including VAT, NBT and DRL rose to Rs. 15.37 billion. Personnel costs increased by 12.28 per cent as head count, remuneration and staff development activities increased during the year.
The Government announced several tax amendments during latter part of 2019. Value Added Tax standard rate reduced from 15 per cent to 8 per cent for other than financial services with effect from 1 December 2019.
“The Debt Repayment Levy has been removed with effect from 2020 and this will have a favourable impact on the profitability of the bank in the future,” the release said.