SEYLAN BANK PLC With change and disruption engulfing us in 2022, we moved ahead powered by human ingenuity demonstrated by our team supported by breakthrough innovation. We at Seylan Bank are in sync with these waves of changes. We transformed and adapted to a digital-first environment by adapting and evolving to create new paradigms of value.
We remain resolute and focused on strengthening our balance sheet and risk management parameters whilst investing in new technology, and process efficiencies to build a future-ready bank thus creating enduring value for all our stakeholders.
CONTENTS
About this Report | 01
Seylan Bank Story | 02
Key Financial Highlights | 03
Chairman's Message | 04
Message from Director/
Chief Executive Officer | 06
OUR VALUE
CREATION STORY
Value Creation Model | 10
Stakeholder Engagement for Long Lasting Relationships | 12
Materiality Driving Stakeholder Value Creation| 14 Economic Overview | 16
Investor Resilience with Financial Stability| 20 Seamless Customer Service | 26
Step in to Our Digital Future | 34 Empowering Employees | 38 Our Business Partners | 50 Supporting Environmental Protection| 56 Harmonised with the Community | 62 Business Unit Performance | 67 Sustainability Performance Indicators | 71 Independent Assurance Report - Sustainability | 73
SUSTAINABLE
STEWARDSHIP
Board of Directors | 76
Senior Management Team | 81 Corporate Governance | 86
Report of the Board Audit Committee | 111
Report of the Board Human Resources and Remuneration Committee | 113
Report of the Board Nomination Committee | 115
Report of the Board Integrated Risk Management Committee | 116
Report of the Related Party Transactions Review Committee | 118
Directors' Statement on Internal Control | 119
Independent Assurance Report - Internal Control | 121
Report of the Board of Directors on the State of Affairs of the Company | 122
Annexure to the Report of the Board of Directors on the State of Affairs of the Company | 130
Risk Management | 133
SUSTAINABLE RESULTS
Financial Calendar | 157
Statement of Directors' Responsibility for Financial Reporting | 158
Chief Executive Officer's and Chief Financial Officer's Responsibility Statement | 159
Independent Auditor's Report | 160
Income Statement | 165
Statement of Profit or Loss and Other
Comprehensive Income | 166
Statement of Financial Position | 167 Statement of Changes in Equity | 168 Statement of Cash Flows | 172 Notes to the Financial Statements | 174
ANNEXURES
Statement of Comprehensive Income in US Dollars | 272
Statement of Financial Position in US Dollars | 273 Investor Information | 274
Branch and ATM Network | 279 Ten Years at a Glance | 280
Summary of Performance Indicators | 281 Geographical Analysis | 282
Global Reporting Initiative (GRI) Content Index | 283 Alphabetical Index | 290
Glossary | 291
Sinhala Translation of Chairman's Message
(iNdm;s;=udf.a mKsúvh) | 294
Tamil Translation of Chairman's Message
(jiytupd; nra;jp) | 295
Corporate Information | 296
1 | SEYLAN BANK PLC | |
A n n u a l R e p o r t 2 0 2 2 | ||
ABOUT THIS REPORT
Seylan Bank is pleased to present its tenth Integrated Annual Report for the calendar year of 2022
The theme for the Annual Report 2022, 'In Sync to Create Enduring Value' resonates strongly with our commitment to deliver sustainable value across our diverse groups of stakeholders. This has been our core purpose which has shaped our journey thus far.
As always, we have been a constant source of inspiration and a guiding force of strength to all our stakeholders during this challenging phase. As we pivot to be a technologically transformed Bank with a strong customer- centric mandate, we are committed to uphold the highest standards of transparency and accountability to maintain the trust garnered over the years.
Scope and Boundary of Reporting
Reporting Period
The Annual Report 2022 covers the 12-month period from
1 January to 31 December 2022 and is consistent with the annual reporting cycle for financial and sustainability reporting. Any material events after this date and up to the Board approval date of 22nd February 2023 have also been included. There are no significant changes from previous reporting periods in the scope and aspect boundaries. The most recent Annual Report covered the 12-month period ended 31 December 2021. Comparative
financial information, if re-classified or re-stated, has been disclosed and explained in the relevant sections.
Reporting Boundary
The content of this Report does not cover the activities of its subsidiary, Seylan Developments PLC, which produces its own Annual Report. This Report presents material information on economic, social and environmental performances of Seylan Bank PLC in respect of the reporting period.
Compliance
Both financial and non-financial information contained in this Report comply with applicable rules and guidelines stipulated by the Central Bank of Sri Lanka, the Companies Act No. 07 of 2007, Listing Rules of the Colombo Stock Exchange and the Institute of Chartered Accountants of Sri Lanka.
Sustainability Reporting Framework
In addition, this Report includes details of the Bank's relationship with its key stakeholders in creating sustainable value and these are described in the relevant sustainability sections. The Bank's Report is based on the Global Reporting Initiative Sustainability Reporting Standards (GRI) and is prepared in accordance with latest GRI Standards.
Content of the Report with Comparative Information and Limitations
This Report presents performances of the Bank in a way our stakeholders can get a comprehensive view of the Bank's policies, operations and processes. Transparency in reporting helps the Bank identify and address its weaknesses, while building on its strengths. Key Performance Indicators are presented with comparative data relating to the previous year.
Independent Assurance
The Bank engaged Messrs. KPMG to obtain an independent assurance of our sustainability report. Their Sustainability Assurance Report appears on pages 73 to 74 in this Annual Report. Further, Messrs. KPMG has given their opinion on the financials given on pages 160 to 164 of this Annual Report.
This integrated report can be accessed through the Bank's website
at https://www.seylan.lk/about-us/investor-relation
Feedback may be directed to :
Ms Champika Dodanwela
Chief Financial Officer
Seylan Bank PLC
Tel: (94) - (11)-2456358
Email: champikad@seylan.lk
SEYLAN
BANK
STORY
2 | SEYLAN BANK PLC | |
A n n u a l R e p o r t 2 0 2 2 | ||
Seylan Bank is a licensed commercial bank and a public limited liability company incorporated in Sri Lanka and listed on the Colombo Stock Exchange. The Bank offers a comprehensive suite of products and services to its corporate, Medium and Small Enterprises (SME) and retail customers. Seylan Bank is focused on delivering a positive societal and environmental impact underpinned by a unique customer-centric and people-driven culture.
The Bank's strategic pivot in response to the changes occurred precipitated by the pandemic has resulted in the acceleration of its digital initiatives. Thus, the Bank is well-positioned to be a 'future ready' bank by harmonising its wide physical and unparalleled reach with digital capabilities to provide a differentiated service.
There were no significant changes in the size, structure, ownership or supply chain of the Bank during 2022.
VisionMission
To be Sri Lanka's leading financial services provider as recognised by all our stakeholders
We provide our customers with financial services that meet their needs in terms of value, pricing, delivery and services. We will do so through a team of Seylan bankers who are recognised and rewarded for results orientation. We will ensure that our efforts translate to meeting the expectations of our shareholders, whilst always acting as responsible corporate citizens.
Our suite of banking services consists of Branch Banking, Retail Banking, Corporate and Foreign Currency Banking, International/ Trade Finance, Treasury which are the main business lines.
The service delivery is ably supported by the functions of Operations, Human Resources, Marketing, Information Technology, Digital Banking, Legal, Recoveries, Credit Administration, Finance, Risk, Internal Audit and Compliance etc.
Seylan Bank PLC holds 70.51% of its subsidiary Seylan Developments PLC as at 31 December 2022.
(For more details, please refer Note 28.1).
3 | SEYLAN BANK PLC | |
A n n u a l R e p o r t 2 0 2 2 | ||
KEY FINANCIAL
HIGHLIGHTS
For the year
Bank | Group | ||||
2022 | 2021 | Change | 2022 | 2021 | Change |
LKR'000 | LKR'000 | % | LKR'000 | LKR'000 | % |
Gross Income
Profit before Income Tax
Income Tax Expense
Profit Attributable to Equity Holders of the Bank
Other Comprehensive Income for the Year, net of Tax
Total Comprehensive Income Attributable to Equity Holders of the Bank
Revenue to Government *
Gross Dividend **
At the Year End
Total Equity Attributable to Equity Holders of the Bank
Retained Earnings
Customer Deposits
Customer Loans and Advances
Total Assets
Information per Ordinary Share
Basic/Diluted Earnings per Share (LKR) ***
Dividend per share (LKR) **
Net Assets Value per Share (LKR)
Market Value (LKR) - As at End of the Year
Voting Shares
Non - Voting Shares
Statutory Ratios (%)
Capital Adequacy
Common Equity Tier 1 Capital Ratio (%) (Minimum Requirement - 7.00 % )
Total Tier 1 Capital Ratio (%)
(Minimum Requirement - 8.50 % )
Total Capital Ratio (%)
(Minimum Requirement - 12.50 % )
Liquidity
Statutory Liquid Assets Ratio (%)
(Minimum Requirement - 20 %)
- Overall
- Domestic Banking Unit Operations
-
Foreign Currency Banking Unit Operations
Liquidity Coverage Ratio (%)
(Minimum Requirement - 90% ( 2021 - 100 % ) - Rupee
- All Currency
Other Ratios
Price Earnings Ratio - Voting (Times)
-
Non - Voting (Times)
Dividend Cover (Times) **
96,817,975 | 54,767,049 | 76.78 |
6,628,860 | 6,027,776 | 9.97 |
1,916,597 | 1,447,236 | 32.43 |
4,712,263 | 4,580,540 | 2.88 |
(2,724,398) | (1,521,020) | 79.12 |
1,987,865 | 3,059,520 | (35.03) |
4,690,632 | 3,382,048 | 38.69 |
1,155,552 | 1,602,571 | (27.89) |
54,450,298 | 52,053,009 | 4.61 |
31,063,994 | 29,196,617 | 6.40 |
547,315,755 | 488,653,328 | 12.00 |
444,219,508 | 441,976,662 | 0.51 |
672,805,644 | 607,576,911 | 10.74 |
8.16 | 7.93 | 2.90 |
2.00 | 3.00 | (33.33) |
94.24 | 97.44 | (3.28) |
31.60 | 44.00 | (28.18) |
16.20 | 33.30 | (51.35) |
10.69 | 10.72 | (0.28) |
10.69 | 10.72 | (0.28) |
13.59 | 14.11 | (3.69) |
25.51 | 22.97 | 11.06 |
25.16 | 22.84 | 10.16 |
25.02 | 23.30 | 7.38 |
280.14 | 163.02 | 71.85 |
175.10 | 132.70 | 31.95 |
3.87 | 5.55 | (30.27) |
1.99 | 4.20 | (52.62) |
4.08 | 2.86 | 42.66 |
96,836,414 | 54,750,691 | 76.87 |
6,796,658 | 6,184,680 | 9.90 |
2,218,888 | 1,449,010 | 53.13 |
4,574,359 | 4,653,003 | (1.69) |
(2,746,463) | (1,479,099) | 85.68 |
1,834,403 | 3,161,541 | (41.98) |
4,992,923 | 3,383,822 | 47.55 |
1,155,552 | 1,602,571 | (27.89) |
56,202,061 | 53,958,234 | 4.16 |
31,697,936 | 29,967,349 | 5.77 |
547,315,755 | 488,653,328 | 12.00 |
444,219,508 | 441,976,662 | 0.51 |
672,835,176 | 608,090,133 | 10.65 |
7.92 | 8.05 | (1.61) |
2.00 | 3.00 | (33.33) |
97.27 | 101.01 | (3.70) |
10.97 | 10.92 | 0.46 |
10.97 | 10.92 | 0.46 |
13.87 | 14.28 | (2.87) |
* Excluding Surcharge Tax paid LKR 1,168,335,036.00 in 2022.
- Dividends are accounted for as per the Sri Lanka Accounting Standard - LKAS 10.
- Earnings per share has been restated as per Sri Lanka Accounting Standard - LKAS 33.
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Seylan Bank plc published this content on 03 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2023 10:38:02 UTC.
