Seylan Bank PLC
Interim Financial Statements
For the 09 Months Ended 30th September 2022
Seylan Bank Records Profit-After-Tax of Rs. 2,505 Million for the Nine Months ended 30 September 2022
The Bank closed the nine months ended 30th September 2022 with a post-tax profit of Rs. 2,505 Million, against Rs. 3,206 Million reported in the corresponding period of 2021.
Statement of Financial Performance
Net Interest income increased from Rs. 17,068 Million to Rs 27,960 Million, a growth of 63.82% over the previous year, for the 9 months ended 30th September. The Bank's net fee based income increased by 38.22%, from Rs. 3,270 Million to Rs. 4,520 Million during nine months, mainly due to increase in Trade Finance and Card Related Income.
Other income captions comprising of net gains from trading activities, net gains from de-recognition of financial Assets, net gains on foreign exchange transactions and other operating income increased by 37.13 % over the previous year, from a net gain of Rs. 1,979 Million to a net gain of Rs. 2,715 Million during the nine months of 2022. The increase is mainly from net foreign exchange revaluation gains.
Total Expenses recorded an increase of 9.75 % during the nine months, from Rs. 10,036 Million in the the previous year to Rs. 11,015 Million in 2022. Personnel expenses increased by Rs. 530 Million mainly due to increase in the staff benefits based on the collective agreement. Other Operating expenses and depreciation and amortisation expenses too increased by 10.39% due to increase in prices of purchases and services as a result of higher inflation and local currency depreciation. However, Bank will continue to take relevant measures to curtail costs with various cost initiatives.
The Bank recognised a total impairment charge of Rs. 18.8 Billion for the nine period in 2022 compared to Rs.
6.2 Billion reported in the corresponding period of last year, representing a 199.09% increase. The Bank increased the impairment provision to capture the impact on emerging global and local economic challenges and the credit risk profile of the customers.
Statement of Financial Positions
The Bank reported a marginal growth of 2.66% in net Loans and advances to Rs. 453,730 Million during the period under review. Its overall deposit base increased from Rs. 488,653 Million in December 2021 to Rs. 524,439 Million during the nine months ended 30 September 2022, with a growth of 7.32%. The Bank's CASA ratio (Current and Savings) stood at 30.25 %. Further the Bank's asset base expanded by Rs. 50,223 Million to Rs. 657,800 Million.
Key financial ratios and Indicators
Overall, with the reported performance during the nine months, Bank's Earnings Per Share (EPS) stood at Rs.
4.34. The Bank recorded a Return (profit before tax) on Assets (ROAA) of 0.74 % and Return on Equity (ROE) of 6.44 %. The Bank's Net Asset Value per share as at 30 September 2022 was Rs. 91.47 (Group Rs. 94.74).
Seylan Bank remained soundly capitalized, with the key capital adequacy ratios above the regulatory minimum requirements and recorded 10.33 % as total Tier 1 capital ratio and 13.43 % as the total capital ratio.
The Bank's Liquidity Ratios are within the statutory limits. The Statutory Liquid Assets Ratio (SLAR) of Domestic Banking Unit and Foreign Currency Banking Unit were reported as 20.60% and 23.07% respectively and the Bank's Liquidity Coverage Ratio of All Currencies and Rupees were reported as 122.92% and 201.26% respectively.
The Banks's Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage3) to Stage 3 Loans Ratio stood at 5.74% and 46.00% respectively.
Seylan Bank PLC
Income Statement
(In terms of Rule 7.4 of the Colombo Stock Exchange)
Bank
For the Nine Months Ended
30th September
(Amounts in Rupees Thousands) Bank
For the Quarter Ended
30th September
2022 | 2021 | Growth | |
% | |||
Interest Income | 57,255,987 | 34,469,497 | 66.11 |
Less : Interest Expenses | 29,296,327 | 17,401,818 | 68.35 |
Net Interest Income | 27,959,660 | 17,067,679 | 63.82 |
Fee and Commission Income | 4,687,867 | 3,376,281 | 38.85 |
Less : Fee and Commission Expenses | 167,979 | 106,258 | 58.09 |
Net Fee and Commission Income | 4,519,888 | 3,270,023 | 38.22 |
Net Gains/(Losses) from Trading | (901,482) | (416,524) | (116.43) |
Net Gains from Derecognition of Financial Assets | 33,770 | 528,905 | (93.62) |
Net Other Operating Income | 3,582,234 | 1,867,115 | 91.86 |
Total Operating Income | 35,194,070 | 22,317,198 | 57.70 |
Less : Impairment Charges | 18,836,958 | 6,298,160 | 199.09 |
Net Operating Income | 16,357,112 | 16,019,038 | 2.11 |
Less : Operating Expenses | 6,249,884 | 5,720,242 | 9.26 |
Personnel Expenses | |||
Depreciation and Amortization Expenses | 1,020,464 | 1,080,393 | (5.55) |
Other Expenses | 3,744,188 | 3,235,706 | 15.71 |
Total Operating Expenses | 11,014,536 | 10,036,341 | 9.75 |
Operating Profit before Taxes | 5,342,576 | 5,982,697 | (10.70) |
Less : Value Added Tax on Financial Services | 1,765,338 | 1,525,979 | 15.69 |
Profit before Income Tax | 3,577,238 | 4,456,718 | (19.73) |
Less : Income Tax Expense | 1,072,220 | 1,250,898 | (14.28) |
Profit for the Period | 2,505,018 | 3,205,820 | (21.86) |
Basic/Diluted Earnings per Ordinary Share (Rs.) | 4.34 | 5.55 | (21.86) |
2022 | 2021 | Growth |
% | ||
24,712,864 | 11,653,273 | 112.07 |
13,604,325 | 5,556,310 | 144.84 |
11,108,539 | 6,096,963 | 82.20 |
1,806,666 | 1,124,829 | 60.62 |
62,694 | 34,408 | 82.21 |
1,743,972 | 1,090,421 | 59.94 |
(803,233) | 35,154 | (2,384.90) |
31,383 | 84,908 | (63.04) |
1,393,177 | 333,836 | 317.32 |
13,473,838 | 7,641,282 | 76.33 |
7,473,224 | 2,289,583 | 226.40 |
6,000,614 | 5,351,699 | 12.13 |
2,129,556 | 1,887,298 | 12.84 |
335,482 | 353,695 | (5.15) |
1,298,065 | 1,045,737 | 24.13 |
3,763,103 | 3,286,730 | 14.49 |
2,237,511 | 2,064,969 | 8.36 |
2,237,511 | 2,064,969 | 32.75 |
691,646 | 521,021 | |
1,545,865 | 1,543,948 | 0.12 |
1,545,865 | 1,543,948 | 22.79 |
544,424 | 443,385 | |
1,001,441 | 1,100,563 | (9.01) |
1.73 | 1.90 | (9.01) |
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Seylan Bank PLC
Statement of Profit or Loss and Other Comprehensive Income
(In terms of Rule 7.4 of the Colombo Stock Exchange)
(Amounts in Rupees Thousands) | ||
Bank | Bank |
For the Nine Months Ended
30th September
For the Quarter Ended
30th September
2022 | 2021 | Growth | 2022 | 2021 | Growth | ||
% | % | ||||||
Profit for the Period | 2,505,018 | 3,205,820 | (21.86) | 1,001,441 | 1,100,563 | (9.01) | |
Other Comprehensive Income/ (Loss), Net of Tax | |||||||
Items that are or may be Reclassified to Income | |||||||
Statement in Subsequent Periods | |||||||
Net Movement of Cash Flow Hedge Reserve | 84,246 | 26,868 | 213.56 | - | 11,786 | (100.00) | |
Net Gains/(Losses) on Investments in Debt Instruments | (1,723,874) | (2,325,666) | 25.88 | 217,354 | (1,216,377) | 117.87 | |
measured at Fair Value through Other Comprehensive | |||||||
Income |
Deferred Tax effect relating to items that are or may be Reclassified to Income Statement
Items that will never be Reclassified to Income Statement in Subsequent Periods
Change in Fair Value on Investments in Equity Instruments measured at Fair Value through Other Comprehensive Income
401,588 | 666,815 | 39.78 | (64,306) | 291,930 | (122.03) |
(867,616) | 57,032 | (1,621.28) | 122,045 | 435,861 | (72.00) |
Deferred Tax effect relating to items that will never be | - | - | - |
Reclassified to Income Statement | |||
Other Comprehensive Income/ (Loss) for the Period, | |||
Net of Taxes | (2,105,656) | (1,574,951) | (33.70) |
Total Comprehensive Income for the Period | 399,362 | 1,630,869 | (75.51) |
- | - | - |
275,093 | (476,800) | 157.70 |
1,276,534 | 623,763 | 104.65 |
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Seylan Bank PLC
Income Statement
(In terms of Rule 7.4 of the Colombo Stock Exchange)
Group | |||
For the Nine Months Ended | |||
30th September | |||
2022 | 2021 | Growth | |
% | |||
Interest Income | 57,275,721 | 34,476,151 | 66.13 |
Less : Interest Expenses | 29,015,316 | 17,173,553 | 68.95 |
Net Interest Income | 28,260,405 | 17,302,598 | 63.33 |
Fee and Commission Income | 4,687,775 | 3,376,016 | 38.86 |
Less : Fee and Commission Expenses | 168,713 | 106,258 | 58.78 |
Net Fee and Commission Income | 4,519,062 | 3,269,758 | 38.21 |
Net Gains/(Losses) from Trading | (905,768) | (414,977) | (118.27) |
Net Gains from Derecognition of Financial Assets | 33,770 | 528,905 | (93.62) |
Net Other Operating Income | 3,533,416 | 1,806,592 | 95.58 |
Total Operating Income | 35,440,885 | 22,492,876 | 57.56 |
Less : Impairment Charges | 18,836,958 | 6,298,160 | 199.09 |
Net Operating Income | 16,603,927 | 16,194,716 | 2.53 |
Less : Operating Expenses | 6,285,091 | 5,751,456 | 9.28 |
Personnel Expenses | |||
Depreciation and Amortization Expenses | 1,057,662 | 1,116,178 | (5.24) |
Other Expenses | 3,778,288 | 3,260,723 | 15.87 |
Total Operating Expenses | 11,121,041 | 10,128,357 | 9.80 |
Operating Profit before Taxes | 5,482,886 | 6,066,359 | (9.62) |
Less : Value Added Tax on Financial Services | 1,765,338 | 1,525,979 | 15.69 |
Profit before Income Tax | 3,717,548 | 4,540,380 | (18.12) |
Less : Income Tax Expense | 1,165,330 | 1,233,508 | (5.53) |
Profit for the Period | 2,552,218 | 3,306,872 | (22.82) |
Profit Attributable to : | 2,495,224 | 3,240,148 | (22.99) |
Equity Holders of the Bank | |||
Non-Controlling Interest | 56,994 | 66,724 | (14.58) |
Profit for the Period | 2,552,218 | 3,306,872 | (22.82) |
Basic/Diluted Earnings per Ordinary Share (Rs.) | 4.32 | 5.61 | (22.99) |
(Amounts in Rupees Thousands ) Group
For the Quarter Ended
30th September
2022 | 2021 | Growth |
% | ||
24,723,215 | 11,656,079 | 112.11 |
13,520,937 | 5,480,611 | 146.70 |
11,202,278 | 6,175,468 | 81.40 |
1,806,635 | 1,124,816 | 60.62 |
62,694 | 34,408 | 82.21 |
1,743,941 | 1,090,408 | 59.93 |
(805,720) | 35,153 | (2,392.04) |
31,383 | 84,908 | (63.04) |
1,424,500 | 353,835 | 302.59 |
13,596,382 | 7,739,772 | 75.67 |
7,473,224 | 2,289,583 | 226.40 |
6,123,158 | 5,450,189 | 12.35 |
2,141,497 | 1,897,874 | 12.84 |
348,932 | 365,675 | (4.58) |
1,314,603 | 1,054,470 | 24.67 |
3,805,032 | 3,318,019 | 14.68 |
2,318,126 | 2,132,170 | 8.72 |
691,646 | 521,021 | 32.75 |
1,626,480 | 1,611,149 | 0.95 |
569,919 | 462,025 | 23.35 |
1,056,561 | 1,149,124 | (8.06) |
- | - | - |
1,040,306 | 1,134,802 | (8.33) |
16,255 | 14,322 | 13.50 |
1,056,561 | 1,149,124 | (8.06) |
1.80 | 1.96 | (8.33) |
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Seylan Bank plc published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 09:51:02 UTC.