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)

1

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

2

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)

3

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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.