For the 6 months ended 30 June 2025, Profit after Tax recorded by Seylan Bank was LKR 5,489 Mn a growth of 20.41% against LKR 4,558 Mn recorded in the corresponding period of 2024.
Statement of Financial Performance
Net interest income decreased from LKR 18,590 Mn to LKR 17,762 Mn, a decrease of 4.45% over the previous year for the 6 months ended 30 June 2025 mainly due to the reduction in market interest rates and repricing of loans and deposits.
The Bank’s Net Interest Margin (NIM) also recorded a reduction from 4.90% in 2024 to 4.52% in 1H 2025.
The Bank’s net fee based income recorded a growth of 15.43% from LKR 3,739 Mn to LKR 4,316 Mn during 1H 2025, and growth was mainly attributed to fee income from Cards, Remittances, Trade and other financial services.
The Bank’s total operating income was LKR 23,114 Mn, a decrease of 0.71% compared to LKR 23,279 Mn recorded in the corresponding period of 2024, driven mainly by the reduction in Net Interest Margins during the period.
Other income captions comprising of net gains from trading activities and net other operating income, reflected an increase compared to the corresponding period of 2024.
Total Operating Expenses recorded an increase of 8.37% from LKR 10,388 Mn in 2024 to LKR 11,258 Mn in 2025 for the 6 months ended 30 June 2025.
Personnel expenses increased by 7.99% from LKR 5,372 Mn to LKR 5,801 Mn mainly due to increase in staff related expenses.
Other Operating expenses and depreciation and amortization expenses too increased by 8.78% due to increase in prices of consumables and services over the period.
The Bank will continue to take relevant measures to curtail costs through various cost optimization initiatives.
The Bank recorded an impairment charge of LKR 491 Mn in 1H 2025 against LKR 2,956 Mn reported in 1H 2024 with a reduction of 83.39%.
The Bank has ensured impairment provisions are made to capture the changes in the global and local economy, credit risk profile of customers and the credit quality of the Bank’s loan portfolio in order to ensure adequacy of provisions recognized in the financial statements.
The Bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio stood at 1.76% (2024 – 2.10%), while the Stage 3 Provision Cover Ratio stood at a strong 81.82% as at 30/06/2025, one of the highest in the banking industry.
Income tax expenses recorded as LKR 2,956 Mn which is a 6.59% increase over the comparative period, which stood at LKR 2,773 Mn.
Value Added Tax on Financial Services increased for the first six months from LKR 2,286 Mn to LKR 2,564 Mn in 2025 which is a 12.15% increase over the corresponding period.
Social Security Contribution Levy increased for the first six months from LKR 318 Mn to LKR 356 Mn in 2025 which is a 12.15% increase over the corresponding period.
Overall, Bank recorded a Profit after Tax (PAT) of LKR 5,489 Mn during 1H 2025 a growth of 20.41% over the corresponding period in 2024.
Statement of Financial Position
The Bank’s total Assets increased from LKR 780 Bn to LKR 812 Bn during 1H 2025, demonstrating a steady growth over the last six months.
The Bank also made arrangements to canvass new to Bank Loans and Deposits while retaining its existing customer base.
Loans and Advances of the Bank were recorded at LKR 494 Bn a net growth of LKR 31 Bn, while Deposits were recorded at LKR 670 Bn a net growth of LKR 23 Bn during 1H 2025.
The Bank’s CASA ratio was maintained at 30%.
Key financial ratios and indicators
Key financial ratios and indicators of Seylan Bank PLC remained sound as of 30 June 2025.
The capital adequacy ratios were well above the regulatory minimum requirements and recorded 13.14% as Common Equity Tier 1 Capital Ratio & Total Tier 1 Capital Ratio and 16.85% as the Total Capital Ratio.
The Bank maintained the Liquidity Coverage Ratio (LCR) well above the statutory requirement.
All Currency LCR Ratio and the Rupee LCR Ratio were maintained at 295.22% and 306.44% respectively.
The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.76% (2024 – 2.10%) and 81.82% (2024 – 80.90%) respectively.
The Return on Equity (ROE) stood at 15.29% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.15% (2024 – 2.14%) for the period under review, recording an improvement.
The Bank’s Earnings per Share stood at LKR 8.63 in 1H 2025 compared to LKR 7.17 reported in 1H of the previous year.
The Bank’s Net Assets Value per Share stood at LKR 118.73 as at 30 June 2025 (Group LKR 121.99).
The Bank opened 19 “Seylan Pahasara Libraries” during 1H 2025 taking the total number of libraries to 284, clearly signifying the Bank’s commitment to foster education and support children across the island.
The Bank also successfully raised LKR 15 Bn Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable, 5 years and 10 years Debentures on 9th July 2025, which was oversubscribed on the same day itself.
Fitch Ratings upgraded the National Long-Term Rating of Seylan Bank to 'A+(lka)' by two notches with a Stable Outlook on 21 January 2025.