The Profit Before Tax (PBT) reached LKR 7,331 Mn, showing a 76% increase over the previous year, despite challenging market conditions.
The Bank's Net Interest Income decreased by 9.18% from LKR 20,468 Mn to LKR 18,590 Mn, with the Net Interest Margin reducing to 5.17% from 5.76%.
Net Fee-based Income grew by 6.29%, primarily due to increases in income from Cards, Remittances, and other lending services.
Total Operating Income stood at LKR 23,279 Mn, a decrease of 5.41% compared to the same period last year, largely due to a reduction in net interest margins.
Other income, comprising net gains from trading and de-recognition of financial assets, rose by 52%.
The Bank's Operating Expenses increased by 13.80%, from LKR 9,128 Mn to LKR 10,388 Mn, driven mainly by a 18.69% rise in personnel expenses due to increased staff benefits.
Additionally, the Bank recorded an impairment charge of LKR 2,956 Mn, a 69% reduction from the LKR 9,559 Mn reported in 1H 2023, attributed to improved credit quality and effective recovery initiatives.
Income tax expenses rose by 75.31% to LKR 2,773 Mn, while Value Added Tax on Financial Services and Social Security Contribution Levy increased by 47.43% and 47.07%, respectively, over the previous year.
As of 30 June 2024, Seylan Bank's total assets were recorded at LKR 725 Bn, with Loans and Advances net of impairment at LKR 434 Bn.
Deposits stood at LKR 603 Bn, with a notable increase in local currency deposits and a reduction in foreign currency deposits due to the local currency appreciation.
The Bank maintained a healthy capital adequacy position, with Common Equity Tier 1 and Total Tier 1 Capital Ratios at 12.40%, and a Total Capital Ratio of 15.35%.
The Liquidity Coverage Ratio (LCR) for all currencies was 412.63%, and the Rupee LCR was 472.95%, well above statutory requirements.
The Impaired Loan (Stage 3) Ratio was 3.50%, and the Stage 3 Provision Cover Ratio stood at 70%, well above the industry average of 51%, indicating prudent provisioning practices.
During 1H 2024, the Bank also expanded its ‘Seylan Pahasara Libraries’ initiative, opening 10 new libraries, bringing the total to 235, demonstrating its commitment to supporting education across the island.
Return on Equity (ROE) improved to 14.60%, with Earnings per Share increasing to LKR 7.17.
The Bank's Net Asset Value per Share was LKR 101.37.
Moreover, Seylan Bank successfully completed a LKR 10 Bn Basel III compliant Tier 2 debenture issuance, reflecting strong investor confidence and the Bank's robust financial health.