Seylan Bank records Rs.5.49 bn PAT in 1H25

Seylan Bank recorded a Profit before Income Tax (PBT) of Rs. 8,444 million in 1H2025, against Rs. 7,331 million in 1H2024 demonstrating a growth of 15.18 percent.

For the 6 months ended 30 June 2025, Profit after Tax recorded by Seylan Bank was Rs. 5,489 million, a growth of 20.41 percent against Rs. 4,558 million recorded in the corresponding period of 2024.

Net interest income decreased from Rs. 18,590 million to Rs.  17,762 million, a decrease of 4.45 percent 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 percent in 2024 to 4.52 percent in 1H 2025. The bank’s net fee based income recorded a growth of 15.43 percent from Rs. 3,739 million to Rs. 4,316 million 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 Rs. 23,114 million, a decrease of 0.71 percent compared to Rs. 23,279 million recorded in the corresponding period of 2024, driven mainly by the reduction in Net Interest Margins during the period.

The bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio stood at 1.76 percent (2024 – 2.10 percent), while the Stage 3 Provision Cover Ratio stood at a strong 81.82 percent as at 30/06/2025, one of the highest in the banking industry.

Income tax expenses were recorded at Rs. 2,956 million which is a 6.59 percent increase over the comparative period, which stood at Rs. 2,773 million. Value Added Tax on Financial Services increased for the first six months from Rs. 2,286 million to Rs. 2,564 million in 2025 which is a 12.15 percent increase over the corresponding period. 

Overall, Bank recorded a Profit after Tax (PAT) of Rs. 5,489 million during 1H2025, a growth of 20.41 percent over the corresponding period in 2024.

The bank’s total Assets increased from Rs. 780 billion to Rs. 812 billion 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 Rs. 494 billion, a net growth of Rs. 31 billion, while Deposits were recorded at Rs. 670 billion, a net growth of Rs. 23 billion during 1H 2025. The bank’s CASA ratio was maintained at 30 percent.

The bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.76 percent (2024–2.10 percent) and 81.82 percent (2024 – 80.90 percent) respectively.

The Return on Equity (ROE) stood at 15.29 percent (2024 – 15.35 percent) and Return on Average Assets (profit before tax) stood at 2.15 percent (2024 – 2.14 percent) for the period under review, recording an improvement. 

The bank’s Earnings per Share stood at Rs. 8.63 in 1H2025 compared to Rs. 7.17 reported in 1H of the previous year. 

The bank also successfully raised Rs. 15 billion Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable, 5 years and 10 years debentures on 9th July 2025, which were oversubscribed on the same day.