Seylan Bank reports Rs.2.91bn PAT in 1Q26

Chairman Justice Buwaneka Aluwihare, PC

Director and CEO  Ramesh Jayasekara

Seylan Bank recorded a profit before income tax (PBT) of Rs.4,548 million in 1Q 2026, against Rs.4,199 million, reflecting a growth of 8.31 percent.

For the three months ended March 31, 2026, profit after tax (PAT) recorded by Seylan Bank was Rs.2,906 million, with a growth of 5.25 percent, against Rs.2,761 million recorded in the corresponding period of 2025. 

Net interest income (NII) increased from Rs.8,587 million to Rs.9,734 million, an increase of 13.37 percent over the previous year for the three months ended March 31, 2026, mainly due to the significant growth in the bank’s assets base over the last 12 months from Rs.785 billion as end of 1Q 2025 to Rs.943 billion as at March 31, 2026. The bank’s net interest margin (NIM) also moderated from 4.50 percent in 2025 to 4.23 percent during 1Q 2026. 

Meanwhile, the bank’s net fee-based income recorded a growth of 24.04 percent, increasing from Rs.1,863 million to Rs.2,311 million, primarily driven by fee income from cards, remittances, trade, and other financial services. 

The bank’s total operating income was recorded as Rs.12,375 million, an increase of 12.57 percent, compared to Rs.10,994 million recorded in the corresponding period of 2025, driven mainly by the increase in NII, net fee and commission income. 

Total operating expenses increased by 19.40 percent, rising from Rs.5,135 million in 1Q 2025 to Rs.6,131 million in 1Q 2026. 

The bank recorded an impairment charge of Rs.100 million in 1Q 2026, lower than Rs.225 million in 1Q 2025, with a reduction of 55.57 percent. 

The bank’s asset quality ratios demonstrated continued strength, with the impaired loan (Stage 3) ratio at 1.01 percent (2025: 1.03 percent) and Stage 3 provision cover ratio at 86.23 percent as at March 31, 2026, among the highest in the banking industry.

Income tax expenses for 1Q 2026 amounted to Rs.1,643 million, compared to Rs.1,438 million reported for 1Q 2025. 

The bank’s total assets increased from Rs.921 billion to Rs.943 billion during 1Q 2026. Loans and advances grew to Rs.628 billion and deposits rose to Rs.743 billion. The bank’s CASA ratio was maintained at 28 percent. 

The bank’s earnings per share stood at Rs.4.57 in 1Q 2026, compared to Rs.4.34 reported in previous year. The bank’s net assets value per share stood at Rs.128.86 as at March 31, 2026 (group - Rs.132.17).