Seylan Bank reports breakout performance for September quarter on higher loans

As the banks’ earnings roll in, Seylan Bank PLC reported some stellar financial performance for the three months ended in September 2025. This is as the bank accelerated growth in its loan book while improved borrower profiles helped the company set aside less than what it provided a year ago for possible loan losses.

The bank reported a net interest income of Rs.9.39 billion for the July – September quarter, up 7.18 percent from the same period in 2024 although the margins came under some pressure amid declining interest rates.
In fact, the net interest margin slipped to 4.48 percent by the end of September from 4.90 percent at the start of the year. 

The bank gave loans worth Rs.40.08 billion for the three months, taking the 9-months’ growth in new loans to Rs.71.75 billion. This translated into a robust 13.7 percent growth. The September loan growth lifted the bank’s loan book to Rs.596.87 billion.

The bank’s voting share closed Rs.2.00 or 1.75 percent lower at Rs.112.00 as a result of some selling pressure on banking sector counters yesterday.

Despite the acceleration in new loans in the third quarter, the bank managed to keep its loan loss provisions to Rs.281.33 million, compared to Rs.1,194.12 million in the same period last year, reflecting improved repayment capacity of the borrower in a growing economy.

The asset quality of the bank too improved as reflected in the Stage 3 loans ratio which fell to 1.48 percent from 2.10 percent at the start of the year.

Seylan Bank stands among those with the lowest Stage 3 ratios in the industry.

The higher loan growth and other banking activities also helped the bank to increase its net fee and commission incomes by 16.8 percent to Rs.2.44 billion. Apart from the general increase in the loan book, the cards, remittance and trade also helped the bank to propel its fee incomes.

Meanwhile, the bank raised deposits worth Rs.28.04 billion or by 4.3 percent to Rs.674.85 billion.

Besides, at the beginning of the quarter, the bank raised Rs.15.0 billion in 5 year and 10 year BASEL III debentures to beef up its tier II capital base to further help its funding profile and thereby expand its loan book.

Under this backdrop, Seylan Bank reported earnings of Rs.4.54 a share or Rs.2.89 billion for the quarter ended in September 2025, up 39.77 percent from the same period in 2024.

For the 9-months, the bank reported earnings of Rs.13.11 a share or Rs.8.33 billion, up 26.14 percent from the comparable period in 2024.

Brown & Company PLC together with LOLC group held 23.24 percent stake in Seylan Bank while a consortium of shareholders including Sri Lanka Insurance Corporation, Employees Provident Fund, Bank of Ceylon and Employees Trust Fund held over 32 percent stake in the bank as of September end.