ECONOMYNEXT – Profits at Sri Lanka’s Seylan Bank Plc group jumped 90 percent to 3.51 billion rupees in the December, 2024 quarter due to the island nation’s debt restructuring that reversed provisions for losses in international sovereign bonds, interim accounts showed.
The group reported earnings of 5.52 rupees for the quarter.
The bank’s impairment reversal due to the Sri Lanka International Sovereign Bond (SLISB) exchange amounted to 4.9 billion rupees in the quarter, compared to 54.5 million rupees in the same quarter a year ago.
Interest income fell 15.3 percent to 20.62 billion rupees during the quarter and interest expenses fell by a faster 24.8 percent to 11.1 billion rupees resulting in a 0.6 percent fall in the net Interest income to 9.54 billion rupees.
Gains in trading fell 48.3 percent to 272.2 million rupees from the same quarter last year.
The Bank in its financial statement said it focused on book growth and made efforts to enhance loans and advances in challenging economic and market condition that prevailed during the year.
Loans grew 6 percent to 463 billion rupees in 2024 from 438 billion from the end of 2023.
Stage 3 accumulated impairments rose to 55.7 billion rupees by end 2024 from 49.2 billion rupees from the end of previous year.
At bank level gross non-performing loans were at 2.10 percent by end December 2024 from 3.85 percent a year ago.
Tier 1 capital was 14.50 percent, up from 12.86 percent and above the required level. Total capital adequacy was 18.84 percent, above the required level. (Colombo/February 2025)
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