Seylan Bank profits up 323% to Rs. 185.9 Mn profit in Q1 2010

Seylan Bank has posted an encouraging Rs. 185.9 Mn profit in the first quarter of 2010 recording a sharp 323% increase compared with the Rs. 43.9 Mn in the corresponding period the previous year.

The Bank’s pre-tax profit was a staggering Rs. 291.7 Mn, up by nearly 419% from the Rs. 56.2 Mn in the corresponding period the previous year.

Among the major contributory features was the Bank’s ability to retain its deposit base during Q1 2010 with savings deposits recording a 5.8% increase.

An elated Chairman of the Seylan Bank, Eastman Narangoda said that this achievement was once again an overwhelming endorsement of the faith and confidence the people of Sri Lanka have in the Seylan Bank. “The Bank today enjoys both stability and profitability. Ever since the Central Bank-appointed new Board of Directors took over, we have been on an upward growth. Our wide-reaching Strategic Plan and aggressive recovery drive encompassing many areas have, in turn, successfully restored investor confidence. The dividends are being enjoyed by our thousands of shareholders today. My Board of Directors and I, are very confident that 2010 will be a record making year for the Seylan Bank and that we will surpass all expectations in terms of overall performance and profitability”.

Seylan Bank also recently reported a Rs. 543.301Mn Profit after Tax for 2009 representing an increase of 250% over the previous financial year. During the same period, the Bank’s cost-to-income ratio showed a marked improvement decreasing from 75.79% to 67.82%, while the total capital adequacy ratio – under severe pressure during the end 2008 crisis – rose from 8.06% to 11.74% in 2009.

Seylan Bank now meets or exceeds the liquidity targets stipulated by the CBSL. These positive indicators have brought a corresponding rise in confidence both in the shareholder and depositors. The share price which returned to pre-crisis levels following the appointment of the new Board of Directors headed by veteran banker Eastman Narangoda, has continued to gain strength as the management implements, at all levels, the wide ranging initiatives set out in the Bank’s new strategic plan.

The Directors of Seylan Bank are Eastman Narangoda (Chairman), R. Nadarajah (Executive Director) and Directors Nihal Jayamanne PC, Lalith Vithana, Retd. Rear Admiral B.A.J.G. Peiris, Pradeep Kariyawasam, Dr. Nalaka Godahewa, Ajith Devasurendra, Ishara Nanayakkara and Samantha Ranatunga.