Seylan Bank recorded a Profit before Income Tax (PBT) of LKR 8,444 Mn in 1H 2025, against LKR 7,331 Mn in 1H 2024 demonstrating a growth of 15.18%.
For the 6 months ended 30 June 2025, Profit after Tax recorded by Seylan Bank was LKR 5,489 Mn a growth of 20.41% against LKR 4,558 Mn recorded in the corresponding period of 2024.
Statement of Financial Performance
Net interest income decreased from LKR 18,590 Mn to LKR 17,762 Mn, a decrease of 4.45% 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% in 2024 to 4.52% in 1H 2025. The Bank’s net fee based income recorded a growth of 15.43% from LKR 3,739 Mn to LKR 4,316 Mn 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 LKR 23,114 Mn, a decrease of 0.71% compared to LKR 23,279 Mn recorded in the corresponding period of 2024, driven mainly by the reduction in Net Interest Margins during the period.
Other income captions comprising of net gains from trading activities and net other operating income, reflected an increase compared to the corresponding period of 2024.
Total Operating Expenses recorded an increase of 8.37% from LKR 10,388 Mn in 2024 to LKR 11,258 Mn in 2025 for the 6 months ended 30 June 2025. Personnel expenses increased by 7.99% from LKR 5,372 Mn to LKR 5,801 Mn mainly due to increase in staff related expenses. Other Operating expenses and depreciation and amortization expenses too increased by 8.78% due to increase in prices of consumables and services over the period. The Bank will continue to take relevant measures to curtail costs through various cost optimization initiatives.
The Bank recorded an impairment charge of LKR 491 Mn in 1H 2025 against LKR 2,956 Mn reported in 1H 2024 with a reduction of 83.39%. The Bank has ensured impairment provisions are made to capture the changes in the global and local economy, credit risk profile of customers and the credit quality of the Bank’s loan portfolio in order to ensure adequacy of provisions recognized in the financial statements.
(Seylan Bank)
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