EUR 4.56 For Business Accounts Only

JKSB Quarterly Highlights_Seylan Bank PLC (SEYB)_3QCY17

During 3Q CY17, SEYB achieved a healthy increase of 19.2% YoY in net interest income (NII) with the support of 8.2% YoY loan book expansion and a YoY improvement of the quarterly net interest margin. In addition to this, SEYB also experienced a strong growth of 27.3% YoY in net fee & commission income. However, this was partially offset by the collective decline of the other components of non-interest income (-24.1% YoY) and as a result, SEYB's total operating income increased by 16.2% YoY during the quarter. While the marginal decline in impairment charges and an improvement in the cost to income ratio helped SEYB achieve an increase of 24.6% YoY in operating profit before taxes, higher taxation restricted bottom line growth to 12.9% YoY during the quarter.

 During the cumulative period, 9M CY17, SEYB saw its total operating income increase at a healthy rate of 23.3% YoY with the support of the sound increases experienced in both NII (+17.4% YoY) and non-interest income (+41.4% YoY). Although total impairment increased steeply by 141.9% YoY, an improvement in the cost to income ratio from 58.1% to 56.6% enabled SEYB to record a net profit growth of 19.4% YoY during 9M CY17.

 Main Implication from Budget 2018: It was proposed to charge a special levy for debt repayment at the rate of 0.02% on the total transaction made through banks with effect from 01st April 2018 (for 3 years). The aggregate amount that is planned to be raised from the banking sector through this proposal is estimated to be Rs.20 bn.