Seylan Bank records Rs. 4.6 bn PAT for FY 2021
Seylan Bank recorded a Profit After Tax (PAT) of Rs. 4.6 billion for the year ended December 31,2021 as Net Interest Income (NII) soared with an impressive growth of 20.98% for the period under review compared to 4.64% growth reported in 2020.
Despite the extremely challenging operating conditions that prevailed in 2021, the Bank recorded a healthy growth of 46.62% in Profit Before Tax (PBT) amounting to Rs 6 billion compared to Rs. 4.1 billion recorded in 2020. Similarly, the Bank’s Profit After Tax (PAT) also achieved a 52.11% growth amounting to Rs 4.6 billion in 2021 compared to Rs 3 billion recorded in the previous financial year. Though the Bank’s overall interest income for the period under review recorded a decrease of Rs 4.3 billion to record Rs 46.8 billion in 2021, interest expenses for the financial year decreased at a higher percentage of 26.66% to Rs 23.2 billion compared to Rs 31.6 billion recorded in 2020. As a result, the Net Interest Income (NII) recorded an impressive growth of 20.98% for the period under review compared to 4.64% growth reported in 2020. An improved Net Interest Margin (NIM) of 4.05% recorded in 2021 compared to 3.63% in 2020 was driven by the timely re-pricing of assets and liabilities, together with the Bank’s continual strengthening of the CASA
base which grew by Rs 27.6 billion with 19.00% YoY growth in 2021. The Bank’s net fee and commission income recorded a notable growth of 24.44% to sR 4.6 billion from Rs 3.7 billion in the previous financial year. The growth in fee and commission income was driven mainly by guarantees, issuance fees, trade related fees as well as fee income on loans and cards. The Bank recorded a total operating income growth of 23.71% amounting to Rs 31.4 billion in 021 compared to Rs 25.4 billion in the previous financial year.The Bank’s net gains from trading were reduced by 163.02 %, and was affected by the mark to market loss on derivative financial instruments and government securities during the year under review. Net Gains from de-recognition of financial assets recorded a negative growth of 29.28% over the prior year the year under review. Net other operating income of the Bank amounted to Rs 2,877.6 million for 2021, an increase of 172.04 % compared to the previous year. The overall operating expenses of the Bank increased by 2.15% from Rs 12.8 billion in 2020 to Rs 13.1 billion during the period under review.
The Bank’s personnel expenses increased slightly by 0.15% to Rs 7.3 billion in 2021 compared to Rs 7.2 billion in the previous year.