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Seylan Bank records Rs. 1Bn PAT in 2021 Q1 despite Covid challenges

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Financial Performance review for the 03 Months ended 31 March 2021

Seylan Bank made a steady start in 2021 by posting a Profit After Tax (PAT) of LKR 1Bn in Q1 2021 amidst macro-economic challenges brought in by the COVID-19 pandemic.

Statement of Financial Performances

Interest income recorded a decline due to the lower interest rates and moderate book growth but net interest margin showed a marginal increase over the corresponding period in 2020 due to lower financing costs.

Net Fee & Commission Income increased marginally to LKR 1.2Bn from LKR 1.0Bn, recording a YoY growth of 17.41% due to enhanced trade and guarantee volumes compared to the previous year.

The Total Operating Income growth of 22.25% predominantly driven by Net gains reported from de-recognition of financial assets which increased to LKR 185.2Mn from LKR 69.6Mn in 1Q 2020 and the other operating income increased by LKR 858.8Mn mainly due to increase in exchange income. On the flip side, trading activities reported a loss of LKR 611.4Mn mainly due to mark to market loss on derivatives which contracted the operating income YoY growth.

Bank recorded an impairment charge of LKR 2.2Bn during the period under review against LKR 1.1Bn reported in 1Q 2020 with a growth of 94.53% attributed to aggressive provisioning policy adopted.

Total Operating Expenses recorded LKR 3.4Bn in 1Q 2021 compared to LKR 3.3Bn in 1Q 2020. The Bank continued to focus on widening the roll-out of lean initiatives and automation across the Bank and rationalising expenditure on key controllable cost lines.

Overall, Bank recorded a Profit Before Tax (PBT) of LKR 1.4Bn against LKR 1.3Bn in 1Q 2020. Similarly, Profit After Tax (PAT) was recorded as LKR 1.0Bn against LKR 0.9Bn reported in 1Q 2020.

Statement of Financial Position

Bank achieved the LKR 562.7Bn Total Assets as of 31 March 2021, resulting 0.90% growth compared to the 31 December 2020.

Loans and advances portfolio of the Bank recorded a marginal growth of 1.51% to LKR 399.7Bn during the 1Q 2021 amidst of challenges faced. The growth in credit was driven primarily by Term Loans, and retail products such as Leasing, Pawning etc.

NPL ratio improved marginally to 6.39% against 6.43% reported as at last year end. Bank is continuously monitoring and strengthening the recovery process in order to bring under control and minimize the impact of the NPL.

The overall deposit base recorded a marginal growth of 1.28% to LKR 445.9Bn by 1Q 2021 compared to LKR 440.3Bn. Bank’s CASA ratio (Current and Savings) stood 34.52%.

Key financial ratios and indicators

Seylan Bank remained soundly capitalised, with the key capital adequacy ratios well above the regulatory minimum requirements and recorded 11.02% as the Bank’s Common Equity Tier 1 (CET 1) Capital Ratio/Total Tier 1 Capital Ratio and 13.59% as the Total Capital Ratio.

Bank maintained its liquidity position above the required minimum ratios, during the quarter under review. The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Foreign Banking Unit were maintained at 29.84% and 22.80% respectively as at end of first quarter 2021.

The Return on Equity (ROE) stood at 8.20% for the period under review, compared to 6.43% recorded in 2020. The Return (before tax) on Average Assets (ROAA) recorded as 1.00% in 1Q 2021.

Earnings per Share (EPS) in 2021 stood at LKR 1.88, a slight increase compared to the LKR 1.69 recorded in the comparative year, while net assets value per ordinary share recorded at LKR 91.92 (group LKR 95.23).

Successful and oversubscribed Debenture issue of LKR 6.0Bn endorsed and demonstrated the confidence placed in the Bank by the investors.



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OPPO releases new OPPO A54 in Sri Lanka

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OPPO, the leading global smart device brand, announces the launch of OPPO A54 in Sri Lanka.

A54’s attention to design and great usability is evident in both its exquisite appearance and how it helps to capture great looking shots. This starts with the Material of the Rear Cover, which uses metallic material for its 3D panel, but contributes to a stronger and less bendable structure but also a comfortable in-hand feel. As a result, A54 weighs about 192g and is 8.4mm thin. To align the overall look and feel of the phone, close attention is paid to the Middle Frame Process.

“A Series is designed to enhance or complement our users’ lifestyles and OPPO A54 achieves just this with a phone that manages to balance a high-end performance with contemporary design. Its large 5000mAh battery and 18W Fast Charge makes sure you’re fully powered to get you through your day. With A54, you’ll also have enough storage and memory to make sure that you’ll enjoy your entertainment without the frustrations of an underperforming smartphone,” said Bob Li, CEO, XINDA Lanka (OPPO Sri Lanka).

The Rear Cameras itself feature a 13MP Main Camera, 2MP Macro Camera for close range shots, and 2MP Bokehfor brilliant bokeh shots that blur the background and highlight the subject of the photo. A54 enhances shots in all environments with Dazzle Color, balancing the saturation and brightness. A54 also supports filming videos including SLO-MO at 720P at 90FPS with the rear camera, and up to 10 video Filters including Original, Gentle, Noon, Subtle and more.

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Pan Asia Bank records best-ever Q1 results in challenging times – Profit After Tax soars by 81% to post Rs. 750 mn.

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Pan Asia Banking Corporation PLC reported the best-ever first quarter financial results during the quarter ended 31st March 2021 to report a Pre-Tax Profit of Rs. 986 Mn and a Post-Tax Profit of Rs. 750 Mn after recording impressive growth rates of 51% and 81% respectively, demonstrating the resilience amidst challenging macro economic conditions. The Bank’s performance was characterised by strength and resilience, despite the heightened uncertainty due to the impact of the COVID-19 pandemic.

Against the backdrop of the COVID-19 impact on the Sri Lankan economy, the Bank’s Operating Profits before VAT on Financial Services reached Rs. 1,197 Mn with an increase of 47%, reflecting excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key matrices which now rank among the industry bests. This feat was achieved even after setting aside provisions for probable loan losses amounting to Rs. 638 Mn. The Bank increased the provision buffers for probable deterioration in credit quality through management overlays, experience adjustments and adjustments for the exposures in the elevated risk industries during the quarter. As a result, total impairment charges for the quarter increased by 21% on YoY basis.

The Bank’s Net Interest Income for the period witnessed an increase of 17% due to significant reduction in financial cost of funds at a rate faster than the drop in interest yields of interest bearing assets. Consequently, the Bank’s Net Interest Margin for the quarter improved to 5.07% from 4.41% reported three months ago. In the meantime, the Bank’s Net Fee and Commission Income recorded a growth of 28% with the rebound in demand for credit due to revival of economic activity amidst the low interest rate regime. The volatility in foreign exchange rates enabled the Bank to increase its Foreign Exchange Income substantially as reflected in Other Operating Income.

The Bank is committed to revenue maximisation and cost management despite sector vulnerabilities that prevailed since last year. The Bank’s Cost-to-Income Ratio improved from 45.66% to 38.08% within a three months period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain overhead costs. In fact, the Bank managed to bring down its Other Operating Expenses by 9% in 2021 Q1 compared to 2020 Q1. Meanwhile, increased allocations for performance bonuses, development of human capital and staff welfare led to an increase in personnel costs during the reporting period compared to 2020 Q1.

The Bank’s Post-Tax Profits for the reporting quarter also gained to an extent due to application of lower corporate income tax rate of 24% for tax provisioning in accordance with the guideline issued by CA Sri Lanka on 23rd April 2021.

The Bank continues to report solid Key Profitability Indicators which rank among the highest in the industry. The Bank’s Pre-Tax Return on Assets also improved to 2.24% from 1.70%. Further, the Bank reported a stunning Return on Equity (ROE) of 19.27% during the quarter under review which stands among the industry best. The ROE is the most important performance indicator to gauge the attractiveness of the Banking sector and Pan Asia Bank during its last few years has consistently remained an outlier in the industry.

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SLIIT nurtures school children at ‘Soft Skills + 2021’

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The SLIIT Business School (SBS) organised ‘Soft Skills+ 2021’ concluded on an extremely successful note recently helping students engage, cooperate and thrive in building their talents towards personal development and career progression.

SLIIT Soft Skills+ event is an annual flagship CSR Project of the SLIIT Business School organized with the primary objective of developing secondary school students’ soft skills in positive thinking, creativity, analytical thinking, leadership skills, problem-solving skills, communication skills, and teamwork.

Over the years, the programme has garnered much popularity among schools and participants. Due to its tremendous success achieved in previous programmes, Soft Skills+ 2021 followed an upgraded structure. For the first time in the Soft Skills+ programme history, the event was held via online platforms, including a Soft Skills-based online quiz and an online workshop for students and teachers.

During the Grand Finale, Prof. Samantha Thelijjagoda, Dean of SLIIT Business School welcomed the participants and distinguished guests. Prof. Lalith Gamage, Vice Chancellor, SLIIT also addressed the gathering.

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