Profit before Income Tax – LKR 19.6 Bn up by 22.3%

Profit after Tax – LKR 12.1 Bn up by 20.5%

Total Assets of LKR 921 Bn, with a 18% growth

Return on Equity (ROE) of 15.89%

Total Capital Adequacy Ratio of 17.89%

Impaired Loans (Stage 3) Ratio at 1.03%

Seylan Bank reported its financial results for the year ended 31 December 2025, reporting a strong growth in profitability. The Bank recorded a Profit Before Tax (PBT) of LKR 19.6 billion, reflecting a 22.3% increase compared to LKR 16.0 billion reported in the previous financial year. For the year under review, Profit After Tax (PAT) stood at LKR 12.1 billion, a 20.5% growth over LKR 10.0 billion recorded in the corresponding year of 2024.The reported PAT of LKR 12.1 billion represents the highest annual profit achieved in the Bank’s 37-year history, demonstrating sustained growth and strengthened financial performance.

Net interest income increased to LKR 38.3 billion in 2025 from LKR 36.7 billion in 2024, representing a 4.21% modest growth resulting from the growth in loan book and the reduction in market interest rates and the repricing of loans and deposits and government securities. The Bank’s Net Interest Margin (NIM) also moderated from 4.90% in 2024 to 4.50% in 2025. Meanwhile, the Bank’s net fee-based income recorded a growth of 16.34%, increasing from LKR 7.2 billion to LKR 8.3 billion, primarily driven by fee income from Cards, Remittances, Trade, and other financial services. The Bank’s total operating income for 2025 was LKR 48.1 Bn, an increase of 13.00% compared to LKR 42.6 Bn recorded in the corresponding period of 2024, driven mainly by the increase in net interest income, net fee and commission income and other operating income.

Total operating expenses increased by 8.53%, rising from LKR 19.7 billion in 2024 to LKR 21.4 billion in 2025. Personnel expenses grew by 10.40%, from LKR 10.2 billion to LKR 11.3 billion, primarily due to higher staff-related costs. Other operating expenses, including depreciation and amortization, increased by 6.54%, reflecting higher prices of consumables and services during the year. The Bank continues to implement targeted cost optimization initiatives to manage expenses efficiently.

The Bank recorded an impairment charge on Loans & Advances, Other Financial Assets, and Credit-related commitments of LKR 0.6 billion in 2025, significantly lower than LKR 6.3 billion in 2024. Impairment provisions were maintained prudently to reflect changes in the global and local economy, customer credit risk profiles, and the overall credit quality of the Bank’s loan portfolio, ensuring adequacy in the financial statements. The Bank’s asset quality ratios demonstrated continued strength, with the Impaired Loan (Stage 3) Ratio at 1.03% (2024: 2.10%) and the Stage 3 Provision Cover Ratio at 86.33% as at 31 December 2025, among the highest in the banking industry.

Income tax expenses for 2025 amounted to LKR 7.5 billion, representing a 20.47% increase over the comparative period amounting LKR 6.0 billion. Value Added Tax (VAT) on Financial Services increased from LKR 4.7 billion in 2024 to LKR 5.6 billion in 2025, a 17.69% rise. Similarly, Social Security Contribution Levy (SSCL) increased from LKR 0.7 billion to LKR 0.8 billion, marking a 17.70% increase over the corresponding year.

The Bank recorded a Profit After Tax (PAT) of LKR 12.1 billion for 2025, reflecting a growth of 20.47% compared to the corresponding period in 2024. However, when adjusted for the impact of SLISB restructuring and the resultant reversal in 2024, the underlying profit growth for 2025 would have stands at 32.78%.

The Bank’s total assets increased from LKR 780 billion in 2024 to LKR 921 billion in 2025, reflecting steady growth over the twelve-month period. The Bank actively pursued new-to-bank loans and deposits while retaining its existing customer base. Loans and Advances grew to LKR 600 billion, a net increase of LKR 137 billion, while deposits rose to LKR 733 billion, a net growth of LKR 86 billion. The Bank’s CASA ratio was maintained at 30%, supporting stable and cost-efficient funding.

As of 31 December 2025, Bank remained well-capitalized, with capital adequacy ratios comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 12.39%, while the Total Capital Ratio stood at 17.89%, reflecting a strong capital base.

The Bank maintained the Liquidity Coverage Ratio (LCR) well above the statutory requirement. All Currency LCR Ratio and the Rupee LCR Ratio were maintained at 229.92% and 227.99% respectively.

The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.03% (2024 – 2.10%) and 86.33% (2024 – 81.79%) respectively.

The Return on Equity (ROE) stood at 15.89% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.31% (2024 – 2.14%) for the year under review.

The Bank’s Earnings per Share stood at LKR 19.05 in 2025 compared to LKR 15.81 reported in previous year. The Bank’s Net Assets Value per Share stood at LKR 128.87 as at 31 December 2025 (Group – LKR 132.33).

During 2025, Seylan Bank expanded its flagship CSR initiative by opening 24 “Seylan Pahasara Libraries”, bringing the total number of libraries established to 289. This milestone underscores the Bank’s continued commitment to fostering education and supporting underprivileged schools across the island by improving access to knowledge and learning resources.

The Bank also successfully raised LKR 15 Bn Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable, 5 years and 10 years Debentures on 9th July 2025, which was oversubscribed on the same day itself.

Fitch Ratings upgraded the National Long-Term Rating of Seylan Bank to ‘A+(lka)’ by two notches with a Stable Outlook in 2025.