Seylan Bank records an impressive Profit after Tax (PAT) of LKR 8.33 Bn by Q3 2025

• Profit before Income Tax - LKR 12,809 Mn up by 20.75%

• Profit after Tax – LKR 8,327 Mn up by 26.30%

• Return on Equity (ROE) of 15.08%

• Total Capital Adequacy Ratio of 18.34%

• Impaired Loans (Stage 3) Ratio at 1.48%

Seylan Bank recorded a Profit before Income Tax (PBT) of LKR 12,809 Mn in Q3 2025, against LKR 10,608 Mn in Q3 2024 demonstrating a growth of 20.75%.

For the 9 months ended 30 September 2025, Profit after Tax recorded by Seylan Bank was LKR 8,327 Mn a growth of 26.30% against LKR 6,593 Mn recorded in the corresponding period of 2024.

Statement of Financial Performance 

Net interest income decreased from LKR 27,262 Mn to LKR 27,057 Mn, a marginal decrease of 0.75% over the previous year for the 9 months ended 30 September 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 4.48% in Q3 2025. The Bank’s net fee based income recorded a growth of 15.99% from LKR 5,829 Mn to LKR 6,761 Mn during Q3 2025, and growth was mainly attributed to fee income from Cards, Remittances, Trade and other financial services. 

The Bank’s total operating income for Q3 2025 was LKR 35,146 Mn, an increase of 2.57% compared to LKR 34,264 Mn recorded in the corresponding period of 2024, driven mainly by the increase net fee and commission income and other operating income during the period.

Total Operating Expenses recorded an increase of 9.38% from LKR 15,674 Mn in 2024 to LKR 17,144 Mn in 2025 for the 9 months ended 30 September 2025. Personnel expenses increased by 8.21% from LKR 8,085 Mn to LKR 8,749 Mn mainly due to increase in staff related expenses. Other Operating expenses and depreciation and amortization expenses too increased by 10.64% due to increase in prices of consumables and services over the period. The Bank continues to take relevant measures to curtail costs through various cost optimization initiatives. 

The Bank recorded an impairment charge of LKR 772 Mn in Q3 2025 against LKR 4,150 Mn reported in Q3 2024, a reduction of 81.39%. The Bank has ensured impairment provisions are made to capture changes in 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. The Bank’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio stood at an impressive 1.48% (2024 – 2.10%), while the Stage 3 Provision Cover Ratio stood at a strong 83.22% as at 30/09/2025, one of the highest in the banking industry.

Income tax expenses recorded as LKR 4,482 Mn which is a 11.64% increase over the comparative period, which stood at LKR 4,015 Mn. Value Added Tax on Financial Services increased for the first nine months from LKR 3,365 Mn to LKR 3,881 Mn in 2025 which is a 15.33% increase over the corresponding period. Social Security Contribution Levy increased for the first nine months from LKR 467 Mn to LKR 539 Mn in 2025 which is a 15.33% increase over the corresponding period. 

Overall, Bank recorded a Profit after Tax (PAT) of LKR 8,327 Mn during Q3 2025 a growth of 26.30% over the corresponding period in 2024.

Statement of Financial Position 

The Bank’s total Assets increased from LKR 780 Bn to LKR 853 Bn during Q3 2025, demonstrating a steady growth over the last nine months in 2025.  The Bank also made arrangements to canvass new to Bank Loans and Deposits while retaining it’s existing customer base. Loans and Advances of the Bank were recorded at LKR 534 Bn a net growth of LKR 71 Bn, while Deposits were recorded at LKR 675 Bn a net growth of LKR 28 Bn during Q3 2025. The Bank’s CASA ratio was maintained at 29%.

Key financial ratios and indicators

Key financial ratios and indicators of Seylan Bank PLC remained sound as of 30 September 2025. The capital adequacy ratios were well above the regulatory minimum requirements and recorded 12.24% as Common Equity Tier 1 Capital Ratio & Total Tier 1 Capital Ratio and 18.34% as the Total Capital Ratio. 

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 317.20% and 276.57% respectively. 

The Banks’s Asset Quality Ratios of Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.48% (2024 – 2.10%) and 83.22% (2024 – 80.90%) respectively.

The Return on Equity (ROE) stood at 15.08% (2024 – 15.35%) and Return on Average Assets (profit before tax) stood at 2.12% (2024 – 2.14%) for the period under review. 

The Bank’s Earnings per Share stood at LKR 13.10 in Q3 2025 compared to LKR 10.37 reported in Q3 of the previous year. The Bank’s Net Assets Value per Share stood at LKR 122.99 as at 30 September 2025 (Group LKR 126.33).

The Bank opened 20 “Seylan Pahasara Libraries” during the first nine months in 2025, taking the total number of libraries contributed to 285, which signifies the Bank’s commitment to foster wider focus on education through building of libraries in under privileged schools across the island.

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.