Seylan Bank reports PAT of LKR 2.91 Bn in Q1 – 2026

The Bank recorded a Profit Before Income Tax (PBT) of LKR 4,548Mn in Q1 2026, against LKR 4,199 Mn reflecting a growth of 8.31%. For the three months ended 31st March 2026, Profit after Tax recorded by Seylan Bank was LKR 2,906 Mn with a growth of 5.25% against LKR 2,761 Mn recorded in the corresponding period of 2025.

Net interest income increased from LKR 8,587 Mn to LKR 9,734 Mn, an increase of 13.37% over the previous year for the 3 months ended 31st March 2026 mainly due to the significant growth in bank’s assets base over the last 12 months from LKR 785 Bn as end of Q1 2025 to LKR 943 Bn as at 31st March 2026. The Bank’s Net Interest Margin (NIM) also moderated from 4.50% in 2025 to 4.23% duringQ1 2026.

Meanwhile, the Bank’s net fee-based income recorded a growth of 24.04%, increasing from LKR 1,863Mn  to LKR 2,311Mn, primarily driven by fee income from Cards, Remittances, Trade, and other financial services.

Other income captions comprising of net gains / losses from trading, net gains from derecognition of financial assets and net other operating income, reflected a reduction mainly due to decline in mark to market gains from government securities and equity investments with the prevailing market interest rates and price movements, however exchange income showedan increase, due to higher forex trade volumes. The Bank’s total operating income was recorded as LKR 12,375 Mn, an increaseof 12.57% compared to LKR 10,994Mn recorded in the corresponding period of 2025, driven mainly by the increase in net interest income, net fee and commission income.

Total operating expenses increased by 19.40%, rising from LKR 5,135Mn in Q1 2025 to LKR 6,131Mn in Q1 2026. Personnel expenses grew by 15.41%, from LKR 2,806Mn to LKR 3,238 Mn, primarily due to annual revision tostaff-related costs.

Other operating expenses, including depreciation and amortization, increased by 24.21%, reflecting higher prices of consumables, card related expenses and other related services over the period. The Bank recorded an impairment charge of LKR 100Mn in Q1 2026, lower than LKR 225Mn in Q1 2025 with a reduction of 55.57%.The Bank has ensured Impairment provisions are made 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 of provisions recognized in the financial statements. The Bank’s asset quality ratios demonstrated continued strength, with the Impaired Loan (Stage 3) Ratio at 1.01% (2025: 1.03%) and the Stage 3 Provision Cover Ratio at 86.23% as at 31 March 2026, among the highest in the banking industry.

Income tax expenses for Q1 2026 amounted to LKR 1,643Mn, compared to LKR 1,438 Mn reported for Q1 2025. Value Added Tax (VAT) on Financial Services increased from LKR 1,260 Mn to LKR 1,402 Mn and Social Security Contribution Levy (SSCL) increased from LKR 175 Mn to LKR 195 Mn, marking a 11.25% increase over the corresponding period.

The Bank recorded a Profit After Tax (PAT) of LKR 2,906 Mn during Q1 026, reflecting a growth of 5.25% compared to the corresponding period in 2025.

Source: Daily News