Seylan Bank PLC has reported a net profit of Rs. 3.21 billion for the quarter ended 30 June 2026, a 16.3% increase on the Rs. 2.76 billion posted in the same quarter last year, according to a filing with the Colombo Stock Exchange.

Earnings came in at Rs. 5.06 per share for the three months, up from Rs. 4.35 a year earlier. Total operating income for the quarter rose 14.0% to Rs. 13.29 billion, supported by a 7.0% increase in net interest income to Rs. 9.92 billion and a 17.7% rise in net fee and commission income to Rs. 2.34 billion.

Operating expenses for the quarter grew 9.5% to Rs. 6.20 billion. The bank booked an impairment charge of Rs. 632.4 million for the three months, well above the Rs. 193.2 million recorded in the June 2025 quarter.

Half-year and balance sheet

For the six months to 30 June, Seylan reported profit after tax of Rs. 6.08 billion, a 10.78% increase on the Rs. 5.49 billion recorded a year earlier, the bank said in its results statement carried by Daily FT. Profit before tax rose 10.10% to Rs. 9.30 billion. EconomyNext put the cumulative half-year figure slightly lower, at Rs. 6.02 billion.

First-half net interest income increased 10.12% to Rs. 19.56 billion, though the bank’s net interest margin narrowed to 4.16% from 4.5% a year earlier. Net fee-based income grew 20.85% to Rs. 4.65 billion, driven by cards, remittances, trade and lending fees. Half-year impairment charges rose 74.98% to Rs. 733 million.

Total assets stood at Rs. 976 billion at the end of June, up from Rs. 812 billion twelve months earlier. Net loans and advances grew to Rs. 650 billion and customer deposits to Rs. 771 billion.

Asset quality held steady, with the impaired loans (Stage 3) ratio unchanged at 1.03% and provision cover at 85.26%. The total capital ratio was 15.56% and the Tier 1 ratio 10.91%. Return on equity was 14.74%, down from 15.89%.

During the period the bank redeemed Rs. 6.0 billion in subordinated redeemable debentures that matured in April 2026. Management noted that Fitch Ratings has upgraded Seylan’s national long-term rating to A+(lka) with a stable outlook.

Seylan shares were trading 0.41% lower at Rs. 97.60 when EconomyNext reported the results.