Seylan Bank’s group net profit rose 5.96% to Rs 3.08 billion in the quarter ended 30 September 2026, from Rs 2.90 billion a year earlier, interim accounts show.
Basic earnings per share came to Rs 4.82 for the third quarter, against Rs 4.54 a year earlier, EconomyNext reported.
Margins squeezed, credit costs reversed
Gross interest income grew 21.63% to Rs 25.13 billion on loan expansion, but interest expenses rose faster — up 39.71% to Rs 15.75 billion on higher deposit rates. Net interest income was effectively flat at Rs 9.38 billion, down 0.07%, as margins compressed.
Net fee and commission income rose 13.86% to Rs 2.46 billion on higher volumes in cards, remittances, trade financing and loans. Net trading losses widened sharply to Rs 2.31 billion from Rs 97.55 million, while net other operating income surged to Rs 2.27 billion from Rs 339.02 million on foreign exchange gains — the two largely offsetting each other.
Total operating income was therefore close to unchanged at Rs 11.82 billion.
The quarter’s result was carried instead by credit costs. The group booked an impairment reversal of Rs 965.30 million, against a charge of Rs 226.72 million a year earlier, which it attributed to improved borrower credit profiles and updated model forecasts. That lifted net operating income 10.35% to Rs 12.79 billion.
Costs and tax
Total operating expenses rose 12.21% to Rs 6.32 billion, with personnel costs up 13.02% to Rs 3.34 billion on annual salary revisions and other overheads up 11.32% to Rs 2.57 billion.
Operating profit before taxes rose 8.60% to Rs 6.47 billion. Value Added Tax on financial services rose 25.79% to Rs 1.66 billion, while the Social Security Contribution Levy was nil against Rs 182.84 million a year earlier. Profit before income tax rose 7.97% to Rs 4.81 billion, and income tax rose 11.75% to Rs 1.73 billion.
On the balance sheet, total assets stood at Rs 1.013 trillion, loans at Rs 688.92 billion and deposits at Rs 811.00 billion. Pawning and gold-backed lending receivables rose 38.29% to Rs 68.04 billion.
Desk verification
The reported figures reconcile internally: gross interest income less interest expenses gives net interest income; net operating income less operating expenses gives operating profit; and deducting VAT on financial services and then income tax arrives at the stated Rs 3.08 billion net profit.
The bank passed Rs 1 trillion in total assets earlier this year, a milestone this desk covered in October.
Single verified source. Quarterly interim accounts are released by the bank itself and are typically carried at this level of detail by one financial newsroom; no second verified outlet had filed comparable figures within the freshness window.
