Seylan Bank PLC has reported a profit after tax of Rs. 2.91 billion for the first quarter of 2026, up 5.25% from Rs. 2.76 billion in the corresponding quarter last year, the lender said in disclosures carried by the Daily FT.
Net interest income rose 13.37% to Rs. 9.73 billion, supported by an asset base that expanded from Rs. 785 billion at end-Q1 2025 to Rs. 943 billion at March 31, 2026. The Net Interest Margin moderated to 4.23% from 4.5% a year earlier. Net fee-based income grew 24.04% to Rs. 2.31 billion, driven by cards, remittances and trade-related services. Total operating income rose 12.57% to Rs. 12.38 billion.
Operating expenses climbed 19.4% to Rs. 6.13 billion, with personnel costs up 15.41% on annual revisions and other operating costs up 24.21% on consumables, card-related expenses and depreciation. The bank’s impairment charge fell sharply to Rs. 100 million from Rs. 225 million a year earlier, a 55.57% reduction.
Asset quality remained among the strongest in the industry, the bank said. The Stage 3 (impaired loan) ratio held steady at 1.01% (2025: 1.03%), while the Stage 3 Provision Cover Ratio was 86.23% as at March 31. Loans and advances stood at Rs. 628 billion and customer deposits at Rs. 743 billion, with a CASA ratio of 28%.
Capital and liquidity ratios remained well above regulatory thresholds. Common Equity Tier 1 and Tier 1 Capital ratios were 11.4%, with Total Capital Ratio at 16.38%. The All-Currency Liquidity Coverage Ratio was 192.49% and the Rupee LCR 188.3%. Earnings per share rose to Rs. 4.57 (2025: Rs. 4.34) and net asset value per share to Rs. 128.86. Return on equity was 14.39% (2025: 15.89%) and pre-tax return on assets 1.98% (2025: 2.31%).
Seylan said it had opened two more “Seylan Pahasara” libraries during the quarter, taking the network to 291. Fitch Ratings, which also rated Sampath Bank’s Rs. 10 billion green bond issue in April, upgraded Seylan by two notches to A+(lka) with a Stable Outlook in 2025. The results come as the CBSL pushes Sri Lankan banks toward consolidation to build stronger balance sheets across the sector.
