Seylan Bank reports PAT of LKR 6.1 Bn during H1 - 2026
Seylan Bank reports PAT of LKR 6.1 Bn during H1 - 2026
• Profit before Income Tax - LKR 9.3 Bn up by 10.10%
• Profit after Tax – LKR 6.1 Bn up by 10.78%
• Total Assets reach LKR 976 Bn
• Return on Equity (ROE) of 14.74%
• Impaired Loans (Stage 3) Ratio at 1.03%
The Bank recorded a Profit Before Income Tax (PBT) of LKR 9,298 Mn during H1 2026, compared to LKR 8,444 Mn reflecting a year-on-year growth of 10.10%.
For the 6 months ended 30th June 2026, the Bank recorded a Profit after Tax of LKR 6,080 Mn representing a growth of 10.78% compared to LKR 5,489 Mn recorded in the corresponding period of 2025.
Statement of Financial Performance
Net interest income increased to LKR 19,560 Mn from LKR 17,762 Mn, an increase of 10.12% over the comparative period mainly due to the significant growth in bank’s total assets over the last 12 months from LKR 812 Bn as end of H1 2025 to LKR 976 Bn as at 30th June 2026. The Bank’s Net Interest Margin (NIM) moderated from 4.50% in 2025 to 4.16% during H1 2026.
Meanwhile, the Bank’s net fee-based income recorded a growth of 20.85%, increasing from LKR 3,847 Mn to LKR 4,650 Mn, primarily driven by fee income from Cards, Remittances, Trade, Loans and other financial services.
Other income, comprising net gains/(losses) from trading, net gains from the derecognition of financial assets, and other operating income, increased during the period, primarily due to foreign exchange gains arising from higher trade volumes. However, this increase was partially offset by the decline in mark-to-market gains on government securities and equity investments, reflecting the impact of prevailing market interest rates and related price movements.
The Bank’s total operating income was recorded as LKR 25,542 Mn, an increase of 13.34% compared to LKR 22,536 Mn recorded in the corresponding period of 2025.
Total operating expenses increased by 14.23%, rising from LKR 10,753 Mn in H1 2025 to LKR 12,282 Mn in H1 2026. Personnel expenses grew by 12.96%, from LKR 5,801 Mn to LKR 6,553 Mn, primarily due to annual salary revisions. Other operating expenses, including depreciation and amortization, increased by 15.72%, reflecting higher prices of consumables and other related cost of services over the period. The Bank continues to implement targeted cost optimization initiatives to manage overhead costs efficiently.
The Bank recorded an impairment charge of LKR 733 Mn in H1 2026, higher than LKR 419 Mn in H1 2025 with an increase of 74.98%. 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 Loans (Stage 3) Ratio at 1.03% (2025: 1.03%) and the Stage 3 Provision Cover Ratio at 85.26% as at 30th June 2026, one of the highest in the banking industry.
Income tax expenses for H1 2026 amounted to LKR 3,218 Mn, compared to LKR 2,956 Mn reported for H1 2025. Value Added Tax (VAT) on Financial Services increased from LKR 2,564 Mn to LKR 2,833 Mn and Social Security Contribution Levy (SSCL) increased from LKR 356 Mn to LKR 396 Mn.
Statement of Financial Position
The Bank’s total assets increased from LKR 921 Bn to LKR 976 Bn during H1 2026, demonstrating a strong growth over the last six months. The Bank actively pursued new-to-bank loans and deposits while retaining its existing customer base during 1H 2026. Loans and Advances grew from LKR 600 Bn to LKR 650 Bn while deposits increase from LKR 733 Bn to LKR 771 Bn. The Bank’s CASA ratio stood at 27%.
Key financial ratios and indicators
As of 30th June 2026, Bank remained well-capitalized, with capital adequacy ratios comfortably above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 10.91%, while the Total Capital Ratio stood at 15.56%, reflecting a strong capital base.
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 187.03% and 175.88% respectively.
The Return on Equity (ROE) stood at 14.74% (2025 – 15.89%) and Return on Average Assets (profit before tax) stood at 1.98% (2025 – 2.31%) for the period under review.
The Bank’s Earnings per Share stood at LKR 9.57 in H1 2026 compared to LKR 8.63 reported in comparative period. The Bank’s Net Assets Value per Share stood at LKR 132.87 as at 30th June 2026 (Group - LKR 136.24).
During H1 2026, Seylan Bank expanded its flagship CSR initiative by opening 5 new “Seylan Pahasara Libraries”, bringing the total number of libraries established to 294. This milestone underscores the Bank’s continued commitment to fostering education and supporting underprivileged schools across the island by improving access to knowledge and learning resources.
The National Long-Term Rating of Seylan Bank, was upgrade by two notches to A+(lka) with a Stable Outlook by Fitch Ratings in 2025.