Seylan Bank Posts Double-Digit Growth in First Half of 2026

Seylan Bank reported a profit after tax of LKR 6.1 billion for the first half of 2026, representing 10.78% growth year-on-year, as the bank expanded its asset base and improved operational performance.

Seylan Bank demonstrated solid financial performance during the first half of 2026, with profit after tax reaching LKR 6.1 billion, up 10.78% compared to the same period in 2025. The bank's profit before income tax climbed to LKR 9.3 billion, reflecting a 10.10% increase from the previous year. The growth was supported by an expansion of the bank's asset base from LKR 921 billion to LKR 976 billion over the six-month period, according to the bank's financial statements.

Operational improvements drove much of the bank's earnings growth. Net interest income increased 10.12% to LKR 19.56 billion, benefiting from the enlarged asset portfolio, though the net interest margin moderated slightly from 4.50% to 4.16%. Fee-based income showed stronger growth, rising 20.85% to LKR 4.65 billion, primarily from cards, remittances, and trade services. Total operating income reached LKR 25.54 billion, up 13.34%, though this was partially offset by operating expenses that grew at a faster pace of 14.23%.

The bank maintained prudent provisioning practices, recording an impairment charge of LKR 733 million compared to LKR 419 million in the previous year. Asset quality remained strong, with the impaired loans ratio staying steady at 1.03% and provision cover reaching 85.26%, positioning Seylan among the stronger performers in the banking sector. The bank's capital position remained robust, with a total capital ratio of 15.56%, comfortably exceeding regulatory requirements.

Key profitability metrics showed mixed movements. Return on equity declined to 14.74% from 15.89%, while return on average assets fell to 1.98% from 2.31%. Earnings per share improved to LKR 9.57 from LKR 8.63. Beyond financial performance, the bank expanded its community initiatives by opening five new libraries, bringing the total Seylan Pahasara Libraries to 294 across Sri Lanka.