Seylan Bank reported stronger earnings for the first six months of 2026 as growth in lending and fee-based services helped lift profitability despite higher operating costs and impairment provisions.
The bank recorded a Profit Before Income Tax (PBT) of Rs. 9,298 million, up 10.10% from Rs. 8,444 million in the same period last year. Profit After Tax (PAT) rose 10.78% to Rs. 6,080 million from Rs. 5,489 million.
The latest results come as banks continue to expand lending while adapting to changing market conditions and customer demand for banking services.
Lending and customer activity drive growth
Seylan Bank continued to grow its lending business during the first half of the year. Loans and advances increased from Rs. 600 billion to Rs. 650 billion, while customer deposits rose from Rs. 733 billion to Rs. 771 billion. Total assets also grew to Rs. 976 billion by the end of June, compared with Rs. 921 billion at the end of 2025.
Net interest income increased 10.12% to Rs. 19,560 million, supported by the bank’s larger lending portfolio.
Fee-based income recorded even stronger growth, rising 20.85% to Rs. 4,650 million. Higher income from cards, remittances, trade finance, loans and other banking services contributed to the increase.
The bank also reported higher foreign exchange income as trade volumes improved during the period. However, lower gains from government securities and equity investments partly offset that growth.
Higher costs offset by stronger earnings
Total operating income increased 13.34% to Rs. 25,542 million during the first half of the year.
Operating expenses also increased as the bank raised staff salaries and faced higher day-to-day operating costs. At the same time, impairment charges rose to Rs. 733 million from Rs. 419 million a year earlier, reflecting changes in customer credit risk and the quality of the loan portfolio.
Despite these higher costs, the bank improved its overall profitability while maintaining an impaired loan ratio of 1.03%. It also continued to maintain capital and liquidity levels above the minimum regulatory requirements.
Outside its core banking business, Seylan Bank expanded its Seylan Pahasara Libraries programme by opening five new libraries, bringing the total to 294. The initiative supports underprivileged schools by improving access to books and learning resources.
During the period, the bank also retained its A+(lka) National Long-Term Rating with a Stable Outlook from Fitch Ratings.
Banking & Finance Financial Performance
Last modified: August 1, 2026
