- Profit before Income Tax - LKR 14,044 Mn up by 9.64%
- Total Assets reach LKR 1.013 Trillion
- Return on Equity (ROE) of 14.44%
- Total Capital Adequacy Ratio of 15.14%
- Impaired Loans (Stage 3) Ratio at 1.02%
Seylan Bank reported a Profit Before Tax (PBT) of LKR 14,044 Mn in Q3 2026, compared with LKR 12,809 Mn in Q3 2025, reflecting a year-on-year growth of 9.64%.
For the nine months ended 30 September 2026, the Bank recorded a Profit After Tax (PAT) of LKR 9,116 Mn, an increase of 9.47% from LKR 8,327 Mn reported in the corresponding period of 2025.
Statement of Financial Performance
Net Interest Income increased by 6.62% to LKR 28,848 Mn for the nine months ended 30 September 2026, compared with LKR 27,057 Mn recorded in the corresponding period of 2025. This growth was primarily driven by the significant expansion in the Bank’s total assets over the year aptly supported by strong deposit mobilisation. However, the Bank’s Net Interest Margin (NIM) declined from 4.50% in 2025 to 3.99% in Q3 2026, due to the upward movement in market interest rates.
The Bank’s net fee-based income recorded a growth of 18.19%, increasing to LKR 7,110 Mn in Q3 2026 from LKR 6,015 Mn in the corresponding period of 2025. This growth was mainly attributable to increased fee income from cards, remittances, trade, loans and other financial services.
The Bank’s total operating income increased by 8.87% to LKR 37,253 Mn in Q3 2026, compared with last year’s LKR 34,218 Mn. This growth was primarily driven by increases in net interest income, net fee and commission income, net gains from derecognition of financial assets, and other operating income.
Total operating expenses increased by 13.54% to LKR 18,557 Mn for the nine months ended 30 September 2026, compared with LKR 16,343 Mn recorded in the corresponding period of 2025. Personnel expenses increased by 12.98%, from LKR 8,749 Mn to LKR 9,884 Mn, mainly due to annual salary revision. Other operating expenses including depreciation and amortisation expenses increased by 14.20%, reflecting higher prices of consumables and other related cost of services during the period. The Bank continues to implement targeted cost optimisation initiatives to manage overhead cost effectively.
The Bank recorded a net impairment reversal of LKR 232 Mn in Q3 2026, compared with a charge of LKR 645 Mn reported in Q3 2025. The Bank continues to ensure that impairment provisions adequately reflect changes in global and domestic economic conditions, the credit risk profiles of customers, and credit quality of its loan portfolio. These measures are aimed at maintaining the adequacy of provisions recognised in the financial statements. The Bank’s asset quality indicators remained stable, with the Impaired Loan (Stage 3) Ratio at 1.02% as at 30 September 2026, compared with 1.03% in December 2025. Meanwhile, the Stage 3 Provision Coverage Ratio stood at 84.98%, reflecting the Bank’s Strong provision coverage.
Income tax expenses increased by 9.96% to LKR 4,929 Mn for the nine months ended 30 September 2026, compared with LKR 4,482 Mn in the corresponding period of 2025. Value Added Tax on Financial Services and the Social Security Contribution Levy increased by 10.53%, from LKR 4,420 Mn to LKR 4,885 Mn during the first nine months of 2026.
Statement of Financial Position
During the period the Bank’s total assets surpassed the 1 Trillion mark and increased to LKR 1,013 Bn from LKR 921 Bn reported in 2025. Seylan Bank became the fourth private commercial bank in Sri Lanka to reach this milestone. The Bank continues to attract new customers for loans and deposits, while strengthening relationships with its existing customer base.
Loans and advances recorded a net growth of LKR 89 Bn, reaching LKR 689 Bn, while customer deposits increased by LKR 78 Bn to LKR 811 Bn during the first nine months of 2026. The Bank’s CASA ratio stood at 26%.
Key financial ratios and indicators
Key financial ratios and indicators of Seylan Bank PLC remained sound as at 30 September 2026. The Bank maintained capital adequacy ratios well above the regulatory minimum requirements, with both the Common Equity Tier 1 Capital Ratio and the Total Tier 1 Capital Ratio standing at 11.12%, while the Total Capital Ratio stood at 15.14%.
The Bank’s liquidity position remained strong, with the All Currency Liquidity Coverage Ratio (LCR) and the Rupee LCR recorded at 163.01% and 171.69%, respectively, both well above the minimum statutory requirements.
The Bank’s asset quality indicators remained strong, with Impaired Loan (Stage 3) Ratio standing at 1.02%, compared with 1.03% in 2025. The Stage 3 Impairment Provision Coverage Ratio stood at 84.98%, one of the highest in the Banking Industry.
The Return on Equity (ROE) stood at 14.44%, compared with 15.89% in 2025, while the Return on Average Assets (before tax) was 1.94%, compared with 2.31% in the corresponding period.
The Bank’s Earnings per Share (EPS) increased to LKR 14.34 in Q3 2026, compared with LKR 13.10 recorded in Q3 2025. As at 30 September 2026, the Net Asset Value per Share stood at LKR 136.68 for the Bank and LKR 140.09 for the Group.
During the 3Q of 2026, Seylan Bank continued to expand its flagship CSR initiative completing 8 libraries, increasing the total number of “Seylan Pahasara Libraries” established across the island to 299. Strengthening this commitment to education and community development, the Bank introduced a “Pahasara Week”, a programme for engaging with the students, principals, teachers and parents during the week preceding the opening of each library which is centered to promoting Financial Literacy together with educational and extracurricular activities.
The National Long Term Rating of Seylan Bank, was upgraded by two notches, to A+(lka) with a Stable Outlook by Fitch Ratings in 2025.
