Seylan Bank has announced its financial results for the year ending December 31, 2025, showcasing significant growth in profitability. The Bank achieved a Profit Before Tax (PBT) of LKR 19.6 billion, marking a 22.3% increase from the LKR 16.0 billion reported in the previous year. The Profit After Tax (PAT) reached LKR 12.1 billion, a 20.5% rise from LKR 10.0 billion in 2024, representing the highest annual profit in the Bank’s 37-year history and reflecting its robust financial performance.
Statement of Financial Performance
Net interest income rose to LKR 38.3 billion in 2025, up from LKR 36.7 billion in 2024, indicating a modest 4.21% growth due to the expansion of the loan book, reduction in market interest rates, and repricing of loans, deposits, and government securities. The Bank’s Net Interest Margin (NIM) decreased from 4.90% in 2024 to 4.50% in 2025. Net fee-based income increased by 16.34%, rising from LKR 7.2 billion to LKR 8.3 billion, driven primarily by income from Cards, Remittances, Trade, and other financial services.
The total operating income for 2025 was LKR 48.1 billion, a 13.00% increase from LKR 42.6 billion in 2024, mainly due to higher net interest income, net fee and commission income, and other operating income. Operating expenses rose by 8.53%, from LKR 19.7 billion in 2024 to LKR 21.4 billion in 2025, with personnel expenses increasing by 10.40% from LKR 10.2 billion to LKR 11.3 billion. Other operating expenses, including depreciation and amortization, grew by 6.54%, reflecting higher prices of consumables and services.
The Bank recorded an impairment charge on Loans & Advances, Other Financial Assets, and Credit-related commitments of LKR 0.6 billion in 2025, significantly lower than the LKR 6.3 billion in 2024. The Impaired Loan (Stage 3) Ratio was 1.03% (2024: 2.10%), and the Stage 3 Provision Cover Ratio was 86.33% as of December 31, 2025, among the highest in the industry.
Income tax expenses for 2025 were LKR 7.5 billion, a 20.47% increase from LKR 6.0 billion in the previous year. VAT on Financial Services rose by 17.69%, from LKR 4.7 billion in 2024 to LKR 5.6 billion in 2025. Similarly, the Social Security Contribution Levy increased by 17.70%, from LKR 0.7 billion to LKR 0.8 billion.
The PAT of LKR 12.1 billion for 2025 reflects a 20.47% growth compared to 2024. However, adjusting for the SLISB restructuring impact, the underlying profit growth for 2025 would stand at 32.78%.
Statement of Financial Position
The Bank’s total assets increased from LKR 780 billion in 2024 to LKR 921 billion in 2025, indicating steady growth. Loans and Advances grew to LKR 600 billion, a net increase of LKR 137 billion, while deposits rose to LKR 733 billion, a net growth of LKR 86 billion. The Bank maintained a CASA ratio of 30%, ensuring stable funding.
Key Financial Ratios and Indicators
As of December 31, 2025, the Bank was well-capitalized with capital adequacy ratios above regulatory minimums. The CET1 and Total Tier 1 Capital Ratios were 12.39%, and the Total Capital Ratio was 17.89%. The Liquidity Coverage Ratio (LCR) was maintained above the statutory requirement, with All Currency LCR Ratio and Rupee LCR Ratio at 229.92% and 227.99%, respectively.
The Impaired Loan (Stage 3) Ratio and the Impairment (Stage 3) Provision Cover Ratio stood at 1.03% (2024: 2.10%) and 86.33% (2024: 81.79%), respectively. The Return on Equity (ROE) was 15.89% (2024: 15.35%), and the Return on Average Assets (Profit Before Tax) was 2.31% (2024: 2.14%). Earnings per Share were LKR 19.05 in 2025, compared to LKR 15.81 in 2024, while the Net Assets Value per Share was LKR 128.87 (Group: LKR 132.33) as of December 31, 2025.
In 2025, Seylan Bank expanded its CSR initiative by opening 24 “Seylan Pahasara Libraries,” bringing the total to 289. This effort underscores the Bank’s commitment to education and supporting underprivileged schools by enhancing access to knowledge and learning resources.
The Bank also raised LKR 15 billion through Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable debentures on July 9, 2025, which was oversubscribed on the same day. Fitch Ratings upgraded Seylan Bank’s National Long-Term Rating to ‘A+(lka)’ with a Stable Outlook in 2025.
