The Rs.700 million Voluntary Retirement Scheme (VRS) dragged down the profitability of Seylan Bank, as the former Ceylinco group bank recorded a net loss of Rs.304 million in the second quarter 2011 against a net profit of Rs.312 million in the same quarter of the previous year.
However, according to the financials presented to the Colombo Stock Exchange, even excluding the VRS cost, the bank’s pre-tax profit was down 44 percent year-on-year to Rs.383 million.
The bank recorded a loss per share of Rs.4.79 against last year’s earnings per share of Rs.4.92. The interest income of Seylan grew 8.4 percent to Rs.2.97 billion and interest expenses fell at a faster rate of 9.3 percent to Rs.1.97 billion. Group performing loans and advances rose 8.9 percent to Rs.76.3 by end June from December 2010.
However, a 324 percent increase or Rs.100 million increase in provisions for decline in value of investment can be seen in the financial accounts.
In the meantime, another sharp increase of 205% or Rs.272 million increase has been accounted for impairment loss.
Seylan had raised Rs.4.6 billion from a rights issue in June.
source - www.dailymirror.lk
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