Seylan Merchant Bank Ltd (SMBL) increased its losses (losses attributable to shareholders) from Rs 673,458 to Rs 47.67 million for the nine-month period ended September 30 of last year, when compared with the corresponding period in 2000, data on the company’s unaudited accounts for the period under review showed.

Meanwhile, the company increased its carry forward losses from Rs. 146.8 million to Rs 211.4 million during the period under review. A contributory factor to this was because retained losses brought forward during this period also increasing from Rs 146.2 million to Rs 211.4 million, the company’s accounts showed.

As a result, shareholders’ funds during the period under review declined from Rs 200.2 million to Rs 135.6 million, according to data on the company’s unaudited balance sheet.

Meanwhile, SMBL’s profit & loss (p & l) account showed that a decrease in interest income by Rs 18.7 million and an increase in interest expenses by Rs 34.1 million during the period under review appears to have been the main reasons for the bank increasing its losses during this period.

Interest income during the period declined from Rs 226.5 million to Rs 207.8 million, while interest expenses increased from Rs 181 million to Rs 215.1 million. This resulted in a net interest income of Rs 45.52 million, turning into a net interest loss of Rs 7.326 million during the period under review.

Operating expenses such as personnel costs amounting to Rs 22.18 million, ‘premises, equipment and other overheads’ - Rs 27.17 million and ‘loan losses and provisions’- Rs 12 million, caused further pressure on the company’s p & l account, resulting in the bank recording a loss of Rs 47.67 during the period. (PA)