BoC records Rs. 5.9b profit for 2006

Hiran H. Senewiratne

PROFITS: The Bank of Ceylon's (BoC) annual income increased by 29 per cent from Rs 27.32 billion to Rs 35.10 billion in 2006 which is more than double the corresponding increase of 14 per cent in the previous year, its Chairman Udayasri Kariyawasam said.

He said that due to the adaptation of a sound management system, 131 out of the 300 branches were able to register an operational profit last year.

In the previous year, it was only 37 branches that reported operational profits. Annual profit before VAT and income tax increased by 46 per cent from Rs 4.033 billion in 2005 to Rs 5.90 billion in 2006, which is more than half times the corresponding increase of 18 per cent in the previous year.

The Bank's assets grew by 18 per cent from 319 billion to Rs 378.30 in 2006. The total contribution due to the Government (comprising dividend, VAT and income tax) increased by 50 per cent from Rs 2,57 billion in 2005 to Rs 3.84 billion in 2006 which is almost three times the corresponding increase of 17 per cent in the previous year.

BoC's domestic rupee deposits grew by 22 per cent from 140.87 billion in 2005 to Rs 172.38 billion in 2006 as against the corresponding increase of 14 per cent in previous year.

Foreign currency deposits slightly decrease from Rs 91.64 billion in 2005 to Rs 90.29 billion in 2006. The Chairman said BoC obtained the largest syndicated loan which is the largest loan taken by any Sri Lankan company from leading international leading banks.

This was due to the maintenance of the balance sheet and maintaining the AA rating. BoC General Manager B.A.C. Fernando said as Sri Lanka's No 1 bank, they have taken the initiative and made a huge investment to link all the branches in all parts of the country into Sri Lanka's biggest online branch network.

He said that currently they have more than 500 online service points located all over the country, comprising branch offices and ATMs.

Through the country 's largest online branch network, which they are planning to introduce online, facilities in core banking, fund management and branch network. Further, they are now in the process of bringing online facilities in core banking, trade, finance to large and small enterprises as well as individuals both in urban and rural areas, he said.

Chief Financial Officer Saliya Rajakaruna said the BoC is the highest ranked Sri Lankan bank in the Bankers Almanac, with the largest asset base worth over Rs 400 billion.

It has the largest capital base of Rs 18 billion among local banks and the highest single borrower exposure up to Rs 7.3 billion.

It has the largest customer base with 6.2 million accounts and the largest online network with over 500 online service point.