Comm Bank's 9-month PBT up 25% to Rs 10.9 b
The Commercial Bank of Ceylon has posted imposing 3rd quarter
results, with robust growth in gross income and profits, following
noteworthy increases in lending and strong gains in foreign exchange
income.
Sri Lanka's largest private sector bank has reported a pretax profit
of Rs 10.938 billion for the nine months ending 30th September 2012,
reflecting a growth of 25.48%. Profit after tax for the period was up
25.41% to Rs 7.646 billion.
Chairman
Dinesh Weerakkody |
Managing Director and CEO
Ravi Dias |
Reaffirming its status as one of the best performing entities in Sri
Lanka's financial sector, the Commercial Bank posted a gross income of
Rs 45.610 billion for the nine months, an increase of Rs 12.7 billion or
38.61% over the corresponding period of last year.
Within this, interest income grew by 35% to Rs 37.216 billion,
consequent to substantial expansion of the Bank's loans portfolio, while
non-interest income improved by 70.57% to Rs 7.677 billion, facilitated
by foreign exchange income of Rs 4.097 billion, which represented a
growth of 180.59%. "Our results continue to be encouraging on all
fronts, even in a changing environment. Building on our momentum with a
focus on core banking, the Bank posted a solid monthly average growth in
both loans and deposits amounting to Rs 4.5 billion and Rs 5.9 billion
respectively, during the period under review," said Chairman Dinesh
Weerakkody. "Such an exemplary performance reinforces the key role
played by the Commercial Bank in the national economy."
The Bank's Managing Director and CEO, Ravi Dias added that, "This
nine-month performance was achieved despite a significant increase in
the cost of interest-bearing liabilities, due to the prevailing high
market interest rates."
The Bank's net interest income for the nine months improved by 19.33%
to Rs 16.013 billion, while interest expenses grew by 50.06% to Rs
21.202 billion, in response to the comparatively higher interest rates
that prevailed. Within non-interest income, an increase in the volume of
foreign currency operations of the Bank and the translation gains
recognised consequent to the depreciation of the Sri Lanka Rupee against
the US Dollar during the nine months, combined to boost foreign exchange
income.
In addition, the other income of the Bank, which mainly comprises of
commission income and investment income, recorded an increase of 17.75%
and reached Rs 3.580 billion.
Commercial Bank's Gross Loans & Advances stood at Rs 329.071 billion
as at 30th September 2012, an increase of Rs 41.108 billion or 14.28%
from 31st December 2011. Total deposits grew by Rs 53.442 billion or
16.78% over the same period to Rs 371.904 billion.
Total assets increased by 12.97% from Rs 441.099 billion at 31st
December 2011 to Rs 498.299 billion at the end of the review period.
Net provisions for bad and doubtful debts increased to Rs 1.250
billion,as against a net reversal of Rs 480.7 million for the first nine
months of 2011, principally, as a result of a more stringent provision
policy adopted by the Bank.
Non-interest expenses increased by 17.89% to Rs 10.005 billion,
largely on account of increased personnel costs and premises, equipment
and establishment expenses linked to the expansion of the Bank's
delivery channels in Sri Lanka. The Bank opened 11 new service points
and added 38 new terminals to its ATM network during the nine months
reviewed.
The Bank's total capital adequacy ratio stood at 13.51% as at 30th
September 2012, as against the prescribed minimum of 10%. The gross and
net non-performing advances ratios increased to 3.72% and 2.18%
respectively at the end of the 3rd quarter. Return on assets before tax
and return of equity improved to 3.1% and 21.41% respectively.
As a Group, the Commercial Bank of Ceylon PLC, its subsidiaries and
associates recorded pre-tax profit of Rs 10.942 billion, a growth of
24.99%. Group profit after tax for the period increased by 24.83% to Rs
7.624 billion.
The largest private bank in Sri Lanka, Commercial Bank is the only
Sri Lankan Bank to be listed two years consecutively in the world's Top
1000 Banks. The Bank operates a network of 225 service points in Sri
Lanka and a network of 541 ATMs, the single largest ATM network operated
by a bank in the island. It also operates 17 service points in
Bangladesh.
The Bank has been adjudged 'Best Bank in Sri Lanka' forthe14
consecutive year,by 'Global Finance' Magazine, and has won multiple
awards as the country's best bank from 'The Banker,' 'FinanceAsia,' 'Euromoney'
and 'Trade Finance' magazines, according to a news release. |