ComBank profit tops Rs 6 b at 3Q
Interest income generated by the growth of its loan book, gains from
the reduced effective tax rate and a noteworthy contribution from
non-interest income have enabled Commercial Bank of Ceylon to accelerate
profit growth in the first nine months of 2011 and post sector-leading
financial results.
Chairman M Amarasuriya |
MD A Gooneratne |
Releasing its interim income statements for the nine months ending
September 30, 2011, bank announced that Profit Before Tax had grown by
nearly Rs 2 billion or 33.7 per cent over the corresponding period of
last year to reach Rs 8.717 billion.
Profit after tax increased by an outstanding 63.56 per cent to cross
Rs 6 billion (Rs 6.097 billion) as against Rs 3.727 billion for nine
months of 2010, as the effective tax rate for the review period,
including the Bank’s operations in Bangladesh, reduced to 30.05 percent
from 42.82 percent in the previous year as a result of the reduction of
the corporate tax rate and VAT on financial services.
Total Income of the Bank for the nine months was Rs 32.904 billion,
reflecting a growth of 8.53 percent. The Interest Income component
recorded growth of 7.63 percent to Rs 27.548 billion as at September 30,
2011, with Interest Income from Loans and Advances increasing by a
healthy 20.63 percent (more than Rs 3.5 billion) to Rs 20.589 billion
and Non-interest Income (commission, investment and foreign exchange
income) growing by 11.13 percent to Rs 4.501 billion. Net Interest
Income improved by 14.36 percent to Rs 13.420 billion.
The Bank attributed the lower rate of growth of total interest income
comparative to the growth of some of the individual components that make
up the total, to reduced Interest Income from other interest-bearing
assets such as Treasury Bills and Bonds due to the lower yields on these
assets in the review period. Interest income from this source declined
from Rs 8.528 billion at the third quarter of 2010 to Rs 6.960 billion
for the nine months reviewed.
Commercial Bank Managing Director Amitha Gooneratne said: “What we
are witnessing is the combined effect of size and momentum, supported by
a solid foundation of customer trust and unwavering commitment to
excellence in operational fundamentals. Although our operations are
expanding rapidly, entailing higher capital and recurrent expenditure,
and yields from interest-bearing investments are lower, the Bank has
stepped up the pace growth.” |