Commercial Bank of Ceylon saw its earnings take a dip during the first quarter of 2004, largely due to losses from its primary dealer subsidiary and higher taxes.
Group profits were down 6.9 percent to Rs. 319 mn for the three month period to March 31, from Rs. 343 mn reported during the same period 2003.rn
rnThe increase in the tax liability was due to higher rates of taxation on off-shore banking profits, the Banks DGM (Finance & Planning), Ranjith Samaranayake said.rn
rnThe Primary Dealer unit, which mark to market its trading portfolio of treasury bills and bonds, got hit when interest rates began to pick up during the period under review. rn
rnThe Bank is in the process of taking necessary steps to minimise the adverse effects on its profits resulting from the mark to market losses in the future, he said.rn
rnThe banking unit saw its earnings jump by 52.64 percent to Rs. 341.3 mn during the first quarter of 2004.rn
rnPost-tax profit of the Bank for the quarter ended March 31, 2004 amoun