Sri Lanka’s Commercial Bank net up 19-pct in June 2015 quarter

commercial-bank

Aug 13, 2015 (LBO) – Sri Lanka’s Commercial Bank group profit increased 19.4 percent to 2.6 billion rupees for the three months ended June 30, supported by growth in fund based operations, the bank’s interim results showed.

Gross income increased 3.4 percent to 18.8 billion rupees for the quarter and the net interest income increased by 6.6 percent to 7.6 billion rupees.

The group reported 4.1 percent increase in net fees and commission income to 1.2 billion rupees.

The group’s deposits grew 7.5 percent to 568.9 billion rupees by the end of June 2015 against 529.2 billion rupees reported by the end of December 2014.

The group loans growth was 3.0 percent to 513.0 billion rupees by the end of June.

Loan loss provisions (impairment charges) were down 28.1 percent to 1.3 billion rupees for the June quarter, the accounts showed.

Total assets were marginally up 2.3 percent to 815.9 billion rupees by the end of June 2015.

The group’s six months profit was up 14.7 percent to 5.1 billion rupees.

Interest income for the six months ended 30th June 2015 improved by 3.0 percent to 31.9 billion with interest expenses reducing by 1.3 percent to 17.0 billion in the review period.

“The volumes achieved in the first half of 2015, supported by solid fee-based operations are responsible for the significantly improved performance reflected by these figures.” the Bank’s Chairman Dharma Dheerasinghe said.

Commercial Bank has improved its gross and net non-performing loans ratios to 3.15 percent and 1.70 percent respectively from 3.47 percent and 1.86 percent as at 31st December 2014, despite interest margins narrowing to 3.70 percent during the six months reviewed from 3.88 percent as at December 2014.

The Bank’s Tier I and total capital adequacy ratios as at end June 2015 stood at 12.70 percent and 15.45 percent respectively despite the growth in Risk Weighted Assets during the review period.

“These ratios are well above minimum statutory requirements.” the Bank said.

Commercial Bank operates a network of 243 branches and 615 ATMs in Sri Lanka and is the country’s largest private bank.