Nov 14, 2017 (LBO) – Sri Lanka’s Commercial Bank of Ceylon PLC has reported profit of 19.718 billion rupees before VAT and NBT on financial services for the nine months ending 30th September 2017, the Bank said.
This is a growth of 20.25 percent on strong operational gains and tight control of expenditure.
Profit before tax grew by 16.88 percent to 16.232 billion rupees, amidst an increase in the VAT rate on financial services from 11 to 15 percent.
Profit after tax for the nine months was up 15.01 percent to 11.675 billion rupees.
Gross income for the period at 84.568 billion rupees reflected an improvement of 17.700 billion rupees or 26.47 percent over the first nine months of 2016, with interest income growing by 30.03 percent to 75.669 rupees billion.
Interest expenses increased to 47.427 billion rupees growing by 39.75 percent principally due to an increased demand for fixed deposits in the review period, resulting in net interest income growing by 16.44 percent to 28.242 billion rupees.
Fee and commission income increased by 28.67 percent to 7.330 billion rupees and as a result net fees and commissions made a significant contribution, increasing by 29.03 percent to 6.151 billion rupees.
Commenting on the Bank’s performance at the end of the third quarter, Commercial Bank Chairman Dharma Dheerasinghe said the Bank had restricted the growth of expenses to 6.88 percent – just 949.114 million rupees more than that of the corresponding period of last year.
“We continue to improve the quality of our loan book leading to further reductions in our NPL ratios and focussed on growing volumes in core business areas,” he said.
Commercial Bank’s assets grew by 86.785 billion rupees or 8.57 percent over the nine months to 1.099 trillion rupees as at 30th September 2017.
Net loans and receivables from customers stood at 707.431 billion rupees at the end of the review period, recording an increase of 91.413 billion rupees or 14.84 percent since end December 2016, an average growth in excess of 10 billion rupees per month.