Commercial Bank of Ceylon said its post tax profits rose 21 percent for the six months ended June 30, 2005, despite hikes in taxation and an appreciating rupee. Commercial Bank of Ceylon said its post tax profits rose 21 percent for the six months ended June 30, 2005, despite hikes in taxation and an appreciating rupee. Group net profits topped Rs. 873.9 million over Rs 152.8 million reported during the corresponding period 2004, the bank said in a statement on Thursday.
Income during the period was up 24 percent to Rs 1.381 billion, mainly due to a 32 percent growth in Interest Income to Rs 5.903 billion and a 26 percent increase in Other Income to Rs 997.2 million.
The bank said the effective tax rate had risen from 35 percent last year to 40 per cent in 2005 mainly as a result of recent changes in tax laws.
Growth in pre-tax profit of Rs. 1.4 billion was achieved despite translation losses amounting to Rs 290.3 million which had to be absorbed in the first half of 2005 as against a translation gain of 53.8 million for the first half of last year.
This unusual loss was incurred consequent to the sharp appreciation of the Rupee against the U