The Commercial Bank of Ceylon PLC has reported profit of Rs 19.718 billion before VAT and NBT on financial services for the nine months ending September 30, 2017, a growth of 20.25% on strong operational gains and tight control of expenditure.
Profit before tax grew by 16.88% to Rs 16.232 billion, amidst an increase in the VAT rate on financial services from 11% to 15%. Profit after tax for the nine months was up 15.01% to Rs 11.675 billion, the country’s benchmark private bank said in a filing with the Colombo Stock Exchange (CSE).
Gross income for the period at Rs 84.568 billion reflected an improvement of Rs 17.700 billion or 26.47% over the first nine months of 2016, with interest income growing by 30.03% to Rs 75.669 billion.
Interest expenses increased to Rs 47.427 billion growing by 39.75% principally due to an increased demand for fixed deposits in the review period, resulting in net interest income growing by 16.44% to Rs 28.242 billion.
Fee and commission income increased by 28.67% to Rs 7.330 billion and as a result net fees and commissions made a significant contribution, increasing by 29.03% to Rs 6.151 billion.
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% - just Rs 949.114 million 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 Managing Director Jegan Durairatnam noted that the Bank ended the nine months with capital ratios that were substantially higher than those required under Basel III which came in to effect in July this year.
Commercial Bank’s assets grew by Rs 86.785 billion or 8.57% over the nine months to Rs 1.099 trillion as at September 30, 2017. The increase over the preceding 12 months was Rs 145.687 billion at a monthly average of more than Rs 12 billion, reflecting YoY growth of 15.28%. Net loans and receivables from customers stood at Rs 707.431 billion at the end of the review period, recording an increase of Rs 91.413 billion or 14.84% since end December 2016, an average growth in excess of Rs 10 billion per month.
Total deposits of the Bank grew by Rs 79.001 billion or 10.68% since end December 2016 to Rs 818.564 billion as at September 30, 2017, reflecting average monthly growth of Rs 8.778 billion.
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