Commercial Bank posts robust 9-month results
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 30 September 2017, a growth of 20.25% on strong operational gains and tight control of expenditure, a press release stated.
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 private bank said in a filing with the Colombo Stock Exchange (CSE), the release added.
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. He also disclosed that the Bank's capital funds stood at over Rs. 90 billion and hence was well above the Rs 20 billion specified under the minimum capital standards announced in a recent regulation for licensed banks in Sri Lanka.
Commercial Bank's assets grew by Rs 86.785 billion or 8.57% over the nine months to Rs 1.099 trillion as at 30 September 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. The loan book's growth since September 2016 was Rs 132.961billion or 23.14%, at a monthly average of more than Rs 11 billion over the preceding 12 months.
The Bank continued to make noteworthy progress in reducing impairment charges for loans and other losses during the nine months reviewed from Rs 1.804 billion to Rs 1.494 billion, an improvement of 17.14%. This was made possible by enhancements in the quality of its loan book, as evidenced by reduced NPL ratios, the Bank said. The Bank's gross and net NPL ratios stood at 2.02% and 1%, respectively at 30 September 2017, from 2.18% and 1.09% at end December 2016, and 2.49% and 1.26% a year ago.
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 30 September 2017, reflecting average monthly growth of Rs 8.778 billion. Growth of the deposit base over the preceding 12 months was Rs 108.107 billion at an average of Rs 9 billion per month, recording YoY growth of 15.22%.
A drop in exchange profits as a result of a drop inswap premiums during the review period as against an increase in swap premiums last year, resulted in total operating income growing by 12.37% to Rs 35.962 billion.
Net operating income however , increased by 14.14% to Rs 34.467 billion through the improved impairment charges owing to lower NPL ratios.
Shareholder funds crossed the Rs 100 billion mark for the first time to Rs 102.519 billion as at 30 September 2017, an increase of Rs 24.165 billion or 30.84%, consequent to the rights issue of shares, a reversal of mark to market losses on the Bank's Available for Sale (AFS) portfolio and the profits of the nine months. The growth of shareholder funds over the preceding 12 months was Rs 26.756 billion or 35.31% YoY.
The Bank's earnings per share value for the nine months was Rs 12.30, reflecting an improvement of 9.82%. Net assets value per share post rights issue totalled Rs 103.02, an increase of 17.11% since December 2016. Return on assets before tax was 2.06% and return on equity 17.26%. The Bank's interest margin improved marginally to 3.58% as against 3.47% for the whole of 2016.
In terms of Capital Adequacy Ratios, the Bank's Common Equity Tier 1 capital ratio at 12.30% as at 30 September 2017 was almost double the 6.25% required under Basel III. The Tier I Capital Ratio (Basel III requirement – 7.75%) was 12.30% and the Total Capital Ratio (Basel III requirement– 11.75%) was 16.24%.
At Group level, Commercial Bank, its subsidiaries and associates reported profit before tax of Rs 16.406 billion for the nine months reviewed, an improvement of 17.13%. Profit after tax for the period was up 15.49% to Rs 11.774 billion.
Sri Lanka's largest and most profitable private bank and the country's most-awarded financial institution, Commercial Bank plays a significant role in the national economy, the press release stated.
It added that the Bank accounted for 4.65% of the total market capitalisation of the CSE with a market capitalisation of US$ 887 million at end of September 2017.
The Bank is the largest lender in Sri Lanka to SMEs, having disbursed Rs 952 billion to the sector over the past five years, and channelled 17.82% of the country's export volumes and 8.36% of its import volumes during 2016.
- Independent Trajectory for India-Israel Ties
- Saudi Arabia’s heir apparent Crown Prince bin Salman and stake to greatness
- Interpreting Germany’s New Grand Coalition Deal: A First Assessment
- India’s IT Minister in SL
- PCoI bond scam report Over 60 MPs could be exposed – SLFP
- Off duty soldier tracks hit-and-run driver Police send letter of appreciation to Army HQ
- Mohammad Shiyam murder case appeal Vass denies threatening CID Director
- 5th Indo-SL Defence Dialogue concludes in Delhi
- Further evidence on Gammanpila- Shaddock case on 26th
- Impressed with Kite Festival Minister promises new fishing harbour for VVT
- Muslim women should enter politics – Dr. Uthumalebbe
- SEUSL VC urges undergrads to focus on education
- LG elections Vote-buying could lead to removal CaFFE warns candidates
- Motorcyclists Association complains to CJ Accuses Mathugama Chief Magistrate of bias
- Singapore PM & Indonesian President due next week
- Justice Surasena appointed President of CoA L.T.B. Dehideniya elevated to SC
- Fmr NFF Member Premalal Fonseka joins MS/SLFP Maheepala Herath supports ‘Pohottuwa’
- Namal’s money laundering case postponed to 6 Feb
- Kuruwita prisoner alleged torture case Complaint to be handed over to UN
- Asia’s largest haul of cocaine destroyed President Sirisena oversees process
- Missing women & PTA detainees Sasitharan urges families to register
- SLMC rally attacked in Palamunai Hakeem blames Bathiudeen’s ACMC
- Tissa gang-rape victim dies Suspects could be tried for murder
- President’s confidants named in PRECIFAC report JVP
- Supreme Court decides President’s term is five years Presidential Election Next Year President’s term ends in December 2019
- Selection of volleyball coaches Law violators to attend Interview?
- ‘Singer Cup’ Under-19 Schools Cricket Munasinghe scores century
- Tamim steers Bangladesh
- Louis denies creating a stir at meeting
- Jasprit Bumrah wickets follow Kohli century for India
- Houston Marathon in freezing weather Hiruni shatters SL record Qualifies for Commonwealth Games 2018
- “Nidahas Trophy 2018” SLC formally invites Bangladesh
- 12th ICC Under-19 Cricket World Cup Bangladesh record second win
- Sri Lanka Rugby Referees Association Jamaldeen unanimously re-elected President
- ‘Singer Cup’ Under-13 Division II Schools Cricket Mahanama, Henegama and Galahitiyawa advance
- Liverpool stun City
- Peterhansel rebounds as Sainz keeps Dakar lead
- Venus and Stephens crash out of Australian Open
- Suarez fires Barcelona nine clear
- I’m too old to be favourite - Federer
- Tri Nation series begins today Bangladesh, Sri Lanka, Zimbabwe seek to rebuild
- 12th ICC Under-19 Cricket World Cup Sri Lanka triumph by 7 wickets
- Premier League Tier A Milantha scores twin centuries Chilaw Marians register fourth win
- 700 wickets and 7000 runs Dilruwan reaches milestone in first class cricket
- Hathurusinghe savours new challenge
- Sri Lanka worst in Moody’s Asia Pacific ratings
- SL at 66th in WEF’s Manufacturing Index
- Kerawalapitiya-II gets greenlight
- Plans for multi-country trade hub in Sri lanka
- CEB picks swiss firm for vehicle charging network in Sri Lanka
- A tribute to a gentleman par excellence
- Brent crude oil rises to $70 on output cuts
- Airbus says A380 superjumbo production could end
- Asian shares gain as the dollar continues to struggle
- Slowdown in international trade and its impact on globalization
- Ford plans US$ 11 billion investment 40 electrified vehicles by 2022
- Sampath Bank engages with SMEs
- LB Finance crowned No 1 Finance and Leasing Brand in SL
- Hyundai Motor and Grab sign strategic partnership
- Mastercard holds Digital and Innovation Workshop in SL
- Zuckerberg aims to save Facebook from itself
- Is economic struggle driving North Korea to the negotiating table?
- Altair sponsors 146th AGM of Colombo Club
- From challenges to opportunities: The success of DSI Samson Group
- BMICH staff presents Carols
- The March of Folly Dr. Ranjith Atapattu, an exemplary figure
- Liberia’s development at risk
- Politicos’ image plummets to lowest ebb
- UN Agency says Losing US funds could be ‘catastrophic’ for Palestinians
- Central Bank Bond issue Opportunity to reveal true culprits lost
- ‘We don’t want to fool the Sinhalese and get our dues’
- Rohingya insurgents say 10 found in Myanmar grave ‘innocent civilians’
- Thalaivar’s New Avatar
- TNA: How better is ‘better’?
- Wi-Fi but no water: Can smart tech help a city's poor?
- No political solution for Tamil grievances in sight – Ananthy Sasitharan
- Division in SLFP main reason for UNP victory
- We don’t endorse Basil’s leadership
- Rogues in all Govts should be punished- Akila Viraj Kariyawasam
- EPRLF trying to create confusion – Thurairasasingham
- National Prosperity Turning the Tide
- Disposable coffee cups:British lawmakers call for “latte levy”
- If only we could crackdown on the root causes to effect sustainable solutions Herein lies a Nation’s progress
- Planetary combines that foreshadow misfortune for father
- Pirith chants for abundant harvest
- Venus into Capricorn
- Vastu and Domestic Animals
- Yoga for Children and Adults with Disabilities
- Notes on history: The thinkers and the doers
- Reflections on a nation of non-readers
- The Disaster Artist: The (un)making of a movie
- Our children and our cinema
- INTERPRETING ASIAN CINEMA: CHALLENGES AHEAD
- How Sanskrit journalism is slowly hogging headlines
- ice manufacturing in South Asia
- CMSC’s season finale concert
- Kite Surfing Lanka Kalpitiya An experience of a lifetime
- Ella and mini Adam’s Peak
- A cave of history -Ravana Cave
- Trump’s ‘madman’ ACT scared N. Korea to talks
- Calls for ‘revenge’ Israeli settler killed in attack
- Banning of Colombo Journal First English Newspaper
- Sri Lankan author publishes for the world
- Broadway brought to our own shores
- Celebrating the harvest