Sri Lankaâ€™s Com Bank December net up 12-pct to Rs4.8bn
ECONOMYNEXT – Sri Lanka’s Commercial Bank said net profit rose 12% to Rs4.8 billion in the December 2017 quarter from a year ago.
Interest income rose 21% to Rs27.6 billion while interest expenses rose 19% to Rs16.7 billion with net interest income up 26% to Rs10.9 billion, according to interim results filed with the stock exchange.
Quarterly diluted earnings per share were Rs5.05, up from Rs4.70 a year ago. Commercial Bank shares closed at Rs139 Friday.
Commercial Bank announced a scrip dividend after close of trading of one share for 77.78 voting shares and one for 58.9 non-voting shares.
In the year to 31 December 2017, diluted EPS was Rs17.27 with net profit up 14% to Rs16.6 billion.
December quarter net fee and commission income rose 13% to Rs2.6 billion while trading losses fell 67% to Rs117 million
The quarterly accounts showed impairment charges for bad loans of Rs607 million against a reversal of Rs237 million the previous year
Commercial Bank said in a statement that the 28% growth in annual interest income to Rs103 billion, up Rs22.3 billion, was “primarily due to a significant growth in the bank’s loan book over the 12 months.”
Commercial Bank chairman Dharma Dheerasinghe said the bank paid out about 41% of its profits as taxes in addition to over Rs2 billion it had collected from customers on behalf of the government in 2017.
Managing Director Jegan Durairatnam said a further improvement in asset quality with both gross and net non-performing loans ratios decreasing, boosted profitability.
Total assets of the bank grew by Rs131 billion or 12.96 % at a monthly average of Rs 11 billion to Rs 1.143 trillion as at 31st December 2017, the statement said.
Net loans and receivables increased by Rs 121.428 billion or 19.71% in 2017 to stand at Rs 737.4 billion at the end of the year, with an average increase of more than Rs 10 billion per month.
“This was the third successive time that Commercial Bank increased its loan book by more than Rs 100 billion in a year.”
The bank’s deposits portfolio grew 14.95% or Rs 110.6 billion to Rs 850 billion as at 31st December 2017, the second successive year in which deposits grew by more than Rs 100 billion.
Commercial Bank said it improved net interest income by 18.89% to Rs 39.023 billion, more than double the rate of growth achieved in 2016, despite interest expenses growing by 33.59% to Rs 64.011 billion due to rising interest rates and a continuing shift of low cost funds to fixed deposits in 2017.
Total impairment charges for loans and other losses were increased by 25.13% to Rs 1.914 billion mainly due to the collective impairment provisions required on the growth of the loan book in 2017.
(COLOMBO, February 23, 2018)