Sri Lanka’s Bank of Ceylon in losses in the June 2020 quarter
ECONOMYNEXT – Sri Lanka’s state-run Bank of Ceylon, the largest commercial bank in the country has reported a loss 296 million rupees for the June 2020 quarter, from a profit of 2.8 billion rupees last year as the lender recognized interest losses on a Coronavirus moratorium early.
Net interest income fell to 14.0 billion rupees in the June 2020 quarter from 20.7 billion rupees a year earlier, with interest income falling 7 percent to 57.5 billion rupees while interest income grew 7.2 percent to 39.4 billion rupees.
The net interest income fell “mainly due to accounting for the day one loss on COVID -19 moratorium and increase in interest expense in line with growth of the deposit base,” the bank said.
Loans and advances grew 13.1 percent to 1,788 billion rupees in the six months to June.
“The Bank’s loan book stood at Rs. 1.8 trillion and both Government and private sector lending have contributed to this growth,” the bank said.
The bank is a key financier of the state and state enterprises.
Loans and advances grew 13.1 percent to loans and advances.
The bank provided 7.6 billion rupees for non performing loans in the quarter, up from 6.7 billion rupees from year earlier.
The Non-performing loan ratio increased to 5.35 percent by end June 2020, up from 4.79 percent in December.
Fee and commission income fell 43 percent 1.9 billion rupees.
The bank had brought operating expenses down 9.5 percent to 8.08 billion rupees.
Bank of Ceylon gross assets grew 10.5 percent to 2,721 million dollars. Net assets grew 2.6 percent to 159 billion rupees.
Tier 1 capital adequacy ratio fell to 10.61 percent in June from 11.16 percent, which is higher than the required 9 percent.
Total capital ratio fell to 14.7 percent from 15.58 percent, which is higher than the required 13 percent. (Colombo/Aug16/2020)