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Sri Lanka’s Commercial Bank June 2020 quarter net up 4.5-pct

ECONOMYNEXT – Profits at Sri Lanka’s Commercial Bank of Ceylon grew 4.5 percent from a year earlier to 3.6 billon rupees in the June 2020 quarter, partly helped by capital gains on bonds and foreign exchange profits, interim accounts show.

The group reported earnings of 3.43 rupees per share for the quarter.

Commercial Bank’s net interest income fell 16.9 percent to 9.9 billion rupees as an interest loss on a Coronavirus moratorium was recognized early. Interest income fell 11 percent to 29.03 billion rupees and interest expenses fell at a slower 7.5 percent to 19.05 billion rupees.

Loans grew 0.29 percent to 887 billion rupees from December to June 2020.

Deposits grew at a faster rate of 8.06 percent to 1,138 billion rupees.

Impairment charges were down to 2.6 billion rupees from 3.6 billion rupees.

The gross non-performing loan ratio grew to 5.37 percent from 4.95 percent at bank level.

Fee income fell 31 percent to 1.6 billion rupees.

The reported net gains on trading of 2.2 billion rupees, up from 362 million rupees last year helped by derivative deals.

Bond holdings rose to 187 billion rupees from 101 billion rupees.

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The bank reported 1.7 billion rupees up from 247 billion rupees last year mainly on bond gains.

Tier I capital adequacy grew to 13.02 percent by June 2020 from 12.29 percent in December higher than the 7.5 percent required and total capital grew to 16.8 percent from 16.4 percent. (Colombo/Aug18/2020)