ECONOMYNEXT – Sri Lanka’s Commercial Bank of Ceylon, the largest private bank by assets said profits grew 52 percent to 5.5 billion rupees in the June 2021 quarter from a year earlier, with net interest income and fees growing.
The group reported earnings of 4.61 rupees per share for the quarter. For the six months to June the group reported earnings of 10.2 rupees on toal profits of 12.5 billion rupees, which grew 66 percent.
Net fee and commission income grew 63 percent to 2.6 billion rupees.
Net interest income grew 57 percent to 15.6 billion rupees, with interest income up 9 percent to 31.02 billion rupees and interest expense falling 16 percent to 15.9 billion rupees.
Sri Lanka’s interest rates have fallen sharply despite a double digit budget deficit, with a severe run down of foreign reserves triggered by money printing.
Group customer loans grew 6.8 percent to 971 billion rupees from December to June.
The bank provided 6.4 billion rupees for bad loans in the quarter up from 2.6 billion a year earlier.
Short term debt investments grew 24 percent to 335 billion rupees and long term investments grew 20 percent to 278 billion rupees.
Group gross assets grew 9.7 percent to 1.93 trillion rupees from December to June.
Net assets grew 5.5 percent to 169 billion rupees.
At bank level Tier 1 Capital Adequacy Ratio was 13.519 percent by June the Total Capital Ratio was 16.880 above regulatory minimum of 9 percent and 12 percent. (Colombo/Aug12/2021)