ECONOMYNEXT – Profits at Sri Lanka’s Commercial Bank of Ceylon grew 247 percent to 24.01 billion rupees in the December 2024 quarter, helped by write-backs from sovereign bond restructure and net interest income growth.
Commercial Bank reported earnings 16.75 rupees per share for the quarter. In the year to December earnings were 38.44 rupees per share, on total profits of 55 billion rupees, up 160 percent from a year earlier.
Commercial Bank of Ceylon interest income for the December quarter fell 6.81 percent to 68.09 billion rupees, interest expenses fell 18.09 percent to 38.9 billion rupees and net interest income grew 14.19 percent to 29.1 billion rupees.
Loans grew 17.7 percent to 1,384 billion rupees during 2024.
Commercial Bank said it grew the loan book by 108.6 billion rupees in the December 2024 which was an average of 36 billion rupees.
Deposits grew 7.36 percent to 2,306 billion rupees.
Deposit grew by 79.56 billion alone at a monthly average of 26.5 billion rupees.
Banks generally slowdown on government securities purchases as private credit recovers and may also terminate interbank lending deals.
Analysts had warned that as private credit recovered, the central bank tends to print money injecting rupee reserves into banks to operate a single or mid-corridor policy rate under ‘data driven monetary policy’, eventually driving the country into a currency crisis.
Meanwhile the Commerical Bank said it had reversed loss provisions of 62 billion rupees on sovereign bonds on restructure, and booked a one-day loss of 45.1 billion rupees on the new bonds.
Total reversals of impairments in the quarter were 82 billion rupees.
Net fee income grew 7.48 percent to 6.6 billion rupees.
Personnel expenses were up 33 percent to 8.0 billion rupees.
Equity grew 27 percent to 285 billion rupees also helped by a rights issue.
Commercial Bank’s Tier I capital ratio improved to 14.2 percent, from 11.4 percent. Total capital adequacy increased to 18.1 percent to 15.1 billion rupees.
Gross assets grew 8.3 percent to 2,875 billion rupees. (Colombo/Mar03/2025)