Sri Lanka’s Commercial Bank profits flat amid higher provisions
ECONOMYNEXT – Profits at Sri Lanka’s Commercial Bank of Ceylon was flat at 5.8 billion rupees in the December 2020 quarter as increases in net interest income and forex gains were moderated as the banks made stronger loss provisions.
Commercial Bank reported earnings of 5.44 rupees per share for the quarter. In the year to December the group reported earnings of 15.70 rupees per share.
Fee and commission income fell 4 percent to 3.5 billion rupees.
Net interest income grew 17.9 percent to 14.07 billion rupees in the December quarter with interest income falling 2.7 percent to 31.05 billion rupees and interest expenses falling 15 percent to 16.9 billion rupees.
Commercial Bank made provisions of 4.8 billion rupees in the quarter up from 2.7 billion rupees.
The gross non-performing loan ratio rose to 5.11 percent by December from 4.95 percent a year earlier at bank level.
Gains from trading fell 31 percent to 1.2 billion rupees while gains from de-recognition of financial assets rose to 1.7 billion rupees from 690 million dollars.
The bank said it made gains on forex depreciation.
Customer deposits grew 20 percent to 1.2 billion rupees during the year.
Debt instruments grew 182 percent to 302 billion rupees as the bank bought bonds.
Loans and advances grew 1.7 percent to 909 billion rupees during the year.
Gross assets grew 25 percent to 1.76 billion rupees.
Net assets grew 19 percent to 160 billion rupees. Tier I capital adequacy grew to 13.2 percent by December 2020 from 12.29 percent. Total capital adequacy grew to 16.8 percent from 16.1 percent. (Colombo/Feb25/2021)