The Commercial Bank of Ceylon Group, comprising the bank, its subsidiaries and an associate, has reported total operating income of Rs 55.818 billion for the nine months ending September 30, 2020, achieving a growth of 11.84%.
Financial statements filed with the Colombo Stock Exchange (CSE) show that the capital gains on Treasury investments generated a net gain of Rs 4.658 billion on derecognition of financial assets; that mark to market gains on Treasury Bills and Bonds enabled a conversion of a net loss of Rs 294.249 million on trading to a net gain of Rs. 749.059 million for the nine months, and that exchange profit grew by 25.2% to Rs 6.586 billion from FX swap trading and other foreign exchange trading activities and translation gains on the Bank’s US Dollar reserves due to an approximately 2% depreciation of the Rupee against the Dollar.
With interest rates coming down, the Group was able to reduce interest expenses by 7.70%.
Profit before income tax recorded a decline of 2.10% over the corresponding period to total Rs 16.394 billion. The Group’s income tax charge at Rs. 5.219 billion, was marginally down by 0.15% while net profit at Rs. 11.175 billion, a reduction of 2.98%.
Taken separately, the Commercial Bank of Ceylon PLC reported a profit before tax of Rs 15.566 billion for the nine months, a decline of 4.43% and profit after tax of Rs. 10.595 billion, a reduction of 5.60%.
Total assets of the Group grew by Rs 254.143 billion or 18.04% since 31st December 2019 to Rs 1.663 trillion as at September 30, 2020. Asset growth over the preceding 12 months was Rs 292.730 billion or 21.36% YoY.
Gross loans and advances of the Group grew by Rs 18.935 billion or 2.03%. Total deposits of the Group recorded a growth of Rs 152.774 billion. The Bank’s gross NPL ratio increased to 5.20% from 4.95% at end 2019 while its net NPL ratio increased marginally to 3.04% from 3.00%.