Combank’s 9-month net up 25% to Rs.7.6bn

8 November 2012 02:54 am - 0 - {{hitsCtrl.values.hits}}

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Sri Lanka’s Commercial Bank PLC’s consolidated net profit for the nine months ended September 30, 2012 rose 25 percent year-on-year to Rs.7.6 billion, while net profit for the September quarter (3Q12) stood at Rs.2.3 billion, up 11.55 percent YoY, the interim financial accounts showed.

The group reported pre-tax profit of Rs.10.9 billion for the nine months ending September 30, 2012, reflecting growth of 25.99%.

Reaffirming its status as one of the best performing entities in Sri Lanka’s financial sector, the bank posted gross income of Rs.45.610 billion for the nine months, an increase of Rs.12.7 billion or 38.61% over the corresponding period of last year.

Within this, interest income grew by 35% to Rs.37.216 billion, consequent to substantial expansion of the bank’s loans portfolio, while non-interest income improved by 70.57% to Rs.7.677 billion, facilitated by foreign exchange income of Rs.4.097 billion, which represented a growth of 180.59%.

“Our results continue to be encouraging on all fronts, even in a changing environment.

Building on our momentum with a focus on core banking, the bank posted a solid monthly average growth in both loans and deposits amounting to Rs.4.5 billion and Rs.5.9 billion respectively during the period under review,” said Chairman Dinesh Weerakkody. “Such exemplary performance reinforces the key role played by Commercial Bank in the national economy.”

The bank’s Managing Director and CEO Ravi Dias added, “This nine-month performance was achieved despite a significant increase in the cost of interest-bearing liabilities due to the prevailing high market interest rates.”

The bank’s net interest income for the nine months improved by 19.33% to Rs.16.013 billion, while interest expenses grew by 50.06% to Rs.21.202 billion, in response to the comparatively higher interest rates that prevailed.

Within non-interest income, an increase in the volume of foreign currency operations of the bank and the translation gains recognised consequent to the depreciation of the Sri Lanka rupee against the US dollar during the nine months, combined to boost foreign exchange income.

In addition, the other income of the bank, which mainly comprises of commission income and investment income, recorded an increase of 17.75% and reached Rs.3.580 billion.

Commercial Bank’s gross loans and advances stood at Rs.329.071 billion as at September 30, 2012, an increase of Rs.41.108 billion or 14.28% from December 31, 2011.

Total deposits grew by Rs.53.442 billion or 16.78% over the same period to Rs.371.904 billion. Total assets increased by 12.97% from Rs.441.099 billion at December 31, 2011 to Rs.498.299 billion at the end of the review period.

Net provisions for bad and doubtful debts increased to Rs.1.250 billion as against a net reversal of Rs.480.7 million for the first nine months of 2011, principally as a result of a more stringent provision policy adopted by the bank.

Non-interest expenses increased by 17.89% to Rs.10.005 billion, largely on account of increased personnel costs and premises, equipment and establishment expenses linked to the expansion of the bank’s delivery channels in Sri Lanka. The bank opened 11 new service points and added 38 new terminals to its ATM network during the nine months reviewed.

The bank’s total capital adequacy ratio stood at 13.51% as at September 30, 2012, as against the prescribed minimum of 10%. The gross and net non-performing advances ratios increased to 3.72% and 2.18% respectively at the end of the third quarter. Return on assets before tax and return of equity improved to 3.1% and 21.41%, respectively.

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Combank’s 9-month net up 25% to Rs.7.6bn

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