ComBank profits up; records impressive 21% credit growth

24 February 2015 06:24 am - 0 - {{hitsCtrl.values.hits}}

A A A

Commercial Bank PLC, Sri Lanka’s largest private bank with an asset base of Rs.797.2 billion, saw its December net profit (4Q14) edging up 2 percent year-on-year (YoY) to Rs.3.39 billion, the interim financial accounts released to the Colombo Stock Exchange showed.

The basic earnings per share for the quarter stood unchanged at Rs.3.92.

The net interest income for the quarter under review improved 13 percent YoY to Rs.7.32 billion, helped by lower interest expenses.

The banking group was able to grow its loan book an impressive 21 percent YoY during FY14 to Rs.498.1 billion, which also helped to gain higher interest income.

Commenting on these results, Commercial Bank Chairman Dharma Dheerasinghe said that in the face of challenges on both the domestic and international fronts, the efforts of the bank’s corporate and personal banking teams had resulted in its lending portfolio growing appreciably in the latter part of the year, registering a growth rate considerably higher than in the previous quarters.

“Against a background of sharply declining interest margins, this healthy expansion of volume acted as a boost that raised the bank’s overall profits– a welcome consequence no doubt appreciated by all shareholders,” he said. The banking group’s deposit base grew 17 percent YoY to Rs.529.2 billion in FY14.
The net fees and commission income during 4Q14 rose 23 percent YoY to Rs.1.35 billion. The banking group was able to reduce its trading losses during the quarter 68 percent YoY to Rs.277.5 million.

The net gains from financial investments fell 43 percent YoY to Rs.773 million. On August 31, 2014 Commercial Bank fully acquired Indra Finance (IFL) for a consideration of Rs.916 million. The notes to the financial statements said the finances of IFL have been consolidated in the bank’s comprehensive income and financial position.

The banking group’s FY14 net profit rose 6.4 percent YoY to Rs.11.2 billion amid the net interest income growing 5.5 percent YoY to Rs.27.3 billion.

The net fee and commission income rose 14 percent YoY to Rs.4.85 billion. The earnings per share improved to Rs.13.01 from Rs.12.24.

The bank was able to cut its impairment charges for loans and other losses by 5.38 percent YoY to Rs.4.9 billion in FY14 and 8.42 percent YoY to Rs.1.3 billion in 4Q14. The gross non-performing ratio thus improved to 3.47 percent from 3.88 percent.

The personal expenses during FY14 rose 8 percent YoY to Rs.8.95 billion.

The bank’s Tier I and Tier II capital adequacy ratios stood at 12.93 percent and 15.97 percent, respectively, well above the minimum requirement of 10 and 15 percent.

The bank’s provision for financial VAT and NBT for the year totalled Rs.2.68 billion, an increase of 36.57 percent over the preceding year.

“Income tax, financial VAT and NBT as a percentage of the bank’s profit before financial VAT was 39.32 percent,” a statement by the bank said.

The interim budget of the new government imposed a 25 percent one-off tax on companies that made profits in excess of Rs.2 billion for tax year 2013/14.
The bank announced a cash dividend of Rs.2 per share, both voting and non-voting shares.

The largest shareholder of Commercial Bank as at December 31, 2014 was DFCC Bank, which had a 14.79 percent stake, followed by state-controlled private sector pension fund, the Employees’ Provident Fund, with a 9.73 percent stake.

Franklin Templeton Investment Fund was the third largest shareholder with a 5.92 percent stake.

With a 5.84 percent stake, Indra Silva remained as the fourth largest investor.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

ComBank profits up; records impressive 21% credit growth

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Street food vendor arrested for verbally harassing foreigner

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

SL on alert on possible genocide allegations by Canada

New Visa procedure implemented

Former MP Palitha Thewarapperuma dies from electrocution

Sri Lankan among NASA’s new crew for next simulated Mars journey

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations