BOC reports strong 3Q 2025 profit of Rs.87.7bn

Kavinda de Zoysa	Y.A. Jayathilaka

Bank of Ceylon (BOC) continued to demonstrate its strength and stability in 3Q 2025, reaffirming its role as a cornerstone of Sri Lanka’s financial landscape. 

With a profit before tax (PBT) of Rs.87.7 billion recorded for the first nine months of the year, the bank showcased consistent growth, driven by disciplined financial management, strategic business expansion and a strong commitment to supporting national economic progress. This performance reinforces BOC’s reputation as a trusted institution, one that not only adapts to changing economic conditions but also leads with confidence, resilience and purpose. BOC Chairman Kavinda de Zoysa stated, “As we close the third quarter of 2025, BOC continues to reaffirm its purpose of building a financially inclusive and economically empowered Sri Lanka. Our strong financial performance of this quarter reflects the success of our strategy to balance profitability with purpose, ensuring that growth benefits every segment of our society. 

We remain deeply committed to expanding access to finance, empowering youth and fostering entrepreneurship through innovative and digitally driven solutions. 

By providing affordable financial services and supporting young innovators and small businesses, we are not only strengthening individual livelihoods but also fuelling the nation’s long-term economic resilience. BOC stands firm in its mission to drive inclusive prosperity, sustain strong financial growth and inspire a future where every Sri Lankan can thrive.”

Strong financial performance and enhanced operational efficiency.  During the first nine months of 2025, BOC continued to deliver strong and sustainable financial performance, reflecting both strategic focus and disciplined execution. The bank recorded a PBT of Rs.87.7 billion, a remarkable 133 percent increase compared to Rs.37.6 billion in the corresponding period of 2024. 

This robust performance was driven by a 62 percent growth in net interest income to Rs.153.2 billion, highlighting the bank’s ability to strengthen the core banking income while maintaining operational efficiency and financial resilience. BOC effectively navigated the evolving interest rate environment, recording a 15 percent increase in interest income to Rs.368.1 billion, alongside a 5 percent reduction in interest expenses to Rs.214.9 billion. The resulting improvement in net interest margin demonstrates strong balance sheet management and strategic repricing strategies. Non-fund-based income also played a vital role in boosting overall earnings. Net fee and commission income increased by 11 percent to Rs.16.8 billion, driven by the growing customer engagement in digital channels, card usage, retail transactions and remittance flows.  Total operating income rose 61 percent to Rs.181.1 billion, while the operating expenses increased by only 6 percent to Rs.51.8 billion, reflecting effective cost management. This resulted in a notable improvement in operational efficiency, with the bank achieving a cost-to-income ratio of 32 percent.

The operating profit before taxes on financial services rose to Rs.111.1 billion and after accounting for Rs.23.4 billion in taxes on financial services and Rs.31.9 billion in income tax expense, the bank reported a solid profit after tax of Rs.55.7 billion. During the period, BOC also contributed Rs.55.3 billion in direct and indirect taxes, reaffirming its pivotal role in supporting national fiscal stability.  Acting General Manager/Chief Executive Officer Y.A. Jayathilaka commented, “Our strong performance in the third quarter of 2025 is a testament to the confidence our customers continue to place in us and the dedication of our staff across the bank. Beyond financial performance, this achievement highlights our commitment to delivering meaningful economic value and strengthening the communities we serve. Each step forward reflects our focus on responsible growth, technological advancement and service excellence. 

As we move ahead, BOC will continue to channel its financial strength into initiatives that inspire opportunity, enable sustainable development and support the progress of every Sri Lankan. Together, we are building a future defined by resilience, shared prosperity and long-lasting impact.”

Impairment charge for loans and advances and other financial instruments 

In 3Q 2025, BOC continued to demonstrate prudent and proactive credit risk management, ensuring the strength and stability of its loan portfolio. During the period, the bank recognised an impairment charge of Rs.18.7 billion on loans and advances, reflecting its prudent approach to addressing expected credit losses.

The stage three loan ratio stood at 6.69 percent, with further improvements anticipated as ongoing recovery initiatives and strengthened collection efforts continue to yield positive outcomes. The stage three provision coverage ratio remained strong at 56.24 percent, underscoring BOC’s commitment to conservative provisioning and sound risk practices, reinforcing confidence in the bank’s financial resilience.

Financial position 

As of September 30, 2025, BOC’s total assets stood at Rs.5.5 trillion, reflecting a solid upsurge of 11 percent YTD. This growth was largely fuelled by investments in government securities and securities under resale agreements, highlighting the bank’s disciplined approach to liquidity management and its ability to leverage favourable market conditions.

Gross loans and advances increased to Rs.2.5 trillion, signalling growing credit demand during the period. Conversely, the bank’s deposit base expanded by 9 percent to Rs.4.6 trillion, demonstrating strong customer confidence and the success of the bank’s strategic initiatives in deposit mobilisation.

Key performance indicators

BOC delivered robust key performance indicators (KPIs) in 3Q 2025, reflecting sustained profitability and operational efficiency. The bank reported a return on assets of 2.22 percent and a return on equity of 22.82 percent, highlighting consistent value creation for shareholders. 

BOC maintained a robust capital position, with a common equity Tier 1 ratio of 12.99 percent and a total capital ratio of 16.76 percent, comfortably above Basel III requirements. Liquidity remained strong, with local currency coverage at 276.00 percent and all-currency coverage at 254.10 percent, reaffirming the bank’s solid liquidity and financial resilience.

Digital innovation and sustainable banking 

In 3Q 2025, BOC continued to drive its digital transformation agenda, focusing on innovation, customer convenience and sustainability. In partnership with Mastercard, BOC launched the BizPlus Credit Card, specifically designed for micro, small and medium enterprises. This product supports financial inclusion and economic empowerment, helping business owners manage operational expenses efficiently.

The bank further enhanced digital accessibility through platforms such as BOC Flex and the BOC Smart Remit mobile app, streamlining remittances for Sri Lankans abroad with faster, secure and user-friendly transactions. 

With 100 branches generating clean energy at 4 MW solar capacity, the bank sets benchmarks in sustainable operations and responsible banking practices. BOC has joined the Partnership for Carbon Accounting Financials, reinforcing its commitment to sustainability by enhancing greenhouse gas accounting and reporting. 

These initiatives strengthen customer experience while reinforcing BOC’s leadership in digital banking, sustainable finance and migrant remittances, cementing its role as a trusted financial partner driving economic growth and inclusive prosperity across Sri Lanka.

Economic prosperity and financial inclusion

BOC continues to advance economic prosperity and financial inclusion across Sri Lanka. Key initiatives include the launch of BOC Connect Analathivu and the opening of 50 new Agent Banking Centres, expanding access to banking services in underserved areas.

Under the BOC Gammana programme, the ninth BOC Gammana Centre was established in Naagala, Bibila, Uva province, aiming to elevate living standards and enrich local communities. This initiative demonstrates the bank’s active commitment to financial inclusion by providing essential banking services, financial literacy and economic opportunities to rural populations.

Through these efforts, BOC is not only empowering communities and enabling greater participation in the economy but also laying a strong foundation for sustained economic growth and prosperity that benefits the nation as a whole.

Outlook 

Looking ahead, BOC is focused on accelerating sustainable growth while enhancing its digital capabilities to meet evolving customer needs. The bank plans to expand its SME and retail lending portfolio in line with improving economic conditions, ensuring a balance between growth and prudent risk management.

BOC will continue to strengthen customer engagement through innovative digital solutions, enhanced mobile and online banking services and tailor-made financial products. Sustainability remains a key focus, with ongoing initiatives promoting eco-friendly banking practices and community development.

With a strong capital position, healthy liquidity and operational resilience, BOC is well-positioned to seize emerging opportunities, optimise efficiency and deliver long-term value to both shareholders and customers throughout the remainder of the year.

Recognition

BOC continues to earn distinguished recognition both locally and internationally. In 2025, the bank was ranked as the top Sri Lankan Bank among the Top 1000 World Banks by ‘The Banker’ Magazine (UK). On the domestic front, BOC was named the No. 1 Brand and Sri Lanka’s Most Valued Brand by Brand Finance Lanka in 2025, with a brand value of Rs.57.4 billion. Additionally, the bank was awarded People’s Banking Services Brand of the Year at the SLIM KANTAR People’s Awards 2025, further reflecting its strong customer trust and market leadership.

In recognition of its operational excellence, BOC also received the BOC Flex Gold Award for the Best Managed Project in the Financial Services Sector at the National Project Management Excellence (NPME) Awards 2025, highlighting the bank’s commitment to innovation and project management excellence.

BOC maintains a robust domestic presence with a widespread network of over 2,300 direct customer touchpoints including fully-equipped and mobile branches, SME centres, ATMs, CDMs and CRMs and the bank ensures comprehensive financial accessibility across all provinces of the country, reinforcing its commitment to financial inclusion. Internationally, the bank extends its presence through branches in India, Maldives, and Seychelles, a limited-services branch in Hulhumale and a fully-owned subsidiary in London, United Kingdom, further strengthening its global footprint.

Fitch Ratings has affirmed the National Long-Term Rating at ‘AA-(lka)’ and the Long Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’ for BOC.