BOC posts Rs. 76bn PAT on strong revenue and asset quality

Kavinda de Zoysa - Chairman	Y. A. Jayathilaka - CEO

Bank of Ceylon (BOC) posted a Profit After Tax (PAT) of Rs. 76.0 billion for the year ended 31 December 2025, up 18 percent from Rs. 64.4 billion in 2024, while Profit Before Tax (PBT) reached Rs. 120.8 billion. 

The fourth quarter contributed strongly to this performance, underpinned by sustained revenue growth and disciplined cost management.

Total Operating Income for the year rose 36 percent to Rs. 246.8 billion, supported by a 24 percent increase in Net Interest Income (NII) to Rs. 206.9 billion. Interest income grew 8 percent to Rs. 496.2 billion, while interest expenses declined 2 percent to Rs. 289.2 billion, reflecting improved interest margins and funding efficiency. Non-interest revenue also strengthened, with net fee and commission income rising 12 percent to Rs. 23.1 billion, driven by higher digital transactions, card services, trade finance, and remittances.

Operating expenses increased 9 percent to Rs. 73.0 billion, reflecting strategic investments in technology, human capital, and service infrastructure, while operating profit before taxes on financial services grew 13 percent to Rs. 152.7 billion. Tax on financial services of Rs. 31.9 billion and income tax expenses of Rs. 44.8 billion brought the PAT to Rs. 76.0 billion.

BOC maintained strong asset quality, recording an impairment charge of Rs. 20.7 billion on loans and advances. The Stage 3 loan ratio improved to 5.59 percent from 7.17 percent in 2024, while Stage 3 provision coverage strengthened to 57.91 percent, highlighting disciplined credit monitoring and recovery efforts.

The bank’s balance sheet expanded, with total assets exceeding Rs. 5.5 trillion, gross loans of Rs. 2.6 trillion, and deposits of Rs. 4.4 trillion. Return on Assets (ROA) before tax improved to 2.31 percent, while Return on Equity (ROE) after tax was 22.74 percent. Net Interest Margin rose to 3.96 percent from 3.57 percent. Capital ratios remained robust, with a Common Equity Tier 1 ratio of 11.44 percent and Total Capital Ratio of 16.89 percent, and liquidity coverage ratios stayed comfortably above regulatory minimums.

During the year, BOC issued a Rs. 20 billion Basel III–compliant Tier II Sustainability Bond, the largest of its kind in Sri Lanka, to finance green and social projects including renewable energy, SMEs, healthcare, and education. The bank also accelerated its digital transformation through its ICT subsidiary, expanded agent banking, and introduced Sri Lanka’s first biodegradable banking card.

BOC reinforced its corporate citizenship, contributing Rs. 500 million to the government’s “Rebuilding Sri Lanka” Fund for communities affected by Cyclone Ditwah, alongside Rs. 50 million in staff-led emergency relief.

The bank retains a strong domestic presence with over 2,300 customer touch points and extends internationally with branches in India, Maldives, Seychelles, and the UK. Fitch Ratings affirmed the bank’s National Long-Term Rating at ‘AA-(lka)’ and its foreign and local currency issuer default ratings at ‘CCC+’.

Looking ahead to 2026, BOC said it plans to focus on digital transformation, strategic lending, and sustainable growth while maintaining capital strength and disciplined risk management.