ComBank 4Q profit dips 47% as ISB provision reversals skew base

Sharhan Muhseen – Chairman	Sanath Manatunge - MD/CEO

• Becomes first private bank to cross Rs. 2 trn in loans

Commercial Bank of Ceylon PLC reported performance which mostly mirrored the rest of the industry for the December quarter where the previous year’s provision reversals on International Sovereign Bonds (ISBs) overshadowed the better underlying performance.

The bank reported earnings of Rs. 7.82 a share or Rs. 12.76 billion for the October–December period, down 46.8 percent from the same period in 2024.

The profits were weighed down by the provision reversals in the December 2024 quarter, instead it was a provision of Rs. 9.06 billion.

In the corresponding quarter in 2024, the bank had provision reversals of Rs. 24.88 billion, largely coming from the ISBs as a result of them being restructured.

The so-called day-1 loss resulting from the derecognition of old bonds was Rs. 44.68 billion.

The bank gave new loans worth Rs. 354.80 billion in 2025, a growth of 24 percent, of which Rs. 170.6 billion were given in the final three months. In a commentary that followed the release of the financial results, ComBank said it is the first private sector bank in the country to expand its loan book beyond Rs. 2 trillion.

The deposits rose by Rs. 372.29 billion at a growth of 16.6 percent.

Commercial Bank made a quite an exceptional quarter with its net interest margin expanding to 4.52 percent from 4.27 percent at the start of the year.

In all other banks which reported results, their interest margin narrowed.

The bank also lowered its Stage 3 loans ratio to 1.54 percent from 2.76 percent at the start of the year in a reflection of the asset quality.

This also happens when the loans grew at a rapid pace. In any case, the lower provisions remain relatively better.

Under these circumstances, the bank reported a net interest income of Rs. 74.38 billion, up 28.54 percent.

The fee income rose by 24.26 percent to Rs. 28.25 billion mainly from the increased income from credit and debit cards and remittances and deposits related services, the bank said.

The bank also reported a net other operating income of Rs. 14.55 billion.

For the full year, the bank reported earnings of Rs. 55.84 a share or Rs. 60.11 billion, up 9.15 percent from the same period in 2024.