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Showing posts with label Commercial bank. Show all posts
Showing posts with label Commercial bank. Show all posts

Commercial Bank’s 9-month pre-tax profit tops Rs 12 billion

Deposits grow by Rs 6.6 bn. a month to Rs 588.9 bn. Loan book up 19% to Rs 481.9bn.

The Commercial Bank of Ceylon PLC has reported Profit Before Tax of Rs 12.190 billion for the nine months ending 30th September 2015, achieving a creditable 8.72% growth despite narrowing margins and substantially lower capital gains in comparison with the same period of the preceding year.

The Bank’s Profit After Tax of Rs 8.426 billion at the end the third quarter reflected growth of 7.96%, while Gross Income at Rs 56.694 billion was an improvement of 4.58%, according to interim financial statements filed with the Colombo Stock Exchange by Sri Lanka’s largest private bank. Profit Before VAT and NBT was up 8.51% to Rs 14.235 billion.

Interest Income for the nine months improved by 4.53% to Rs 48.605 billion, while Interest Expenses grew by a lower rate of 1.08% to Rs 26.207 billion, helped by the growth of low cost funds in the Bank’s deposit mix in the review period. Consequently, Net Interest Income grew by a higher rate of 8.88% to Rs 22.398 billion.

Other Income at Rs 7.432 billion was on par with that of the corresponding nine months of the previous year, during which the bank posted substantial capital gains on bond trading. The figure for 2015 was helped by an increase of Rs 554.6 million in net gains from trading, an increase of Rs 652.8 million in Recoveries, Exchange Profit and Investment Income, and an improvement of Rs 316.434 million in Net Commissions and Fees, the Bank said.

Commenting on the Bank’s performance up to the third quarter, Commercial Bank Chairman Mr Dharma Dheerasinghe said: “The figures are a good indication of how the Bank has kept its momentum going throughout the review period in the face of changing conditions and reduced margins. We have also had robust deposit and loan growth in the review period and hope to end the year with a characteristically solid result.”

Commercial Bank Managing Director/CEO Mr Jegan Durairatnam noted that the impact of factors such as the absence of bond trading income and less favourable interest rates in 2015 had been effectively mitigated by the Bank’s strong attention to improving volumes in core business areas. “A focus on getting the fundamentals right has always been one of the strengths of Commercial Bank, and helps us navigate challenging conditions,” he said.

Loans and Receivables to other customers grew by a healthy 18.87% over the nine months to Rs 481.923 billion as at 30th September 2015, an increase of Rs 76.491 billion since end 2014, and a growth of Rs 94.474 billion or 24.38% YoY.

Deposits from customers totalled Rs 588.917 billion at the end of the nine months reviewed, up Rs 59.556 billion at an average of Rs 6.6 billion per month since 31st December 2014. Year-on-Year growth of the Bank’s deposit base was Rs 84.756 billion or 16.81%.

Total assets grew by 9.72% since end 2014 to Rs 872.923 billion as at 30th September 2015, an increase of Rs 77.314 billion over nine months, and a YoY improvement of Rs 125.634 billion or 16.81%.

Loan growth and good management of non-performing loans enabled the Bank to reduce its Gross and Net NPL ratios to 3.01% and 1.52% respectively, from 3.84% and 2.1% a year ago.

The Bank’s Interest Margin declined from 3.91% at end September 2014 and 3.88% at end 2014 to 3.59% at the end of the review period.

At Group level, Commercial Bank, its subsidiaries and associates reported Profit Before Tax of Rs 12.225 billion for the nine months, an improvement of 8.28%, and Profit After Tax of Rs 8.435 billion, an increase of 7.43%.

The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for five consecutive years, Commercial Bank operates a network of 246 branches and 618 ATMs in Sri Lanka. The Bank was ranked the most valuable private sector brand in Sri Lanka in 2014 and has also won multiple awards as Sri Lanka’s best bank from several international publications over several years. The Bank was adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014.

Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 18 branches and Myanmar, where it has a Representative Office in Yangon. In September 2015, the Bank received regulatory approval for the establishment of a fully-fledged Tier I Bank in the Maldives with a local partner.

Last Three Months Results

Commercial Bank group profit decreased 2.4 percent to 3.2 billion rupees for the three months ended September 30 compared with the same quarter last year, the bank’s interim results showed.

The group reported earnings of 3.71 rupees per share for the quarter.

Gross income increased 6.63 percent to 20.3 billion rupees for the quarter and the net interest income increased by 11.09 percent to 7.7 billion rupees.

The group reported 7.01 percent increase in net fees and commission income to 1.3 billion rupees.

Loan loss provisions (impairment charges) rose 49.9 percent to 1.09 billion rupees for the September quarter, the accounts showed.

Trading gains rose 209 percent to 926 million rupees, while gains from financial investments fell 88 percent to 158 million rupees for the quarter. Other income also fell 50.2 percent to 804 million rupees.

The group loans growth was 19.01 percent to 483 billion rupees during the nine months. The group’s deposits grew 11.25 percent to 589 billion rupees by the end of September 2015 against 529.2 billion rupees reported by the end of December 2014.

Total assets were up 9.81 percent to 875 billion rupees by the end of September 2015.
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Commercial Bank 1st half performance

Sri Lanka's Commercial Bank of Ceylon said profits before tax drop marginally to 6.474 billion in the first half of 2014 due to imposition of Nation building tax from January.

The bank says the profit before financial VAT and NBT was up 1.92 percent to 7.587 billion rupees.
The imposition of Nation Building Tax (NBT) from 1st of January 2014 resulted in the Bank’s NBT for the six months amounting to 159 million rupees. Financial VAT and NBT together totalled 1.113 billion rupees for the first half 2014, an increase of 18.88 percent.

“These factors contributed to the marginal drop in the profit before tax of Rs 6.474 billion for the period under review,” The bank said in a media release.

The bank recorded 4,479 billion rupees of profit after tax.

In the first half of 2014, net interest income rose 10 percent to 13.133 billion rupees, interest expenses fell in absolute terms by 5.13 percent to 17.301 billion rupee compared to the corresponding period last year.

Loans and receivables up 4.46 percent to 438 billion rupees by end June from December 2013.
The total operating income of the bank rose 9.39 percent to 17,698 billion rupees in the six months of 2014.

The bank’s total assets reached 683.579 billion rupees up from 22.48 percent over corresponding period of 2013 and shows 12.69 percent increase from December 2013.

Commercial Bank’s CEO Jegan Durairatnam was quoted saying that the bank had adopted a more robust mechanism in provisioning for individual impairment aimed at improving the provision cover.

Total deposits grew by 8.21 percent over the six months at an average of more than 6.4 billion rupees a month, to 503.563 billion rupees as at June 30, 2014. Deposit growth over the corresponding period of last year was 74 billion rupees.
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Commercial Bank Officer Investment Banking

The Commercial Bank of Ceylon is expanding its focus on investment banking, with the re-launch and renaming of its Corporate Finance Unit as ‘Commercial Bank Investment Banking’ to reflect the broader dimensions of the unit.

The ‘Commercial Bank Investment Banking’ unit will leverage the status of Commercial Bank as the largest private bank in the country, to offer potential issuers of listed securities in equity and debt forms, a comprehensive geographical reach for distribution of informational and documentary material such as prospectuses and application forms to a large proportion of the potential investing public, Commercial Bank’s Assistant General Manager Corporate & Investment Banking Naveen Sooriyarachchi said in a media release.

“The extensive and broad customer relationships forged by the bank over its long history facilitate successful marketing of equity and debt issues.

These strengths enable Commercial Bank Investment Banking to synthesise investment and commercial banking activities of the bank and function as managers and bankers to the Issue of securities offerings,” he said.

One of the biggest strengths of the re-named unit, Mr. Sooriyarachchi explained, is the fact that it is supported by the immense investment capability of the Commercial Bank. “Besides structuring debt issues for our clients, we have the financial strength to invest substantially in such instruments, as is proven by our investments in debentures in the concluded financial year,” he pointed out.

Commercial Bank Investment Banking has a dedicated team of experienced officers, and is seeking to create some new innovations in the market in order to carve out a distinctive niche for itself, he disclosed. “As a start, we have transitioned from the Corporate Finance Unit to Commercial Bank Investment Banking, the name change reflecting and indicating the greater scope of what we are trying to achieve,” Mr. Sooriyarachchi added.

The unit is geared to offer a wide spectrum of fund-based and fee-based services, including financial instrument structures such as Securitisations, Project Loans, Syndicated Term Loans and Margin Trading, along with securities such as Custodian Services and Escrow Services, and structuring and management of equity and debt issues.
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Commercial Bank 1st half year performane

The Commercial Bank of Ceylon PLC, one of the biggest privately owned banks in the country, has reported that the banking industry had continued to experience narrow margins and recorded comparatively lower growth in business volumes during the second quarter of the current year.

This was reflected in its half-year bottom line which was down from a year earlier despite marginal net interest growth and 8.6% deposit growth.

"Despite the challenging environment that prevailed in the industry, the bank was able to record a healthy net interest income of Rs.11.932 billion for the first half of 2013, compared to Rs.11.231 billion recorded in the corresponding period last year," the bank said in a statement included with its second quarter financials.


Total Deposits grow - 8.64%
"During the period under review the total deposits of the bank continued to grow and stood at Rs.429.537 billion as at June 30, 2013 reflecting a growth of Rs.34.162 billion or 8.64% compared to Rs.395.375 billion recorded as at December 31, 2012.

The loans and Advance to increase - 4.46%
"The loans and advances too recorded an increase of Rs.16.576 billion or 4.46% during the review period and reached a figure of Rs.390.119 billion as at the end of June 2013, compared to Rs.373.544 billion recorded as at December 31, 2012."

Pre-Tax Profit Down 12.89%
The Commercial Bank group had recorded a pre-tax profit of Rs.6.55 billion in the first half of this year, down from Rs.7.52 billion earned a year earlier.

Post-Tax Profit 12.98%
The group’s after-tax profit of Rs.4.49 billion compared to Rs.5.16 billion recorded in the first half of 2012.

The DFCC Bank remains the single largest shareholder of ComBank with 14.85% followed by EPF with 9.56% and the Franklin Templeton Investment Fund with 7.21%. The Life and General Funds of the Sri Lanka Insurance Corporation has a stake over 10%.

The directors of the Bank are: Messrs. D.S. Weerakkody (Chairman), K.G.D.D. Dheerasinghe (Deputy Chairman), W.M.R.S. Dias (MD/CEO), Prof. U.P. Liyanage, L. Hulugalle, M.P. Jayawardena, S. Swarnajothi and J. Durairatnam.

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Commercial Bank eye on Myanmar and Nepal

The Commercial Bank aiming to expand its horizon has applied for a banking licence in Myanmar and is eyeing a stake in a bank in Nepal, officials sad.

“We applied for this a couple of months ago and the approval process is on. We should get the licence by year end,” an official told the Business Times. He said that the bank officials visited Nepal about two months ago in order to evaluate a suitable stake in a Nepalese bank. He also said that Indonesia is on their radar for the future.

Commercial Bank which has a presence in Bangladesh with 17 delivery points and nine branches has around 4 per cent in the corporate banking market share there.

“The bank is attracting a lot of attention from the growing middle class population in Bangladesh and its personal banking products such as credit cards are becoming increasingly popular,” the official said.

Some years ago the bank decided to venture into India, following the success of its Bangladesh business, but abandoned this process when they realised that the costs were high and approvals were tough.

Sampath and National Development Bank (NDB) are amongst other local banks to enter Bangladesh.
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Commercial bank surpass Rs.10 billion


First Sri lanka Private Bank surpass 10 billion
Commercial Bank of Ceylon PLC has established yet another performance milestone, becoming the first private bank in Sri Lanka to surpass Rs. 10 billion in net profit, following a solid all-round 2012 performance that the bank dedicates primarily to its customers.


Profit before tax for the 12 months ending 31 December 2012 grew 30.26% to Rs. 14.311 billion, while profit after tax at Rs. 10.072 billion reflected a growth of 25.15%, Sri Lanka’s largest private bank said in a filing with the Colombo Stock Exchange.

Details
Change in Percentage
Change in Billion
Profit before tax
30.26%
14.311 billion
profit after tax
25.15%
10.072 billion

Commercial Bank Chairman Dinesh Weerakkody said the bank’s financial results reflect the significant role it now plays in the lives of millions of people and the national economy, as well as its commitment to the concept of ‘Banking on You’.

Commenting on the bank’s 2012 performance, Weerakkody said: “The bank’s stellar performance this year amply demonstrates the ‘value’ of long standing relationships that the bank has built over the years. Many Sri Lankans are stakeholders of the bank given the bank’s wide geographical spread and the large customer base cutting across every stratum of society.”

Commercial Bank’s Managing Director and CEO Ravi Dias noted: “Our aim has always been to focus on our fundamentals – strengthening the balance sheet, ensuring stability and maintaining a strong current and savings account base, which at current levels is probably the best in the industry.”

The bank’s total income for 2012 improved by 38.88% to Rs. 63.167 billion,

  • Interest income increasing 37.72% to Rs. 51.838 billion 
  • non-interest income, composed of foreign exchange and other income, growing by 47.62% to Rs. 9.729 billion.

Interest income from loans and advances grew by 45.35% to Rs 41.711 billion. The bank’s total performing loans and advances increased by Rs. 48.824 billion or 17.94% over the 12 months. Interest income from other interest earning assets such as Treasury bills and bonds improved by 13.26% to Rs. 10.128 billion.

With the bank’s deposits portfolio growing by Rs. 64.262 billion or 20.18%,

  • interest expenses grew by 52.31% in the review period to Rs. 29.918 billion.

Consequently, net interest income increased by 21.80% to Rs. 21.920 billion.

The growth in non-interest income was attributable principally to increased foreign exchange income. A high volume of Treasury operations and translation gains generated foreign exchange income of Rs. 4.752 billion, an increase of 104.69%.

Total loans and advances of the bank improved by 17.67% over the 12 months to Rs. 338.843 billion at 31 December 2012.

This growth was carefully managed by the bank in keeping with the guidelines stipulated by the Central Bank of Sri Lanka, Commercial Bank’s Chief Financial Officer Nandika Buddhipala said.

The bank’s total deposits stood at Rs. 382.723 billion at 31 December 2012.

Total assets of the bank crossed the Rs. 500 billion milestone during the year to Rs. 510.75 billion, reflecting a growth of 15.79%. Commercial Bank is the first private bank in Sri Lanka to exceed Rs. 500 billion in assets.

The provisioning policy adopted by the bank under which it made additional provisions over and above the minimum level required by the Central Bank resulted in net provisions for bad and doubtful debts increasing to Rs. 1.496 billion, Buddhipala disclosed. In addition to this the bank made a general provision of Rs. 228 million in the year reviewed.

The bank’s gross non-performing loans ratio reduced marginally from 3.43% in 2011 to 3.37% in 2012, and its net NPL ratio also improved, from 2.08% to 1.84%.

Its interest margin increased by 15 bps to 4.59% from 4.44% a year previously.

Non-interest expenses increased by 17.03% to Rs. 13.858 billion, with staff cost, premises, equipment and establishment charges increasing due to expansion of the branch network and relocation of several branches.

The bank opened 14 new delivery channels and installed 55 new ATMs in Sri Lanka during the review period to end the year with 227 service points and a network of 555 ATMs, which is the single largest ATM network owned by a bank in Sri Lanka. The bank’s Bangladesh operations comprised of 17 service points and 14 ATMs in the year under review.

In other key performance indicators, the bank’s return on equity improved to 20.79% while return on assets improved to 3.01% before tax and 2.12% after tax.

A 10-year subordinated loan of US$ 75 million obtained from the IFC in the first quarter of 2013 would further improve capital adequacy, creating more room for leverage, Buddhipala said.

Taken as a Group, the Commercial Bank, its subsidiaries and associates reported a pre-tax profit of Rs. 14.332 billion at the end of 2012, representing a growth of 29.49%. Profit after tax for the period increased by 24.25% to Rs. 10.058 billion.

Commercial Bank is the only Sri Lankan bank to be listed two years consecutively in the world’s Top 1,000 Banks. The bank has been adjudged ‘Best Bank in Sri Lanka’ for 14 consecutive years by ‘Global Finance’ Magazine, and has won multiple awards as the country’s best bank from ‘The Banker,’ ‘FinanceAsia,’ ‘Euromoney’ and ‘Trade Finance’ magazines.
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