Commercial Bank shows growth amidst rate hikes

Commercial Bank’s overseas operations encompass Bangladesh, where the bank operates 18 outlets, Myanmar - where it has a Representative Office in Yangon and the Maldives, where the bank opened a fully- fledged Tier I Bank in September 2016.

The bank has also received a licence to operate a fully- owned Money Transfer Operation in Italy. Commercial Bank Managing Director/CEO Jegan Durairatnam said in a media release the bank achieved noteworthy growth in its loan book while continuing to improve the 9-mth’15

(Rs. bln) 12.19 8.45 56.70 624.1 264 879.80 809.46 3.11 22.39 13.9 20.5 17.94 13.84 quality of its loan portfolio and significantly reducing impairment charges in the review period. “We continue to focus on key operational indicators as we grow and expand overseas, ensuring that the bank adapts well to the changing conditions,” he said.

The bank’s gross and net non-performing loans (NPL) ratios improved to 2.49 per cent and 1.26 per cent respectively from 2.74 per cent and 1.41 per cent at the end of 2015., the release said. "These ratios were 3.01 per cent and 1.52 per cent at the end of the third quarter of last year."

The bank’s interest margin reduced to 3.53 per cent at the end of the nine months reviewed, principally due to the rising costs of funds. Return on Assets (RoA) before tax improved to 2.02 per cent per cent compared with 1.95 per cent for the first nine months of that year, it added.

"As a group, Commercial Bank, its subsidiaries and associates reported profit before tax of Rs 14.006 billion for the nine months ending 30th September2016, an improvement of 14.48 per cent." Profit after tax of the group for the period grew by 20.87 to Rs 10.195 billion.