ComBank posts strong Q3 balance sheet growth

A heightened emphasis on lending has seen the Commercial Bank Group increase gross loans and advances by Rs.51.404 billion in the third quarter of 2023 at a monthly average of Rs.17.135 billion, growing its loan book by 4.33 per cent over three months to Rs.1.239 trillion and reversing the trend of the first half of the year.

The group’s deposits crossed the Rs.2 trillion milestone in the same period, growing by Rs.79.808 billion or 4.07 per cent to Rs.2.038 trillion as at 30th September 2023, achieving a monthly average increase of Rs.26.603 billion in the third quarter, the bank said on a media release.

Gross income at Rs.255.963 billion reflected an increase of 52.66 per cent since 30th June 2023, and an improvement of 30.88 per cent over the corresponding nine months of 2022, while interest income at Rs.224.570 billion was up 48.91 per cent over the figure for the first half of the year, and an improvement of 49.46 per cent a year ago.

Commenting on these results, Commercial Bank Chairman Prof. Ananda Jayawardane said: “Our performance reflects the continuing impacts of external factors that influence multiple aspects of income generation, investments, risk management, lending, deposit mobilisation and asset-liability matching. In this scenario, banks need to retain their focus on their fundamental role of financial intermediation, and our results for the third quarter in particular, reflect this focus.”

Commercial Bank Managing Director/CEO Sanath Manatunge added: “We are encouraged by the growth in our loan book despite the effect of the appreciation of the Rupee on the value of the portfolio. Extra attention is being given to expand our balance sheet with emphasis on credit growth, which also supports efforts to revive the national economy. Our liquid assets ratio is well above the statutory minimum requirement, enabling the bank to continue to be the biggest lender to the SME segment in particular, which is the major contributor to the economy.”

For the third quarter of 2023, the group posted pre- and post-tax profits of Rs.10.939 billion and Rs.6.473 billion respectively, which represent increases of 26.30 per cent and 3.03 per cent.