BOC posts Rs.3.5bn net in 2Q12
Bank of Ceylon recorded a 67.4 percent Year-onYear (YoY) increase in group net profit, reaching Rs.3.56 billion during the quarter ended June 30, boosted by improvements in core banking operations and a foreign exchange income of Rs.1.21 billion, from a loss of Rs.127.7 million in the previous year.
The state-owned bank saw its revenue rise by 15 percent YoY to Rs.27.2 billion during the quarter, with net interest income accounting for Rs.8.8 billion of group profits, up from Rs.6.25 billion last year.
Non-interest income during the quarter accounted for Rs.4.17 billion, increasing by 62.4 percent YoY. Meanwhile, the banking group provided Rs.522.7 million for loan losses against provision reversal of Rs.157.9 million.
Return on assets rose to 2.34 percent from 2.0 percent and return on equity rose to 34.72 percent from 30.78 percent.
Meanwhile, interest margin rose to 3.51 percent in the March quarter from 3.32 percent in the December 2011 quarter.
Total deposits for the first half of 2012 was recorded at Rs.660.2 billion, whilst earnings per share improved from Rs.424.9 to Rs.711.3.
BOC is a key lender to the state and state-owned enterprises. Its government securities portfolio rose 56.7 percent to Rs.201 billion from December to March 2012.
Over the first six months of the year (1H12), BOC generated a net profit of Rs.8.02 billion, up from Rs.4.31 billion in the previous year, with interest income accounting for Rs.16.7 billion of profits, up from Rs.12.1 billion last year.
Non-interest income increased from Rs.5.29 billion in 2011 to Rs 9.52 billion this year, with group profits being bolstered significantly by Rs.4.13 billion in foreign exchange income over the first half, as compared with Rs 21 million in the previous year.Earnings per share over the first half stood at Rs.3,208.5 as compared with Rs.1,724.3 in 1H11.