Combank’s 9-month post tax up 25% to Rs 10.9 bln

The Commercial Bank of Ceylon says has succeeded in achieving top 3rd quarter results, with “robust growth in gross income and profits following noteworthy increases in lending and strong gains in foreign exchange income”.

The bank’s pre-tax profit was Rs 10.9 billion for the nine months ending 30th September 2012, up 25.48 per cent. Profit after tax for the period was up 25.41 per cent to Rs 7.6 billion, the organization said in a media release.

Gross income was Rs 45.6 billion for the nine months, an increase of Rs 12.7 billion or 38.61 per cent over the corresponding period of last year.

Within this, interest income grew by 35 per cent to Rs 37.2 billion, consequent to substantial expansion of the bank’s loans port- folio, while non-interest income improved by 70.57 per cent to Rs 7.6 billion, facilitated by foreign exchange income of Rs 4 billion.

"Our results continue to be encouraging on all fronts, even in a changing environment,” noted Chairman Dinesh Weerakkody, adding “building on our momentum with a focus on core banking, the bank posted a solid monthly average growth in both loans and deposits amounting to Rs 4.5 billion and Rs 5.9 billion respectively during the period under review. Such exemplary performance reinforces the key role played by Commercial Bank in the national economy."

Within non-interest income, an increase in the volume of foreign currency operations of the bank and the translation gains recognised consequent to the deprecia- tion of the Sri Lanka Rupee against the US Dollar during the nine months, combined to boost foreign exchange income. In addition, the other income of the bank, which mainly comprises of commission income and investment income, recorded an increase of 17.75 per cent and reached Rs 3.5 billion.

Commercial Bank’s Gross Loans & Advances stood at Rs 329 billion as at 30th September 2012, an increase of Rs 41 billion from 31st December 2011. Total deposits grew by Rs 53 billion over the same period to Rs 371.904 billion.

Net provisions for bad and doubtful debts increased to Rs 1.2 billion as against a net reversal of Rs 480 million for the first nine months of 2011, principally as a result of a more stringent provision policy adopted by the bank.