ComBank's first half 2017 performance 'extremely pleasing'

Commercial Bank of Ceylon's first half 2017 pre- tax profit ( PBT) grew by 17.19 per cent to Rs. 10.425 billion while its post- tax profit rose by 16.21 per cent to Rs. 7.540 billion.

"There has been a perceptible further improvement across all key performance indicators, which is extremely pleasing given that margins have been narrowing over several quarters," Commercial Bank Chairman Dharma Dheerasinghe said in a media release issued by the bank. "We believe the bank's agility, despite its size, increases its ability to respond and adapt to changing local and global conditions."

Commercial Bank Managing Director Jegan Durairatnam, said: "We continued to improve our Current Account - Savings Account ( CASA) volumes in absolute terms, cost - income and capital adequacy ratios in the second quarter through better operational performance and our increase in stated capital.

The bank is well prepared to meet the enhanced capital adequacy requirements stipulated under Basel III which became effective on 1st July 2017."

Reflecting the higher volumes of business witnessed in the six months reviewed, Commercial Bank's gross income grew by 28.84 per cent or Rs. 12.383 billion to Rs. 55.319 billion at end June 2017.

Interest income improved by 30.69 per cent to Rs. 48.959 billion while interest expenses grew significantly higher by 45.84 per cent to Rs. 31.138 billion.

Deposit growth averaged more than Rs 10 billion per month in the six months reviewed, growing by 8.16 per cent from Rs. 739.563 billion as at end December 2016 to Rs. 799.902 billion at end June 2017.