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* Cost to Income Ratio (before VAT on financial services) improved to 30.73% against 33.95% at the end of 2020 and 38.51% at the end of 2019

* Pay 10.981 billion rupees in total in taxes

* CASA ratio continues to improve, sets industry benchmark at 47.05%

* Growth in depreciation charges reduced to 7.56%; totals Rs 17.997 billion

* Provision coverage further strengthened to 63.03%; the net NPL ratio improves to 1.83%

The Commercial Bank of Ceylan Group achieved typically fair growth for the nine months ending September 30, 2021, despite a slowdown by some key contributors in the third quarter of the year.

The group, comprising Commercial Bank of Ceylon PLC – Sri Lanka’s largest private sector bank – its subsidiaries and a partner, reported gross income of Rs 120.050 billion for the period, an improvement of 5.66% over nine corresponding months of 2020, with the third quarter registering growth of 4.34% compared to the growth of 6.34% achieved in the first half of 2021.

Interest income, the main component of gross income, increased 3.43% to 96.227 billion rupees, improving from the 3.20% growth achieved through June 2021, and charges interest rates continued to fall, albeit at a lower rate than in the first half of the year, the Group said. As a result, interest charges fell 13.42% to Rs 48.693 billion for the nine months, allowing the Group to post net interest income of Rs 47.533 billion, registering an increase of 29.18%.

Among the other major contributors to gross income, fee and commission income increased 32.21% to 11.002 billion rupees; Other net operating income improved by 13.91% to Rs 7.808 billion thanks to higher foreign exchange gains; net gains from derecognition of financial assets contributed to Rs 2.976 billion and net trading gains amounted to Rs 2.037 billion, an increase of 171.95%. Net gains from derecognition of financial assets fell 36.10% due to a reduction in profits from the sale of Treasury bonds and sovereign bonds of Rs 1.417 billion, compared to the third quarter of the year. last year, the group said.

Total operating income at Rs 68.951 billion for the nine months, reflects growth of 23.53% and the group’s remarkable achievement of limiting depreciation charges to Rs 17.997 billion during the period under review, an increase of only 7.56% compared to a growth of 47.44%. at the end of the first half of 2021, resulted in net operating income growing by 30.37% to Rs 50.954 billion. With the Group’s consistency in reducing the growth of operating expenses to 8.39% (8.42% for the first half of 2021), the total operating expenses for the nine months increased from Rs 1.647 billion to Rs 21.280 billion.

As a result, operating profit before VAT on financial services increased by 52.55% to Rs 29.674 billion for the nine months, improving from the growth of 41.09% recorded at the end of the first six. months of the year.

Commercial Bank President Judge K. Sripavan noted that these results demonstrate Commercial Bank’s strong ability to maintain healthy and balanced growth in core banking operations to mitigate the impacts of fluctuations in operating income. fees and other operating income. “Each quarter, the Bank maintains or improves its key performance ratios to become even more financially stable and better positioned to continue its mission as a systemically important bank,” he said.

Bank Managing Director S. Renganathan explained that Commercial Bank continued to improve its CASA ratio, cost-income ratio, provisions for impairment and provision coverage during the review period, revealing that charges for depreciation and other losses had actually declined a remarkable 41.87% in the third quarter. “These are great indicators of our relentless focus on banking fundamentals even as we continue to make concessions to our clients given the difficult circumstances that prevail,” said Renganathan. “It should be noted that in terms of profitability, the Group also exceeded its 2020 annual performance at the end of the third quarter of 2021 while improving its interest margins, return on assets and return on equity. “

The Group paid Rs 4.608 billion in value added tax on financial services for the nine months, an increase of 50.55% in line with profit growth. As a result, profit before tax for the period amounted to Rs 25.067 billion, an improvement of 52.90%. Income tax rose 15.92% to Rs 6.049 billion, the relatively lower rate attributable to the reduction in the income tax rate. As a result, after-tax profit for the nine months examined increased by 70.17% to Rs 19.017 billion. This is notably Rs 1.931 billion or 11.30% more than the net profit of the Group for the whole of 2020. The total taxes paid by the Group for the nine months amount to Rs 10.981 billion.


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