The Commercial Bank of Ceylon Group, comprising the bank, its subsidiaries and an associate, has reported gross income of Rs 163.12 billion for the six months ending June 30, 2024, a decline of 2.71% over the corresponding period of 2023.
However, gross income for the second quarter, at Rs 82.91 billion, was down only by a marginal 0.73%, reflecting an improvement over the first quarter.
Interest income for the six months under review amounted to Rs 139.26 billion, a drop of 7.66%, but with interest expenses for the same period reducing by 28.86% to Rs 80.64 billion as a result of an improvement in the Bank’s CASA ratio and repricing of deposits, net interest income grew by 56.53% to Rs 58.62 billion.
The CASA ratio of the Bank improved to 39.95% as at June 30, 2024, from 39.23% as at December 2023 and 38.83% at the end of the first half of the previous year.
The Group ended the first half of 2024 with gross loans and advances of Rs 1.36 trillion, a growth of Rs 67.55 billion or 5.21% over six months.
Deposits grew by 2.1% to Rs 2.19 trillion in the six months reviewed.
Total assets of the Group increased by Rs 228.30 billion or 9.27% YoY, and by Rs 34.85 billion or 1.31% in the period under review to reach Rs 2.690 trillion as at June 30, 2024.
Total operating income of the Group for the six months grew by 52.92% to Rs 77.26 billion. The Group made provisions of Rs. 19.02 billion for impairment charges and other losses.
Net operating income increased by 56.10% to Rs 58.24 billion. With total operating expenses for the six months increasing by a lower rate of 14.93% to Rs 24.46 billion, the Group reported operating profit before taxes on financial services of Rs 33.78 billion, a growth of 110.80%.
Taxes on financial services increased by 140.96% to Rs 4.66 billion, leading to a Group profit before tax of Rs 29.12 billion for the six months, an improvement of 106.62%. Income tax for the six months increased by 76.12% to Rs 10.22 billion, resulting in a net after tax profit of Rs 18.90 billion for the first half of 2024, a growth of 127.96% compared to the first half of 2023.
Taken separately, Commercial Bank of Ceylon PLC reported profit before tax of Rs 28.02 billion and profit after tax of Rs 18.10 billion for the six months, achieving growths of 116.02% and 140.87%, respectively, for the first half of 2024.
In July 2024, the Bank raised Rs 20 billion via a debenture issue, while its rights issue of ordinary shares this month, the largest rights issue by a private sector bank in the country, is expected to raise up to Rs 22.54 billion, further strengthening capital adequacy.
Return on assets (before tax) stood at 2.17% compared to 1.27% for 2023, while its return on equity grew to 16.76% from 9.78% for 2023.
The Bank’s Cost to income ratio inclusive of taxes on financial services stood at 37.82% compared to 40.31% in 2023. In terms of asset quality, the Bank’s impaired loans (Stage 3) ratio stood at 4.87% compared to 5.85% at end 2023, while its impairment (Stage 3) to Stage 3 loans ratio increased to 49.18% as at June 30, 2024 compared to 43.22% at end 2023, consequent to the increase in impairment provisions for the six months reviewed.
