The Commercial Bank of Ceylon Group has achieved impressive growth at the end of the third quarter of 2024.
Comprising of a bank, its subsidiaries and an associate, the Commercial Bank Group has reported net interest income of Rs 88.98 billion for the nine months ended September 30, 2024, an increase of 46.15.
The Group posted gross income of Rs 241.71 billion for the period, down 5.57% over the corresponding nine months of 2023.
Interest income was similarly impacted, reducing by 7.77% to Rs 207.12 billion, but repricing of deposits and a further improvement in the CASA ratio brought interest expenses down by 27.83% to Rs 118.14 billion, enabling healthy growth in net interest income, the Group said in a filing with the Colombo Stock Exchange (CSE).
For the nine months reviewed, the Group reported gross loans and advances of Rs 1.42 trillion, a growth of Rs 121.06 billion or 9.34% since December 2023, at a monthly average of Rs 13.45 billion. Significantly, 44.20% of loan book growth was recorded in the third quarter of the year.
Deposits increased by 3.66% to Rs 2.23 trillion in the nine months, despite the appreciation of the Rupee against the Dollar.
While Rupee deposits grew by over Rs 120 billion in the review period, the Rupee value of foreign currency deposits reduced by Rs 46.19 billion, due to the appreciation of the Rupee.
Total assets of the Group reached Rs 2.76 trillion as at September 30, 2024.
Total operating income of the Group improved by 33.86% to Rs 115.72 billion. The Group made provisions of Rs 20.02 billion for impairment charges and other losses, a reduction of 22.35% over the figure of Rs 25.78 billion for the corresponding nine months of 2023, which included a provision of Rs 12.57 billion for the third quarter alone. In contrast, impairment charges for the third quarter of 2024 were just Rs 1 billion.
The Group reported an operating profit before taxes on financial services of Rs 59.21 billion.
Taxes on financial services increased by 141.95% to Rs 8.87 billion, resulting in profit before tax of Rs 50.34 billion for the nine months, an improvement of 101.14%. Income tax for the nine months increased by 83.13% to Rs 18.80 billion, leading to a net profit of Rs 31.54 billion.
Total tax charges of the Group at the end of the third quarter amounted to Rs 27.67 billion.
Taken separately, Commercial Bank of Ceylon PLC reported profit before tax of Rs 48.73 billion and profit after tax of Rs 30.38 billion for the nine months reviewed, recording growths of 112.70% and 128.33%.
Return on assets (before tax) stood at 2.47% compared to 1.27% for 2023, while its return on equity grew to 17.42% from 9.78% for 2023.
The Bank’s cost to income ratio excluding taxes on financial services stood at 31.49%. The cost to income ratio inclusive of taxes on financial services improved to 39.36% as at September 30, 2024 from 40.31% at end 2023 and 41.54% as at September 30, 2023.
The Bank’s impaired loans (Stage 3) ratio stood at 4.08% compared to 4.87% at end June 2024, 5.85% at end 2023 and 6.11% at end September 2023. The Impairment (Stage 3) to Stage 3 loans ratio improved to 53.54% from 49.18% as at June 30, 2024 and 43.22% at end 2023.
