BoC PBT up by 66%, deposit base increases to Rs. 4 Tn in 3Q-2024

• 5opn1
• November 14, 2024
• Banking and Financial
• BoC
• 0 Comments

In the first nine months of 2024, Bank of Ceylon skillfully navigated Sri Lanka’s complex economic terrain. Despite intense competition and global economic headwinds, the Bank achieved a remarkable profit before tax (PBT) of Rs. 37.6 billion, a substantial 66% increase over the same period in the previous year.

General Manager, Chief Executive Officer, Russel Fonseka emphasized, “Our robust financial results are a testament to the strength and stability we’ve demonstrated in this challenging economic climate. Moving forward, the Bank remains committed to expanding our service offerings, pioneering digital banking solutions, and solidifying our leadership position in Sri Lanka’s banking sector.”

Bank successfully reprised its assets and liabilities, leading to a significant 85% increase in net interest income to Rs. 94.5 billion compared to Rs. 51.2 billion in the same period of 2023.

While interest income rose to Rs. 320.2 billion, interest expenses also increased to Rs. 225.7 billion. This strategic decision to offer competitive deposit rates was essential to retain and grow the Bank’s deposit base. Net fee and commission income remained a strong contributor, reaching Rs. 15.1 billion, 17% YoY increase from Rs. 12.9 billion in the corresponding period of 2023.

Impairment charges amounted to Rs. 5.8 billion for loans and advances and Rs. 7.5 billion for other financial assets, reflecting challenges faced by sectors still recovering from economic downturns and global disruptions. The Bank reported total operating income of Rs. 112.4 billion, reflecting a significant growth of 105% compared to the previous year.

This increase was driven by substantial improvements in net interest income, net fee and commission income and trading income.

Operating expenses amounted to Rs. 48.9 billion, marking a 30% YoY increase, which was mainly due to increased personnel costs and other overhead expenses. Despite these higher expenses, the Bank effectively managed its operating costs, maintaining a cost-to-income ratio below 50%, consistent with previous quarter.

The Bank’s operating profit before taxes on financial services reached Rs. 50.2 billion, a remarkable 62% improvement over the previous year. After accounting for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL), the PBT stood at Rs. 37.6 billion, reflecting a 66% increase.