ComBank ends 1Q as first private sector banking group on cusp of Rs. 3 t assets milestone

Loan book grows by Rs. 116.75 b in three months to Rs. 1.642 t Net interest income up 23.53% to Rs. 34.21 b Improves provision cover and interest margin alongside balance sheet growth Reports three-month PBT of Rs. 22.56 b and PAT of Rs. 14.97 b, with taxes amounting to Rs. 11.61 b

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THE Commercial Bank of Ceylon Group said yesterday it has made a characteristically strong start to 2025, recording healthy profit and balance sheet growth in the first quarter of the year.

Comprising of Sri Lanka's largest private sector bank, its subsidiaries, and an associate, the Group reported in a filing with the Colombo Stock Exchange (CSE) that assets reached Rs. 2.999 trillion as at 31 March 2025.

Gross income for the quarter grew by 9.85% to Rs. 88.10 billion, while interest income improved by 3.14% to Rs. 72.60 billion. Interest expenses reduced by 10.09% to Rs. 38.38 billion as a result of repricing of liabilities amidst the lower rates regime that prevailed, generating a 23.53% growth in net interest income, which amounted to Rs. 34.21 billion for the three months reviewed.

Total operating income grew by 33.40% to Rs. 46.62 billion, but the Group's provision for impairment charges and other losses was increased by 110.44% to Rs. 7.23 billion, with additional provisions made on a prudential basis for individually-significant customers, which resulted in an improvement in the bank's impaired loans (Stage 3) ratio.

Consequently, net operating income for the three months, at Rs. 39.39 billion, reflected a growth of 25%, while the Group's ability to keep operating expenses down to Rs. 12.80 billion, an increase of just 6.20%, resulted in operating profit before taxes on financial services improving by 36.64% to Rs. 26.59 billion.

Taxes on financial services increased by 48.18% to Rs. 4.03 billion resulting in a Group Profit Before Tax (PBT) of Rs. 22.56 billion for the three months, an improvement of 34.77%.