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| Sunday, 5 December 2004 |
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| News Business Features Editorial
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Commercial Bank records impressive growth The Commercial Bank of Ceylon Ltd., has recorded remarkable growth in pre and post tax profits, for the nine months ended September 30, 2004. The bank reports this week that pre-tax profits grew 70.93 per cent to Rs. 1,886 million at the end of the third quarter of the year, despite the increase in special VAT from 10 to 15 per cent in 2004. The post-tax profit of the bank totalled Rs. 1,310 million, a growth of Rs. 461 million or 54.42 per cent. Despite a significant increase in the Bank's tax liability as a result of increased tax rates, applicable on the profits of its off shore banking unit and the changes in the taxation of the secondary market transactions, on government securities. Commercial Bank's Deputy General Manager - Finance and Planning, Ranjith Samaranayake said that these noteworthy increases in the Bank's pre, and post tax, profits were facilitated by many factors. The contribution from the bank's Bangladesh operations in 2004, which was not in the books in 2003, was one. He said the Bank's continued ability to maintain its growth, momentum, judicious fund management, cost efficiency, and improved credit quality, had immensely contributed to its success. Total deposits increased to Rs. 89.6 billion, during the period under review,reflecting a growth of Rs. 14.4 billion, or a percentage growth of 19.17.Similarly, net advances increased to Rs. 76.8 billion, recording a growth of Rs. 10.5 billion, or a percentage growth of 15.91, total assets of the Bank also increased to Rs. 122.6 billion recording a growth of Rs. 12.3 billion or 11.15 per cent. As a result of the business growth, and better management of interest margins, significant increases were achieved in almost all core business areas, Samaranayake said. Total income of the Bank increased from 36.97 per cent to Rs. 8.992 billion, an increase of Rs. 2.427 billion. Net interest income, is the principal source of income of the Bank, recorded a healthy growth of Rs. 845 million to Rs. 3.396 billion in the period under review, was an increase of 33.13 per cent. Exchange profit that was adversely affected by the appreciating Rupee against the US Dollar in the third quarter of last year, increased to Rs. 707 million in 2004 recording a growth of Rs. 535 million, or 310 per cent, partly due to the depreciation of rupee against the US dollar during the period under review. Fee based and other income also recorded a significant growth of Rs. 502 million to Rs. 1.372 billion in 2004, a growth of 57.68 per cent. |
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