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| Sunday, 13 March 2005 |
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ComBank pre-tax profit up 27.2% to Rs 2.6 billion The Commercial Bank of Ceylon has ended 2004, a year it describes as "turbulent," on a high note, with a solid financial performance which it says enabled it to maintain its pre-eminent position as the country's leading private sector bank. Releasing its annual report, a sectoral benchmark, the Commercial Bank Group comprising the bank, its subsidiaries and associate companies, said that pre-tax profit had crossed a milestone Rs 2.5 billion (Rs 2.594 billion), recording a growth of Rs 555 million or 27.24 per cent after provision for special VAT computed on net profit before tax and staff costs. Group turnover, up Rs 2.687 billion to Rs 12.437 billion, reflected a similar growth of 27.56 per cent following solid growth in deposits, advances and principal income generators in a performance the bank described as "gritty" in circumstances that it said were adverse. Deposits rose from Rs 75.1 billion at end 2003 to Rs 98.6 billion, a growth of Rs 23.5 billion or 31.3 per cent, while the growth in advances mirrored the trend with a growth of 34.75 per cent or Rs 24.8 billion to reach Rs 96.2 billion as at December 31, 2004. Total assets grew 25.68 per cent (Rs 29.0 billion) to Rs 141.8 billion in the year under review. The group's post-tax profit took a hit from a significant increase in its income tax liability, which recorded an extraordinary increase of 51.67 per cent (Rs 295.5 million) over the previous year, growing from Rs 571.9 million to Rs 867.4 million. Despite this higher provision, the Group said it was pleased with the post-tax profit of Rs 1.727 billion, which represents a growth of 17.71 per cent. Presenting the Group's first all Black and White annual report since the advent of colour printing, an acknowledgment of the scars inflicted on the nation by the year-end tsunami, Commercial Bank Chairman Mahendra Amarasuriya said: "According to the published results of peer banks up to September 30, 2004, the Commercial Bank continued to be the most profitable and financially sound local bank in terms of profit levels as well as other key financial indicators such as capital adequacy ratios, return on assets ratio, cost income ratio, net assets per share and earnings per share." He said that the Board of Directors has recommended a final dividend of 40 per cent, in addition to the interim dividend of 20 per cent paid in November 2004. |
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