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| Sunday, 12 March 2006 |
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COMBank to increase banking units in Bangladesh The Commercial Bank of Ceylon (CBC) claimed the Sri Lankan bank with the highest market capitalisation, whetted by its success at home and overseas, has projections of increasing the number of its banking units in Bangladesh from three branches and two booths in that country to the maximum 15. CBC has received approval from the Bangladesh Bank to open two new branches in the country's Shylet region. Managing Director, Amitha Gooneratne said that while CBC's initial focus was on corporate banking in Bangladesh, the bank has now decided to move progressively into retail banking and also offer products in this area. Answering queries, Gooneratne said that the bank may enter India in collaboration with an Indian bank as a minimum $25 million capitalisation is needed for entry. CBC, with three banks in the north of the island, has plans to open two more in the region. CBC has the country's largest computer-linked network of 135 branches and operates 220 ATMs. During 2005 the bank was rated the 'Best bank in Sri Lanka and the 'Bank of the year' in Sri Lanka by two international publications, the US based Global Finance for the seventh successive year and the UKs The Banker magazine for the fifth successive year. The bank has projections of exploring the remittance market in a big way over the next few years. Gooneratne said that as part of servicing Sri Lankans employed overseas, the bank has established its presence in three exchange houses in Kuwait, Qatar and Bahrain and plans are afoot to setting up and managing an exchange house in Qatar on its own. Presenting its 2005 report of accounts, the bank has a pre tax profit growth by 41.4 percent to Rs 3.6 billion and a post tax profit up 36 percent to Rs 2.3 billion. With growth in all key financial performance indicators, shareholder value indicators and sector-related ratios, the bank retains its position as the country's most successful bank, it was claimed. Chairman Mahendra Amarasuriya said that the bank retained the AA+ (sri) national rating by Fitch Ratings Lanka for its implied long-term unsecured debt. "This is the highest rating given by FRL to any indigenous private bank to date." Gooneratne said that the total deposits of the group rose to Rs 127.490 billion as at end-December 2005 from Rs 98.621 billion, reflecting a growth of Rs 28.8 billion or 29.27 percent. Further, the growth of the fund base was boosted by the syndicated loan of $65 million raised by the bank from overseas sources. The gross advances portfolio of the group also grew by more than Rs 28 billion to Rs 124.350 billion at end-December 2005 reflecting a percentage growth of 29.33 percent. The group's total income grew to Rs 16.2 billion from Rs 12.4 billion last year, a growth of Rs 3.8 billion or 30.46 percent. Net income of the group grew from Rs 7.397 billion to Rs 8.766 billion, a growth of Rs 1.369 billion to 18.51 percent. The total assets of the group rose to Rs 180.135 billion from Rs 141.792 billion last year, a growth or Rs 38.34 billion or 27.04 percent. The new tax regime introduced through the 2006 budget will require the bank to pay 55 to 60 percent of its profits as taxes this year. Shareholders will be paid a dividend of 30 percent for 2005, in addition to the interim dividend of 15 percent. Senior deputy general manager (finance and planning) Ranjith Samaranayake said net interest income of the group, its principal source of income rose to Rs 5.834 billion from Rs 4.738 billion in 2004. The group's income growth was further boosted by an increase in fee and commission income which rose to Rs 1.759 billion, a growth of 27.78 percent. Other income recorded a growth of Rs 177.44 million, rising from Rs 408.6 million in 2004 to Rs 586 million this year. - EL |
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