BoC pre-tax profit up 26% to Rs. 847 million in 1Q, 2006

The Bank of Ceylon (BoC) recorded a pre-tax profit of Rs. 847 million for the first quarter of 2006, an increase of Rs. 172 million compared to the pre-tax profit of Rs. 675 million in the corresponding period of 2005, a 26 percent growth despite severe competition in core banking.

The BoC achieved Rs. 626 million after tax profits up to March 31, 2006, an increase of Rs. 142 million and 29 percent growth over the after tax profit of Rs. 484 million reported in the same period last year.

The operating profit for the first quarter of this year was Rs. 968 million, an increase of Rs. 355 million and a 58 percent growth compared to the operating profit of Rs. 613 million in 2005. The bank's total income increased from Rs. 5,380 million to Rs. 7,380 million for the quarter ended March 31, 2006, a 37 percent increase compared to the corresponding period in 2005.

The BoC was rated AA (sri) by Fitch Ratings (Lanka) Ltd in 2005, which demonstrates the bank's strong financial position. The bank hopes to achieve a new rating this year, BoC sources said.

The BoC was able to maintain and manage financial stability and healthy liquidity throughout 2005. The bank obtained Rs. 239,259 million from deposit earnings for the period ending March 31, 2006 which is an increase of Rs. 36,783 million over the deposit earnings of Rs. 202,475 million in the corresponding period of 2005.

The bank's total advances grew by 31 percent to Rs. 184,487 million from Rs. 142,066 million achieved during the same period last year. The total assets were Rs. 311,394 million, an increase of Rs. 33,072 over the assets of Rs. 278,322 reported in the corresponding period of 2005.

The Non-Performing Loan Ratio (with foreclosed properties) improved to 7.20 percent from 10.81 percent recorded last year.

The bank recorded a milestone in the local banking industry by becoming the first commercial bank having assets in excess of Rs. 300 billion. In 2005 the BoC became the market leader in inward foreign currency remittances having crossed the Rs. 109 billion mark, with a 66 percent market share, sources said.

The branch network of the bank increased to 304 with 300 domestic and four off shore branches. The number of depositors rose to 5,881,798 in the first three months of this year.

The bank's employee strength is over 8,626 in 189 branches and 24 extension offices with online Realtime Processing facility. The BoC has been playing a prominent role in financing business and development activities of the economy. The bank extended facilities to sectors such as tourism, fisheries, transport, health, finance and power generation, sources said.

The bank approved Rs. 60 million to rehabilitate a hotel in the south affected by the tsunami. Two hotels are to be funded with around Rs. 120 million under the 'Susahana' special loan scheme.

The bank financed the fisheries sector which was badly affected by the tsunami by importing outboard motors valued at nearly Rs. 260 million last year. There are plans to finance a regional water supply scheme with a credit facility to support the government's regional development program, sources said.

(LF)