ComBank records highest profit in first half of 2006

The Commercial Bank Group comprising Sri Lanka's leading private sector bank, its subsidiaries and associate companies has reported strong profit growth for the first half of 2006, on the back of healthy growth in exchange profit and net interest income.

The Group recorded a pre-tax profit of Rs 2,567.1 million for the first half of 2006 as against Rs 1,460.0 million in the corresponding period last year, a growth of Rs 1,107.1 million or 75.83 per cent. This is the highest first half profit, thus far reported by its peer banks.

Post-tax profit of the Group rose to Rs 1,475.1 million for the first half of 2006 from Rs 873.9 million, a growth of Rs 601.2 million or 68.8 per cent.

Explaining the substantial increase in pre-tax profit of the Group Commercial Bank's Senior Deputy General Manager (Finance and Planning) Ranjith Samaranayake said this was partly due to the profit from the sale of part of the investment in DFCC Bank shares during the second quarter of the year and the recognition of mark to market gains which arose as a result of transferring another portion of DFCC Bank shares, to the trading portfolio of the bank.

Discounting the mark to market gains and profit on sale of DFCC shares, the normal pre-tax profit of the Group amounted to Rs 2,236.3 million as against Rs 1,460.0 million reported for the first half of 2005, which reflected a growth of Rs 776.3 million or 53.2 per cent.