COMBank post tax profits top Rs. 1 billion in 1Q, 2007

Strong profit growth based on the exceptional performance of fund-based operations have enabled the Commercial Bank Group to post robust pre and post tax profits for the first quarter of 2007.

In results released to the Colombo Stock Exchange this week, the Commercial Bank Group consisting of Sri Lanka's benchmark private sector bank and its subsidiaries and associate companies have reported a pre-tax profit of Rs. 1,577.8 million for the first quarter of 2007, a growth of Rs. 322.8 million or 25.72 per cent over the corresponding quarter in 2006.

The post-tax profit of the Group topped Rs. 1 billion (Rs. 1,029.2 million) for the quarter reviewed, the first time that post tax profit has topped a billion rupees in a quarter.

Compared to the post tax profit of Rs. 751.7 million recorded in the first quarter of 2006, this represents a growth of Rs. 277.5 million or 36.92 per cent. The higher growth in post-tax profit was mainly due to corporate taxation increasing only by Rs. 45.3 million or 9 per cent due to a reversal of Rs. 184.3 million on account of the Deferred Tax Provision in the first quarter 2007, the bank said.

According to Commercial Bank's Senior Deputy General Manager - Finance and Planning Ranjith Samaranayake pre-tax profit growth was facilitated mainly by net interest income rising from Rs. 1.634 billion in the first quarter 2006 to Rs. 2.432 billion in the concluded quarter, an increase of Rs. 798.8 million or 48.90 per cent. This increase was attributed to the growth momentum maintained by the Bank in its fund-based operations.

Total deposits of the Group grew by Rs. 11.21 billion or 7.12 per cent from Rs. 157.532 billion as at December 31, 2006 to Rs. 168.751 billion as at March 31, 2007.