COMbank Group post tax profit up 46.9% to Rs. 4.1 billion

The Commercial Bank Group comprising the bank, its subsidiaries and associate companies has reported a profit before tax and after special financial VAT of Rs. 6.791 billion for the 12 months ending December 31, 2007, an increase of Rs. 1.716 billion or 33.8 per cent over the normalised pre-tax profit for the previous year.

The Group's profit after tax and financial VAT at Rs. 4.152 billion reflected an even higher growth of 46.9 per cent on a normalised basis or Rs. 1.327 billion, on a turnover of Rs. 35.207 billion, which was up 43.9 per cent in the year under review.

Deputy Chairman B. R. L. Fernando told a media briefing that the Commercial Bank, the largest entity in the Group, turned in a still stronger performance, with normalised pre-tax profit (after financial VAT) up 34.9 per cent to Rs. 6.705 billion and normalised profit after tax growing 48.35 per cent to Rs. 4.103 billion.

Describing the Bank's performance as "an impressive achievement in any circumstance," Fernando said: "that we delivered this performance in a situation of high inflation, volatile interest rates and escalating internal strife is a reflection of the prudent management strategy and the creativity of the Commercial Bank team.

The Group had delivered three interim dividends of Rs. 1.50 each in the year reviewed and proposed a fourth and final dividend of Rs. 2.50, taking the total dividend payout to Rs. 7 per share for 2007.

Fernando said the profit growth of the Group was facilitated by an increase of Rs. 3.994 billion or 52.6 per cent in net interest income, which reached Rs. 11.587 billion at the end of 2007.