COMBank's 1Q PBT up 40% to Rs 4.145b

Growth in interest income on loans and advances, complemented by gains in foreign exchange income continued to underpin financial performance at Commercial Bank of Ceylon PLC, enabling to post strong results for the first quarter of 2012.

The Bank has reported Profit Before Tax of Rs 4.145 billion for the three months ended March 31, an increase of 40 percent over 1Q 2011 while Profit After Tax for the three months grew 38 percent to Rs 2.843b.

Interest Income improved by Rs 2.422b or 27.43 percent to Rs 11.25b, mainly as a result of the interest income on loans and advances growing by a noteworthy 42.44 per cent to Rs 9.075b.

"These results reflect a continuation of the momentum achieved in 2011, even under challenging market conditions" Commercial Bank's Managing Director and CEO, Ravi Dias said.

"Loan growth was steady in the quarter reviewed, and the challenge for the rest of the year would be to maintain the cost of funds."

The total deposits of the Bank stood at Rs. 351.040b as at March 31, 2012, reflecting a growth of 10.23 percent from Rs.318.461b as at December 31 2011.

Gross loans and advances of the Bank too increased and stood at Rs. 308.670b, reflecting a growth of 7.19 percent. Total assets of the Bank reached Rs. 474.952b as at March 31, 2012, recording a growth of 7.67 percent compared to Rs. 441.099b as at December 31, 2011.

Commercial Bank's Chief Financial Officer, Nandika Buddhipala said Net Interest Income grew by 17 percent to Rs 5.065b. Meanwhile, Non-interest Income (commissions, investment income, foreign exchange and other income) recorded a growth of Rs 1.927b or 130 percent to Rs 3.406b mainly as a result of translation gains following the depreciation of the Sri Lanka Rupee against the US Dollar in the quarter under review, he said.

Provisions on account of Bad and Doubtful Debts (net of recoveries) too increased by Rs. 704.6m during the period under review compared to the corresponding period in 2011.