Commercial Bank posts all-round growth in 2014

The Commercial Bank of Ceylon PLC ended 2014 on a strong note, withstanding challenging conditions in Sri Lanka and Bangladesh to post a profit (before tax) of Rs 15.736 billion for the year, an improvement of 8.45%.

Commercial Bank reported profit after tax of Rs 11.180 billion, which reflected a growth of 7.03%, despite marginally lower interest income due to a drop in the rate of returns on interest earning assets.

However, the strong performance of the Bank's loan book, which grew by Rs 84.3 billion or 22.24% to Rs 463.6 billion, enabled the Bank to improve its net interest income by 5.2% to Rs 27.222 billion, buttressing profit growth.

Interest expenses reduced to Rs 34.610 billion due to an improvement in the Bank's CASA ratio, as a result of its success in mobilising low cost funds.

Deposits increased by Rs 78.3 billion or 17.34% to Rs 529.4 billion over the year, at an average of Rs 6.5 billion per month, the Bank said in a filing with the Colombo Stock Exchange.

Gross Income improved marginally, due to the lower margins witnessed by the industry in 2014, to Rs 74.442 billion. The Bank's assets increased by 31.29% to Rs 795.6 billion.