BoC records Rs 13.6b PAT

Bank of Ceylon (BoC) closed its 75th year recording a profit before tax (PBT) of Rs.20.3 billion, the highest ever in its history, a growth of 29% compared to the previous year.

Post tax profit stood at Rs. 13.6 billion, a 12% growth. The Group reported Rs. 21.4 billion PBT, a 33% growth over last year with the Bank dominating the results of the Group accounting for 95% of earnings and 97% of the Group’s assets.

Despite the dip in interest margin due to the low interest rate regime, PBT was boosted by fee income, trading income and gains from financial investments. Fee income increased by 42% to Rs. 9.2 billion due mainly to the increase in export and import transactions and guarantee fees.

Net gains from trading in Treasury Bills and dealing securities grew by 50% to Rs. 4.9 billion. Bank’s assets grew by 11% to Rs.1.3 trillion.

The bank is the first domestic bank to achieve over Rs. 1 trillion in assets in the balance sheet.

BoC is the largest provider of finance to the Government and private sectors. Loans and advances account for 56% of the Bank’s one trillion asset base and gross loans stood at Rs.777.5 billion as at end 2014.

BoC continues to secure its market leadership in terms of assets, advances, deposits, profits, NRFC deposits and inward remittances.

Deposits account for 74% of the Bank’s liabilities as at the end of 2014. The customer deposit base has grown from Rs. 842.1billion in December 2013 to Rs. 934 billion as at end of 2014 amidst interest rate margin pressure.

This is a 11% growth and is in line with the industry growth rate which reflects the strong domestic franchise of the Bank. The CASA ratio has improved to 43% from 38% resulting in a favourable deposit mix.

“It is evident that the bank made strong progress on all fronts to make the highest ever profit by a single entity in Sri Lanka.

We are in a transformation process which is gradually taking us to the position as a provider of full-fledged digital banking to deliver to customers, best-in-class banking services with a novel experience," said Chairman, Bank of Ceylon, Ronald C. Perera.

"Our earnings benefit the nation directly as a dividend of Rs. 16.5 billion will be paid to the Government,” he said.