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| Sunday, 31 August 2003 |
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Business |  |
| News Business Features Editorial
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BoC records 34.2% growth in net interest income The Bank of Ceylon (BoC) has recorded a 34.2 per cent growth in net interest income for the first six months of 2003 over the corresponding period of 2002. The pre-tax profit is Rs. 1080 million (post-tax Rs. 912 million), an 8.2 per cent growth (post-tax 8.7 per cent) over the first six months of last year. Out of this profit, 76.45 per cent is from offshore banking. Term loans, performing overdrafts, treasury bills, treasury bonds and other bonds are the major income sources. Interest rates continued to fall during the period, reducing both interest income and interest expenses. Overall level of advances remained at last year's levels - a rapid growth in new advances made to the private sector offsetting a fall in government borrowings. The bank's treasury bill profile grew 113.8 per cent and investment securities, 15.9 per cent. BoC was successful in deposit mobilisation. Overall growth of total deposits reached 9.3 per cent. Low cost domestic deposits grew 18.9 per cent and domestic savings growth exceeded 10 per cent. Bank borrowings have come down by 63.5 per cent. The bank's restructuring activities continue. A model branch has been developed at Union Place and restructuring has commenced at the head office, corporate and offshore banking and at provincial offices. An extension office was opened recently at the Meegoda Economic Centre and two more branches will come up at Malabe and Narahenpita. To extend real-time online integrated banking services with a range of modern facilities and functions, the bank expects to invest over $10 million in IT over the next three years. The bank has engaged MTI consultants, a Bahrain-based international consultancy firm to develop a strategic plan. The bank anticipates a year-end profit in the region of two billion rupees. |
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