COMBank profit after tax up 39% to Rs. 3.28 b in 3Q, 2007

A characteristically robust performance in the third quarter of the current year has enabled the Commercial Bank Group to post noteworthy improvements in all key indicators and achieve strong profit growth for the nine months ending September 30, 2007.

In results released to the Colombo Stock Exchange this week, the Group comprising Sri Lanka's benchmark private sector bank, associates and subsidiaries has reported pre-tax profit of Rs. 5.32 billion at the end of the third quarter, a growth of Rs. 1.3 billion or 32.43 percent over the first nine months of last year.

Profit after tax for the period, at Rs. 3.28 billion reflected an even stronger growth of 39.35 percent or Rs. 925.6 million, on a Group turnover of Rs. 25.5 billion, which was up Rs. 8.5 billion or 50 percent.

On the basis of these results, the Board of Directors of the Bank have declared a second interim dividend of Rs. 1.50 per share, which will be paid by the end of this month. Earlier this year, the Bank declared a dividend of Rs. 1.50 per share.

According to Ranjith Samaranayake, Commercial Bank's Senior Deputy General Manager - Finance and Planning, profit growth was facilitated by an increase of Rs. 3.10 billion or 57.24 percent in the Group's net interest income from Rs. 5.42 billion to Rs. 8.53 billion in the period under review.

This was achieved with better management of interest margins in volatile market conditions, and adequate balance sheet growth in this period, he said.

Total assets of the Group rose to Rs. 258.7 billion as at September 30, 2007, a growth of Rs. 34.7 billion or 15.5 percent over the figure of Rs. 223.9 billion at December 31, 2006.

This substantial growth was made possible by total deposits of the Group growing by Rs. 16.9 billion (10.7 percent) in the first nine months of the year and a rights issue which raised an additional Rs. 5.7 billion.