Sunday Observer Online


News Bar Ľ

News: TMVP releases child soldiers, does not carry guns in public - UN ...           Political: PC Polls smooth: UNP in desperation ...          Finanacial News: Rs. 3.5 m investment to woo more Gulf travellers ...          Sports: A great trier Kaushalya won Observer Schoolboy Cricketer award in 2000 ...

DateLine Sunday, 11 May 2008





Marriage Proposals
Government Gazette

ComBankís pre-tax profit tops Rs. 1.7 b in 1Q, 2008

A healthy growth in net interest income in the first quarter of 2008 has enabled the Commercial Bank Group to weather anticipated tougher market conditions and maintain growth momentum, Sri Lankaís benchmark private sector bank said.

The Group comprising Commercial Bank of Ceylon Plc, its associates and subsidiaries has reported a pre tax profit of Rs. 1,794.1 million for the three months ended March 31, 2008, a growth of 13.7 per cent over the first quarter of 2007.

Post tax profit for the quarter, at Rs. 1,025.2 million was up by 11.4 per cent.

The Bank said tax on profit on ordinary activities of Rs. 548.6 million published in the first quarter results of last year, has been re-stated as Rs. 657.9 million in the comparative column of the Income Statement of 2007.

This was due to reversal of a deferred tax asset recognised on statutory general provisions made as per the new provisioning requirements of the Central Bank of Sri Lanka in the first quarter of 2007, which was subsequently reversed in preparing the Annual Report of the Bank in 2007.

If the restatement of the tax on profit on ordinary activities was not effected, the profit after tax for the first quarter of 2007 would have been Rs. 1,029.2 million.

The Groupís growth was achieved amidst certain sector-specific provisioning for bad and doubtful debts, a 64.0 per cent increase in general provisioning on performing and overdue loans and advances as stipulated by provisioning requirements of the Central Bank of Sri Lanka and a near 40 per cent increase in VAT on Financial Services in the quarter under review.

Non-interest expenses of the Group recorded an increase of Rs. 265.9 million or 18.37 per cent over the corresponding quarter of 2007.

The increase in VAT on Financial Services alone amounted to Rs. 143.5 million, of which Rs. 84.1 million was consequent to the adoption of a revised method of computation, Commercial Bankís Chief Financial Officer Nandika Buddhipala said.

Discounting the effect of the latter, the growth of Group profit after tax would have been 20.5 per cent, which could be considered noteworthy in the context of the conditions under which it was achieved, he added.

On the positive side, principal contributors to the Groupís bottom line in the quarter reviewed included a 23.0 per cent growth in Net Interest Income from Rs. 2.43 billion in the first quarter of 2007 to Rs. 2.99 billion. Other Income grew by 20.6 per cent to Rs. 774.7 million mainly due to growth in fee based income of the Bank while Exchange Income was up 38 per cent to Rs. 526 million mainly due to higher gains realised from forward foreign exchange deals carried out in 2008.

Total deposits of the Group, which stood at Rs. 183.1 billion as at December 31, 2007, rose to Rs. 186.1 billion as at March 31, 2008 recording a growth of 1.64 per cent.

The total gross loans and advances of the Group rose to Rs. 185.2 billion as at March 31, 2008 from Rs. 181.1 billion as at December 31, 2007 recording a growth of 2.3 per cent.


Gamin Gamata - Presidential Community & Welfare Service
Ceylinco Banyan Villas

| News | Editorial | Financial | Features | Political | Security | Spectrum | Impact | Sports | World | Plus | Magazine | Junior | Letters | Obituaries |


Produced by Lake House Copyright © 2007 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor