BoC records 25% growth

The Bank of Ceylon (BoC) ended 2015 with the highest ever profit of Rs.25.3 billion, made by a single commercial entity in the country. This is a 25% growth over the previous year. Post tax profit at Rs. 16.1 billion recorded 19% growth over end 2014. The BoC Group recorded Rs. 25.5 billion pre-tax profit achieving a 19% increase over the previous year while post tax profit was Rs. 16.2 billion with a 13% increase over 2014. The Group companies contribute 3% to the Group's total assets.

Interest income the main source of income of the Bank increased by 6% during 2015 while interest expense decreased by 4% resulting in a favorable net interest income with 23% growth. Improved net interest income demonstrates the Bank's capacity to leverage the mobilization of low cost fund bases into a dynamic loan portfolio. BoC's CASA (Current and savings accounts to total deposits) mix has improved further during 2015 from 43.2% to 46.5% resulting in a lower cost of funds. The significant growth in other operating income was mainly through increased exchange income arising from rupee depreciation against the US dollar. However, increase in other operating income was impacted by the decline in income from financial investments due to a slowdown in the capital market.

Despite the increase in operating cost by 15%, the cost to income ratio has come down to 43.6% from 44.0% enabling the Bank to stay below the industry average while signifying the robustness of the bank's cost management practices.

The Bank achieved yet another target during the year by reporting a Rs. 1.1 trillion deposit base derived through an 11 million-customer base. This is a 16% growth over the previous year. With this the Bank notched the two- trillions target for Assets and Deposits.

Truly a Banker to the Nation - Enhancing Technologically up to date Accessibility

Our 625 service points of branches and other access points, together with 549 ATM and 19 CDM touch points and a presence in common ATM switches, enabling more than 2000 touch points supported by a technology driven transformation process carried out throughout the year contributed to the Bank's achievements.

BoC has maintained all its Key Performance Indicators (KPIs) in line with the expected levels .The Bank's Return on Average Assets (ROAA) ratio stood at 1.8% and Return on Average Equity (ROAE) ratio stood at 20.7% with a marginal increase over the previous year. The Bank strived to maintain a better trade-off between liquidity and interest earning assets by maintaining a domestic liquid asset ratio of 28.2% and an off-shore liquid asset ratio of 37.6% as of end 2015, standing well above the Central Bank's required benchmark of 20%. Capital Adequacy Ratio (CAR) which is a key regulatory ratio for banks has been maintained above the regulatory levels. Prior to incorporating the current year profit, the Tier I capital ratio stood at 7.8% and Tier II at 11.8%.

"The Bank's contribution to the Government by way of dividend and taxes amounted to Rs. 18.0 billion. As a State Owned Bank and as the giant in the banking industry we have being contributing to the country's development since our inception. We have funded many Government projects by delivering our fullest support to uplift our county in all aspects. Apart from providing finance base to deliver the Government mandates, BoC plays a major role in financial inclusion in the society by way of micro finance developments, financial entrepreneur development programmes for Small and Medium Enterprises (SMEs), school savings units, etc through 625 branch network well spread over the island," said Chairman, Ronald C. Perera.