Post tax profit of Rs 8 bln at Combank after pre-tax return of Rs 10 bln

The Commercial Bank of Ceylon PLC has reported a post-tax profit of Rs 8 billion in the year ending 31st December 2011 after pre-tax profits reached a new milestone of Rs 10.9 billion. In a statement it said income for the year was up 9.54 % to Rs 45.4 billion, with interest income growing to Rs 37.6 billion and non-interest income (foreign exchange and other income) growing by 16 % to Rs 6.59 billion.

"The total interest income growth was principally attributable to a healthy 21.59 % growth in Interest Income from Loans & Advances, which amounted to Rs 28.697 billion for the 12 months.

Interest Income from Other Interest Earning Assets such as Treasury Bills and Bonds totaled Rs 8.942 billion reflecting a decline of Rs 2.195 billion or 19.7%, due to the reduction in Bills and Bonds volume and the lower interest regime that prevailed in the review period," the statement said. Gross loans and advances grew by Rs 59.5 billion over the 12 months to Rs 287.9 billion while total performing loans and advances portfolio of the bank expanded by 27.5 % to Rs 272 billion.

Deposits stood at Rs 318.4 billion, up by 22.59% while this average growth was also close to Rs 5 billion per month. The Board of Directors has proposed a final dividend of Rs 3.50 per share, made up of Rs 1.50 in cash and Rs 2 in the form of a scrip dividend, taking total dividend per share for the year to Rs 6 Commercial Bank Managing Director Amitha Gooneratne, who is retiring in April, described the bank's performance as the result of solid all-round contributions from all core areas of banking.

"Our focus has always been on optimising the operational returns whilst maintaining a healthy balance in the deposit mix and prudent lending," he said. Assets of the bank grew by Rs 71 billion to Rs 441 billion. As a Group, the Commercial Bank, its subsidiaries and associates posted a pre-tax profit of Rs 11 billion and a post-tax profit of Rs 8 billion.