BoC starts year with Rs.4.4 billion PBT for 1Q 2015
View(s):Bank of Ceylon (BoC) has reported Rs. 4.4 billion Profit before Tax (PBT) for 1Q 2015 by achieving a 15 per cent growth over 1Q of the previous year, a BoC media statement said.
Profit after Tax (PAT) stood at Rs.3 billion resulting 15 per cent growth.
“The group reported Rs.4.3 billion PBT resulting in a 10 per cent growth over the corresponding period of the previous year and the bank dominates the results of the group accounting for 96 per cent of earnings and 97 per cent of the group’s assets,” the statement said. It said that PBT has mainly accelerated due to increased net interest income and fee income. “The bank has been able to achieve lower interest expenses through improved CASA mix (Current Account and Savings Account to total deposits) resulting in a 34 per cent increase in net interest income over 1Q 2014.Net fee and commission income have also increased by 25 per cent to Rs. 2.1 billion contributing 14 per cent to total operating income.”
Impairment charge on loans and advances has increased by 17 per cent to Rs.3.9 billion mainly due to increase in individual impairment compared to that of the corresponding period of 2014. “Collective impairment provision showed a marginal increase of 6 per cent reflecting quality of the portfolio and prudential methods adopted in credit management.”
Preserving its position as the first domestic bank to achieve a trillion assets Balance Sheet the bank’s assets grew by 5 per cent to Rs.1.4 trillion as of end March 2015. Loans and advances accounted for 58 per cent of the bank’s assets base and gross loans stood at Rs.845.5 billion as at end 1Q 2015 and showed a marginal growth of 9 per cent recovering from the slower credit growth that prevailed during last year. Deposits accounted for 70 per cent of the bank’s liabilities as at the end of 1Q 2015 and showed a slight decrease compared to end 2014.
The statement said that as at end of 1Q 2015 the bank’s Return on Average Assets (ROAA) ratio stood at 1.3 per cent and Return on Average Equity (ROAE) ratio stood at 15.7 per cent indicating slight dip compared to end 2014 mainly due to increased assets base and the Rs. 5 billion capital infusion made in December 2014. Meanwhile cost to income ratio showed an improvement from 42 per cent to 39 per cent in line with the improved operational efficiencies.