Bank of Ceylon records highest ever profit of over Rs. 25 bln in 2015
View(s):Bank of Ceylon (BoC) said this week that it closed the 2015 financial year by recording the highest ever profit of Rs.25.3 billion, made by a single commercial entity in the country. This is a 25 per cent growth over the previous year. Post tax profit at Rs. 16.1 billion was up 19 per cent over end 2014. The BoC Group recorded Rs. 25.5 billion pre-tax profit while post tax profit was Rs. 16.2 billion. Group companies contribute 3 per cent to the group’s total assets. In a media statement, the bank said interest income was its main source rising by 6 per cent over 2014. Interest expenses fell by 4 per cent resulting in a favourable net interest income with 23 per cent growth.
“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,” it said. The bank achieved 8 per cent growth in assets to Rs. 1.6 trillion. The loan portfolio, main contributor to the asset base, rose by Rs. 92.5 billion during the year complimented by the growth in term loans, personal loans, loans under scheme and leasing. “The bank’s contribution to the Government by way of dividend and taxes amounted to Rs. 18 billion.
We have funded many Government projects by delivering our fullest support to uplift our county in all aspects, said BOC Chairman Ronald C. Perera, PC. In compliance with the Sri Lanka Financial Reporting Standards (SLFRSs) and Sri Lanka Accounting Standards (SLASs), the bank made an Rs.43.7 billion impairment provision as of end 2015. “The reported profit of over Rs. 25 billion, has thus been subjected to all forms of prudential provisioning, accounting, recording, and disclosure,” it said.
Commenting on the bank staff, BOC General Manager D.M. Gunasekera said, “Our winning team comprises of an experienced, qualified, seasoned and dynamic team, who provide the bank with a competitive edge in the industry. We are operating in a highly techno driven rapidly changing environment. Human needs and motives are changing drastically and BoC has already taken steps to serve these changes and direct the ship towards the correct destination.”
Director and Chairman of the Audit Committee Ranel Wijesinha said he was delighted with the performance of the Bank in 2015 and its staff, adding: “As independent, non-executive directors, we must help protect their space while contributing selflessly to improving what we can. We bring to bear our private sector experience, to help strategy and profitability, driven by accountability and overall governance”.