BoC reports Rs. 8.6 bln PBT during 1H 2014
View(s):Bank of Ceylon (BoC) has posted Rs.8.6 billion in pre-tax profit for the 1H 2014, up 20 per cent from 1H 2013 (Rs. 7.2 billion), the 75-year old state bank said this week.
After tax profit was Rs. 6.2 billion, up 23 per cent from the the previous year. “Despite the significant interest rate pressures and slowdown in credit growth which is common to the industry during the period under concern, the bank was able to cope with the declining interest margins through upward trends in fee based income, investment income, and the reduction of impairment charges on non-performing assets,” it said in a media statement.
Increase in income generated from issuing guarantees and bills acceptance contributed to the increase in fee income by Rs.1.3 billion resulting in a 49 per cent growth year on year (YoY).
Bank assets grew by 5 per cent to Rs.1.3 trillion continuing its position as the only domestic bank having a trillion assets balance sheet.
Net loans and advances stood at Rs. 698 billion. “BoC is not an entirely profit oriented entity and has taken drastic action from time to time to help the national economy. Pawning rates have been reduced substantially in order to stimulate credit growth in the country, thereby discharging its role as a national bank,” the statement said.
Deposits accounted for 74 per cent of the bank’s liabilities as at end of 1H 2014. The BoC is the market leader for deposits with a share of 20 per cent.
The total customer deposit base grew from Rs. 842 billion in December 2013 to Rs.876 billion at the end of June 2014.