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Sri Lanka’s Bank of Ceylon records Rs. 30.3 bn Profit Before Tax in 2017

State-owned Bank of Ceylon (BoC), having completed 78 successful years, has now closed 2017 with another spearheading record of Rs. 30.3 billion Profit Before Tax (PBT).

The Bank has recorded an impressive 8 percent growth in PBT, when adjusted for the one off gain recorded in 2016 (ie: disposal of Mireka Capital Lanka (Pvt) Ltd). With this, BoC continues to maintain its position as the highest profit earning single entity of the country. Profit after tax for the year stood at Rs. 21.3 billion, General Manager Senarath Bandara stated.

The total operating income has grown by 3 percent within the year notching Rs. 74.3 billion mark. Net interest income has contributed to 78 percent of the total operating income and the ‘YoY’ growth of the net interest income has been 8 percent. In March 2017 Standing Deposit Facility Ratio (SDFR) and Standing Lending Facility Ratio (SLFR) was increased by 25 bps up to 7.25 percent and 8.75 percent respectively. Followed by the change in policy rates, the market interest rates moved further upward and the high interest rate regime which prevailed throughout the year except for the latter part of the year in which interest rates recorded a slight slowdown. Whilst, the increasing trend in market interest rates has resulted in an increase in both interest income and expenses, the net interest margin of the Bank has only shedded by 10 bsp over the previous year due to its effective management of cost of funding. Interest income earned through investment activities particularly in Treasury Bills and Treasury Bonds also contributed towards the growth in the net interest income.

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