Commercial Bank has reported that profit before VAT and NBT grew by a healthy 22.09% to Rs 12.687 billion for the six months ending June 30, 2017, during which VAT and NBT paid by the Bank shot up by as much as 51.21% over the corresponding six months of 2016 primarily due to an increase in the VAT ratio.
Second quarter profit before tax was up 20.56% to Rs 5.203 billion, as a result of which the Bank’s PBT for the six months grew by 17.19% to Rs 10.425 billion, the Bank said.
Net profit improved by 16.21% to Rs 7.540 billion for the six months and by 15.70% to Rs 3.764 billion for the second quarter, the Bank said.
“There has been a perceptible further improvement across all key performance indicators, which is extremely pleasing given that margins have been narrowing over several quarters,” Commercial Bank Chairman Dharma Dheerasinghe said.
Commercial Bank Managing Director Jegan Durairatnam said: “We continued to improve our Current Account – Savings Account (CASA) volumes in absolute terms, cost – income and capital adequacy ratios in the second quarter through better operational performance and our increase in stated capital.”
Reflecting the higher volumes of business witnessed in the six months reviewed, Commercial Bank’s gross income grew by 28.84% or Rs 12.383 billion to Rs 55.319 billion at end June 2017.
Interest income improved by 30.69% to Rs 48.959 billion, while interest expenses grew by a significantly higher 45.84% to Rs 31.138 billion.
Net fee and commission income also recorded a healthy growth in the review period, increasing by 33.97% to Rs 3.977 billion.
Net operating income at Rs 22.467 billion for the six months and Rs 11.177 billion for the second quarter, reflected growths of 15.59% and 18.25% respectively.
Total assets of the Bank grew by Rs 72.918 billion or 7.20% over six months, from Rs 1.012 trillion as at 31st December 2016 to Rs 1.085 trillion at the end of the first half of 2017. The growth in assets over the 12 months since June 2016 was Rs 154.744 billion at an average of Rs 12.895 billion per month, reflecting YoY growth of 16.63%. Net loans and receivables from customers increased by a noteworthy Rs. 52.669 billion or Rs 8.778 billion per month since end 2016 to Rs 668.687 billion as at 30th June 2017, a growth of 8.55%.
One of the highlights of the Bank’s performance in the period reviewed was its achievement of a 39.40% reduction for the six months in impairment charges for loans and other losses, through the continuing improvement in the quality of its loans portfolio.
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