Bank of Ceylon records Rs.9.3bn PBT for 1Q 2024

During the first quarter of 2024, Bank of Ceylon (BOC) achieved a profit before tax (PBT) of Rs.9.3 billion, a substantial increase compared to the previous year.
The bank’s interest income for the quarter reached Rs.108.6 billion, making a significant contribution to its total income, even though reflected a reduction of 21 percent year-on-year (YoY), in line with the low interest regime. Similarly, the interest expenses also decreased to Rs.82.7 billion, with a 31 percent reduction, resulting in a net interest income of Rs.25.9 billion, with a 39 percent growth YoY.  

The net fee and commission income remained robust at Rs.4.9 billion, with a 11 percent growth, reflecting continued growth in card transactions and remittance services. 
The bank managed its Stage 3 loan ratio at 5.51 percent, as of the end of 1Q 2024. During the quarter, an impairment provision of Rs.2.7 billion was allocated for loans and advances, maintaining a provision coverage of 60 percent for Stage 3 loans.  The total operating income reached Rs.30.4 billion. With an impairment provision of Rs.3.2 billion and operating expenses of Rs.14.6 billion, the operating profit before taxes on financial services amounted to Rs.12.5 billion, marking a notable improvement of 143 percent compared to the previous year. The PBT of Rs.9.3 billion was reported after charging the Value Added Tax and Social Security Contribution Levy by reporting a 180 percent growth. Furthermore, the income tax expenses, totalling Rs.4.3 billion, were accounted for the quarter, resulting in a profit after tax of Rs.5.1 billion. BOC’s total assets and total deposits amounted to Rs.4.3 trillion and Rs.3.7 trillion, respectively. Net loans and advances amounted to Rs.2.1 trillion and total investments amounted to Rs.1.9 trillion. 
“During the period under review, LKR appreciated by 7 percent. In line with that, foreign currency assets and liabilities came down in LKR terms, which was the main reason for reporting a contraction in assets book by end-March 2024,” BOC said in its statement.
The bank achieved a return on assets ratio of 0.86 percent and reported a return on equity ratio of 8.02 percent. Notably, the bank ensured compliance with the regulatory capital requirements, maintaining a Tier I capital adequacy ratio of 12.41 percent and a total capital adequacy ratio of 15.41 percent. The liquidity ratios improved, reflecting positive market conditions during the period under review.