Commercial Bank posts solid first half results

The continued momentum of its fund-based operations have generated strong growth for the Commercial Bank Group, its associates and subsidiaries to post exceptional pre and post tax profits for the first half of 2007.

The Commercial Bank Group has reported a pre-tax profit of Rs. 3,422 million for the six months ending June 30, 2007, a growth of Rs. 804 million or 30.72 per cent over the corresponding period in 2006, a statement from the banking group said.

The post-tax profit of the Group at Rs 2,173 million reflects a growth of 44.41 per cent over the first half of last year.

Commercial Bank’s Senior Deputy General Manager – Finance and Planning, Ranjith Samaranayake said the rate of post-tax profit growth was higher than the growth achieved in pre-tax profit primarily due to the Group’s tax liability increasing by just Rs 136 million (12.20 per cent over the first half of 2006) due to a reversal of Rs.246 million on account of the deferred tax provision in the first half of 2007.

He said the growth in pre-tax profit was facilitated by the Group’s net interest income increasing by Rs 2.0 billion or 58.00 per cent in the period under review, to total Rs 5.4 billion.