ComBank posts 6-month pre-tax profit of Rs 6.5 bln
View(s):Pre and post-tax profits of the Commercial Bank of Ceylon fell in the first half of this year even though income reported a growth from the previous 2012 period, the results show.
While gross income and interest income at the end of its second quarter showed a growth of 12.10 per cent and 22.58 per cent, respectively through strong operational growth in the six months ended 30th June 2013, pre-tax profit and post-tax profit for the first half of 2013 fell to Rs. 6.5 billion and Rs 4.5 billion against Rs. 7.5 billion and Rs 5.2 billion, respectively for the corresponding period of last year.
“During this period translation gains on foreign exchange earnings were a major contributor to profits. In contrast, during the first half of 2013, foreign exchange income was adversely affected by mark to market losses on swaps relating to the overseas funding raised by the bank in the recent past,” according to a media statement issued by the bank.
Despite the lower demand for credit experienced by the industry, total loans and advances of the bank grew by 4.44 per cent from Rs. 373.5 billion at 31st December 2012 to Rs 390.1 billion at the end of the half year.
Commercial Bank Chairman Dinesh Weerakkody said: “Operationally, we have much to be pleased about. We have maintained the momentum of deposit mobilisation and credit growth while improving capital adequacy and other ratios at a time when the banking industry in general experienced narrowing margins.”
Total expenses including personnel costs, depreciation, amortisation and other expenses for the six months was Rs. 7 billion, reflecting a marginal increase of 5.74 per cent. “The focus on process improvement initiatives and cost containment helped the bank to manage expenses amidst escalating costs,” said Commercial Bank Managing Director/CEO Ravi Dias.
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