Commercial Bank ends 2017 strong, 41% of profit paid as taxes
View(s):The Commercial Bank of Ceylon PLC has posted profit before VAT and NBT of Rs. 28.064 billion for the year ending December 2017, a growth of 18.14 per cent.
Gross income increased by 24.10 per cent to Rs. 115.594 billion, boosted by interest income of Rs. 103.034 billion, up Rs. 22.296 billion or 27.62 per cent primarily due to a significant growth in the bank’s loan book over the 12 months.
In a media release, the bank said it paid approximately 41 per cent of its profit to the government as taxes in a year of volatility and headwinds, but posted typically robust growth in all key performance indicators to end 2017 on steadfast note.
Profit before income tax grew by 15.62 per cent to Rs. 23.183 billion while post-tax profit improved by 14.25 per cent to Rs. 16.581 billion.
Commenting on these results, Commercial Bank Chairman Dharma Dheerasinghe said these results demonstrate the bank’s capacity to further financial inclusion within Sri Lanka and grow beyond the country’s shores both regionally and internationally, if additional tax burdens are not imposed.
Total assets of the bank grew by Rs. 131 billion to Rs. 1.143 trillion as at 31st December 2017.
Net loans and receivables increased by Rs. 121.428 billion or 19.71 per cent over the 12 months of 2017 to stand at Rs 737.447 billion at the end of the year reviewed.
Operating income grew by 13.41 per cent to Rs. 50.016 billion in the 12 months reviewed. Shareholder funds grew by Rs. 28.746 billion consequent to the rights issue of shares.
At group level, Commercial Bank, its subsidiaries and associates saw profit after tax for the year grow by 14.93 per cent to Rs. 16.627 billion.