ComBank reaches 3rd Rs 1 Trillion mark in strong Q2 2020
View(s):A strong second quarter, during which its loan book crossed the milestone of Rs. 1 trillion has generated commendable growth in key indicators for the Commercial Bank of Ceylon Group for the six months ended 30th June 2021, the bank said in a media release.
The group reported gross income of Rs. 79.931 billion for the period, reflecting a growth of 6.34 percent over the corresponding six months of 2020 and an improvement of 11.23 percent in the second quarter of 2021.
The group converted the first quarter’s negative growth of 2 percent in interest income to an improvement of 9 percent in the second quarter, to end the first half of 2021 with interest income of Rs. 63.355 billion, which was an increase of 3.2 percent over the first half of last year.
“An increase in operating income from the growth in lending, an improvement in net fees and commission income and significant gains in some of the components of other income was partly offset by a substantial growth in impairment charges in the six months reviewed, but we are pleased with the overall results because we have built on the momentum of the first quarter and improved many of the core ratios and key performance indicators,” said Commercial Bank Chairman Justice K. Sripavan.
Commercial Bank Managing Director S. Renganathan noted that the bank’s CASA ratio had improved to 45.37 percent from 42.72 percent at the end of 2020 and 40.79 percent at end June 2020. “We have also sustained steady improvements in capital adequacy ratios, non-performing loan ratios, provision cover and interest margins while grappling with the challenges posed by the global pandemic. We believe we now have a blueprint for achieving well-balanced growth in adverse conditions that will be of value in the years ahead.”
The group posted profit after tax of Rs. 12.354 billion for the six months recording a growth of 65.87 percent, with growth in the second quarter alone amounting to 52.93 percent. Taken separately, Commercial Bank of Ceylon reported profit before tax of Rs. 15.420 billion for the period, a growth of 47.61 percent and profit after tax of Rs. 12.134 billion, an improvement of 74.31 percent, the release said.