Bank of Ceylon says ‘best ever’ results for 2006

Bank of Ceylon this week reported what it called its ‘best ever results for the year ended 2006.’

Annual income rose by 32% from Rs. 26.78 billion in 2005 to Rs. 35.39 billion in 2006, more than double the corresponding increase of 14% in the previous year. Annual profit before VAT and income tax increased by 65% from Rs. 3.59 billion in 2005 to Rs. 5.93 billion in 2006, which is more than three times the corresponding increase of 18% in the previous year, according to a Bank statement.

The Bank’s assets grew by 19% from Rs. 319.16 billion in 2005 to Rs. 378.23 in 2006. The total contribution due to the government (comprising dividend, VAT and income tax) increased by 55% from Rs. 2.57 billion in 2005 to Rs. 3.99 billion in 2006.Bank of Ceylon’s subsidiary companies collectively show an increase in annual turnover (up to November) of 26% from Rs. 1.91 billion in 2005 to Rs. 2.40 billion in 2006.

Their profit after tax (up to November) show an increase of 13% from Rs. 0.39 billion in 2005 to Rs. 0.45 billion in 2006, and dividends from subsidiaries (up to November) show an increase of 98% from Rs. 0.13 billion in 2005 to 0.26 billion in 2006.

Bank of Ceylon’s foreign currency deposits grew by 20% from Rs 59.84 billion in 2005 to Rs 72.08 billion in 2006 as against zero growth in the previous year. Private sector lending increased by 33% from Rs. 75.3 billion in 2005 to Rs. 100.16 billion in 2006, which is more than two and a half times the corresponding increase of 13% in the previous year. Bank Chairman Udayasri Kariyawasam was quoted in the statement as saying at a press conference that ‘as the leading state bank in Sri Lanka, we have to balance profit making with our obligations to nurture national development. If not for this constraint, our profits would have been even higher.’

S.N.P. Palihena, General Manager of Bank of Ceylon said the Bank has taken the initiative and made a huge investment to link all its branches in all parts of the country into Sri Lanka’s biggest online branch network.

“We currently have more than 300 online service points and 185 ATMs located all over the country.

Through the country’s largest online branch network, we can now bring our world-class online facilities in core banking, fund management, and trade finance to large and small enterprises as well as individuals, both in urban and rural areas,” he added.

Bank of Ceylon is the largest bank in Sri Lanka, holding about 30% of the country’s banking assets worth over Rs. 375 billion. It is the No. 1 bank in Sri Lanka, ranked among the top 1,200 banks in the world.

The statement said that the Bank has the largest network of over 560 correspondent banks all over the world and preferred by Sri Lankans living abroad with a 66% market share in inward foreign currency remittances and a 38% market share in NRFC accounts.