BOC pre-tax profit up by 66% in 3Q-2024
View(s):In the first nine months of 2024, Bank of Ceylon achieved a Profit Before Tax (PBT) of Rs.37.6 billion, a substantial 66 per cent increase over the same period in the previous year.
General Manager / CEO Russel Fonseka was quoted in a bank press release saying, “Our robust financial results are a testament to the strength and stability we’ve demonstrated in this challenging economic climate.” The Bank successfully repriced its assets and liabilities, leading to a significant 85 per cent increase in net interest income to Rs.94.5 billion compared to Rs.51.2 billion in the same period of 2023. This growth underscores the bank’s improved profitability, despite the challenging economic environment.
While interest income rose to Rs.320.2 billion, interest expenses also increased to Rs.225.7 billion. This strategic decision to offer competitive deposit rates was essential to retain and grow the bank’s deposit base.
Net fee and commission income remained a strong contributor, reaching Rs.15.1 billion, 17 per cent YoY increase from Rs.12.9 billion in the corresponding period of 2023. This growth was primarily driven by increased card-related transactions, retail banking services, and the rising adoption of digital banking channels.
Impairment charges amounted to Rs.5.8 billion for loans and advances and Rs.7.5 billion for other financial assets, reflecting challenges faced by sectors still recovering from economic downturns and global disruptions. Despite these provisions, the bank’s stringent credit monitoring and the relative stabilisation of the Sri Lankan Rupee contributed to maintaining a solid financial standing. However, the impaired loans (Stage 3) ratio increased to 5.80 per cent, indicating potential external economic pressures.
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