The Commercial Bank of Ceylon PLC has reported profit before income tax (PBT) of Rs 20.051 billion for 2016, marking the end of a spectacular year in which it made history as the first private bank in Sri Lanka to surpass a trillion rupees in assets.
Profit before value added tax (VAT) grew by 18.58% to Rs 23.755 billion, the Bank said, disclosing that an increase in the financial VAT rate from 11% to 15% for four of the 12 months reviewed had resulted in the Bank’s VAT expense for the full year increasing by 28.17% to Rs 3.703 billion.
The 16.96% growth achieved in PBT was bettered by the growth in profit after tax, which improved by 21.92% to Rs. 14.513 billion during the year ending December 31, 2016, the bank said in a filing with the Colombo Stock Exchange.
The Bank paid Rs 9.385 billion in taxes in respect of the year reviewed, an increase of 15.78% even after discounting the Rs. 2.570 billion paid in 2015 as Super Gains Tax. Gross income of the Bank improved by Rs. 15.275 billion or 19.62%.
Net interest income for the year at Rs. 32.824 billion reflected an increase of 8.17%.
One of the significant highlights of the year reviewed was the growth of the Bank’s asset base by Rs 132.396 billion or 15.05% to reach Rs 1,012.2 billion (Rs 1.012 trillion).
Gross loans grew by Rs. 107.224 billion or 20.38%. In other key financial indicators, the Bank’s total operating income of Rs. 44.101 billion represented an increase of Rs 2.819 billion or 6.83%.
Net operating income grew by 14.01% or Rs 5.232 billion to Rs 42.571 billion. Total operating expenditure increased by 8.73% to Rs 18.816 billion. The increase in net profit to Rs 14.513 billion helped the Bank achieve a higher Return of Assets (ROA) of 1.53% and Return of Equity (ROE) of 19.52%.
At Group level, Commercial Bank, its subsidiaries and associates reported profit before income tax of Rs 20.115 billion.