The Commercial Bank Group has ended 2021 with gross income of Rs 163.675 billion, an improvement of 7.70%, with interest income accounting for over 80% of the top line in a year of mixed fortunes.
The Group, comprising the Commercial Bank of Ceylon PLC its subsidiaries and the associate, reported interest income of Rs 132.818 billion for the year ended December 31, 2021, reflecting a growth of 7.04%. With interest expenses for the year reducing by 9.31% to Rs 66.402 billion, the Group achieved net interest income of Rs 66.416 billion, an increase of 30.56%.
Total operating income for the year grew by 21.98% to Rs 93.598 billion, and the Group’s impairment charges and other losses increased by 17.37% to Rs. 25.140 billion.
Net operating income for the full year improved by 23.77% to Rs 68.458 billion, but grew by a comparatively lower rate of 7.89% to Rs 17.504 billion due to the higher impairment charges provided in the fourth quarter, the Bank stated.
Operating profit before VAT on Financial Services grew by a noteworthy 33.58% to Rs 38.801 billion and the Group’s VAT on Financial Services for the year increased by 28.99% to Rs 5.845 billion, while profit before income tax for the year improved by 34.41% to Rs 32.957 billion. With income tax charges increasing at a relatively lower rate of 16.60% to Rs 8.667 billion due to the reduction in the income tax rate, the Group posted a profit after tax of Rs 24.290 billion for the year, achieving a growth of 42.16% before providing for the proposed Surcharge Tax, which had not been enacted in Parliament at the time of reporting. It has therefore not been provided for in the year reviewed.
Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs 32.001 billion, achieving a growth of 36.11% and profit after tax of Rs 23.606 billion, recording an improvement of 44.17%.
Total assets of the Group grew by Rs 221 billion or 12.54% over the year to reach Rs 1.983 trillion as at December 31, 2021. Gross loans and advances of the Group increased by Rs. 133 billion or 13.83% to Rs 1.095 trillion.
Total deposits of the Group recorded an improvement of Rs 186 billion or 14.46% in the 12 months reviewed.
The Bank’s basic earnings per share improved by 33.49% from Rs 14.81 to Rs 19.77, while its net assets value per share increased to Rs 138.08 from Rs 134.67 as at end 2020.
The Bank’s Tier 1 Capital Adequacy Ratio (CAR) stood at 11.923% as at December 31, 2021, and its Total Capital Ratio stood at 15.650%.
The Bank’s gross non-performing loans (NPL) ratio improved to 4.62% from 5.11% at end 2020, while its net NPL ratio improved to 1.44% from 2.18% as at December 31, 2020.