The Bank of Ceylon (BoC) commemorated its 75th anniversary achieving Rs. 8.6 billion Profit before Tax (PBT) during the first half of 2014, a highest in the banking sector. This is a 20% growth corresponding to the first half of 2013(Rs. 7.2 billion). In its 75 year history BoC has served all sectors of the country while preserving the number one position in advances, deposits, assets, and profit and inward remittances as Sri Lanka’s imperative financial institution.

The bank has reported an after tax profit of Rs. 6.2 billion for the first half of 2014 which is a 23% growth over 1H of the previous year.

Despite the significant interest rate pressures and slowdown in credit growth which is common to the industry during the period under concern, the Bank was able to cope with the declining interest margins through upward trends in fee based income, investment income, and the reduction of impairment charges on non-performing assets. Increase in income generated from issuing guarantees and bills acceptance has contributed to the increase in fee income by Rs.1.3 billion resulting in a 49% growth year on year (YoY).

Simultaneously net gain from trading of investment securities has also contributed Rs.2.4 billion to the income showing 54% growth YoY and this fact shows the resilience of the Bank in finding alternative income sources in challenging times. Meanwhile interest expense has come down by 5% to Rs.36 billion due to the improvement of current and savings accounts (CASA) ratio along with the repricing of term deposits at lower interest rates.

The Bank’s assets grew by 5% to Rs.1.3 trillion continuing its position as the only domestic bank having a trillion assets balance sheet. The growth of the assets was mainly due to the increase of the fund base and financial investments. Even though, asset growth is at a moderate level, it is on par with the industry trends and BoC continues to secure its market leadership in terms of advances, deposits and profit.

Bank of Ceylon is the largest provider of capital to both the private and public sector, accounting for 21% of the banking industry’s total loans and advances. Gross loans and advances to customers represent 60% of total assets of the Bank.