Business
Bank of Ceylon reports Rs. 40.3 billion profit in 2023
Bank of Ceylon (BOC) reported a Profit Before Tax (PBT) of Rs. 40.3 billion for the year ended 31st December 2023 demonstrating a strong and steady performance across various dimensions, including liquidity, capital, efficiency, profitability and asset quality despite prevailing global and local economic uncertainties.
In a competitive and challenging environment the bank was able to achieve its goals by having a professional and experienced team, which helped to turnaround under-performing business sectors, back into their operations generating profits through the business revival and rehabilitation strategies . This achievement showcases the Bank’s resilience and ability to navigate through challenging times while delivering positive financial results consistently by following the best practices in the banking industry and adopting in to novel technology
The Bank of Ceylon Chairman and President’s Counsel, Ronald C Perera stated that, “The Bank has successfully navigated all the headwinds during past few years and the immediate measures were taken strategically and ensured the Business Continuity and uninterrupted services to our valuable stakeholders. Managing the foreign currency shortage was a challenging task, particularly as being “Bankers to the Nation” we always act with a broader vision. We identified the criticality of uninterrupted energy supply for survival of the economy and social life. In this backdrop the Bank took all its efforts to facilitate foreign currency needs for importing energy and essential goods. Nevertheless, short-term strategies were carefully managed without compromising the Bank’s long-term strategic priorities, with a focus on strengthening the financial position”.
Fund Based & Non- Fund Based Income The Bank achieved a profit before tax of Rs. 40.3 billion, driven by a significant 15% increase in interest income. However, despite this growth, a sharp rise in interest expenses resulted due to lag effect in repricing the time deposits mobilized at higher rates. Accordingly, net interest income decreased by 28% YoY. Moreover, net fee and commission income experienced a growth of 8%, primarily due to increase in card transactions, improved remittance, and greater adoption of digital banking services in retail banking. The Bank experienced approximately a 49% increase in worker remittances, accompanied by a rise in the number of remittances.
Impairment Reversal for Loans and Advances and Other Financial Instruments
From the emerging of the economic turmoil the Bank implemented proactive measures to mitigate the credit risk by applying management overlays to identify risk-elevated industries, reassessing exposures to high-risk borrowers and implementing stringent monitoring mechanisms. Under Expected Credit Loss model the Bank provided considerable level of impairment provision in previous years and by beginning of the year 2023, the Bank had maintained provision coverage of 60% for stage 3 loans. As a testament to these efforts, the Bank witnessed a noteworthy net reversal of impairment provisions for loans and advances amounting to Rs. 2.7 billion during the year. This positive outcome was attributed to the synergy of various factors, including robust business revival activities, rigorous credit monitoring practice, and the favorable appreciation of the LKR against USD. (BOC)
The Commercial Bank of Ceylon has transformed its iconic ‘Foreign Branch’ into the ‘Corporate Branch,’ reaffirming its commitment to delivering dedicated, comprehensive financial solutions to corporate and trade customers.
The Bank said this transformation represents a new milestone in its illustrious journey, and resonates with the rich commercial heritage of Colombo, a city that has long served as a vital trading hub in the region.
Strategically located at the Bank’s Head Office at Commercial House, 21, Sir Razeek Fareed Mawatha (Bristol Street), Colombo 1, this rebranded Corporate Branch stands as a first of its kind in Sri Lanka —a premier financial hub tailored exclusively to the needs of corporate customers, the Bank said. The transformation aligns with the Bank’s vision of providing unparalleled service excellence, bespoke financial solutions, and fostering long-term business partnerships.
Commenting on this strategic initiative, Commercial Bank’s Managing Director/CEO Sanath Manatunge stated: “It is our aspiration that just as the historic Delft Gateway, at which our Head Office is located, once opened the path to the Dutch Fort, our Corporate Branch will chart a new era of enduring and prosperous business collaborations, that will extend beyond Sri Lanka’s shores.”
Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.
At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide. Renowned for consistently delivering café-quality espresso, cappuccino, and even specialty cold brews, DeLonghi machines exemplify Italian innovation at its finest.
Yasas Kodituwakku, CEO of Fits Retail, expressed excitement about the collaboration: “This partnership represents our unwavering commitment to bringing global coffee excellence to Sri Lankan connoisseurs. With Abans PLC, we’re creating more than just demonstration spaces; we’re curating premium destinations for an authentic coffee experience.”
“As pioneers of premium lifestyle experiences in Sri Lanka, our collaboration with Fits Retail aligns seamlessly with our vision of elevating everyday moments into exceptional experiences,” said Tanaz Pestonjee, Director Business Development at Abans PLC.
Business
Members’ Night of the Sri Lanka – Russia Business Council of The Ceylon Chamber of Commerce
The Sri Lanka-Russia Business Council (SLRBC) of The Ceylon Chamber of Commerce (CCC) hosted a Members’ Night on March 27, at the Sophia Colombo City Hotel. The event, attended by His Excellency Levan S. Dzhagaryan, Ambassador of Russia to Sri Lanka, offered a valuable platform for business leaders, embassy officials, and Members to discuss and explore opportunities for deeper Sri Lanka-Russia collaboration, a CCC news release said.
SLRBC President, Mr. Jude Fernando, kicked off the evening with a speech highlighting the importance of strengthening international ties, which was followed by H.E. Dzhagaryan’s address on the need for continued engagement between the two countries. The event featured networking opportunities, allowing Members to connect with key stakeholders and discuss future business ventures, followed by a delightful dinner.
The event was made possible with the generous support of sponsors, including OCEAN 7 Logistics (Pvt) Ltd, Bally/Walkers Tours, Fibre cement associations, Ceylon Fresh Teas, SCANWELL Logistics, Regency Teas, Shan Teas, and others, whose contributions were key to its success.
The SLRBC is committed to further facilitating trade and cultural exchange between Sri Lanka and Russia, continuing to foster stronger business relationships.
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