Business
ComBank posts impactful 9-month results with strong loan book growth
The Commercial Bank of Ceylon group has reported gross income of Rs. 268.49 Bn. and net interest income of Rs. 103.48 Bn. at the end of the third quarter of 2025, with strong year-on-year growth of 34.60% in the loan book and curtailed interest expenses contributing to an impressive nine-month performance.
Comprising of Sri Lanka’s largest private sector bank, its subsidiaries and an associate, the Group reported in a filing with the Colombo Stock Exchange (CSE) that interest income grew by 6.96% to Rs. 221.53 Bn. for the nine months ending 30th September 2025, while interest expenses for the period remained static at Rs. 118.05 Bn. as a result of the lower cost of funds and continuing improvement in the CASA ratio.
Consequently, net interest income at Rs. 103.48 Bn. for the nine months reviewed, grew by 16.30% in contrast to the 11.08% growth in gross income. In the third quarter, gross income grew by 16.37% to Rs. 91.46 Bn., while interest income for the three months improved by 10.35% to Rs. 74.88 Bn., with the loan book growing by 10.14% at a monthly average of Rs. 58.51 Bn.
“Our commitment to lending remains undiminished, because we believe that our capacity to support national economic growth targets must be fully leveraged within prudential limits” said Sharhan Muhseen, Chairman of Commercial Bank. “The group’s performance reflects the impacts of this approach, and we expect similar strong growth in the final quarter of the year, in line with the trajectory of economic and business recovery.”
Sanath Manatunge, Managing Director/CEO of Commercial Bank said the Bank’s ability to sustain growth in the loan book backed by a focus on yield management and cost optimization helped the Bank to post these strong results for the nine months reviewed. He said that the Bank maintained a strong focus on the CASA ratio, which stood at 39.92% as at 30th September 2025, compared to 38.07% at end December 2024 and 39.60% a year ago, helping the Bank to keep the cost of funds under control.
Total operating income increased by 21.41% to Rs. 140.49 Bn. for the nine months while the Group’s impairment charges and other losses for the period declined by 28.21% to Rs. 14.37 Bn., primarily due to the previous year’s figure including an additional provisioning for the Sri Lanka International Sovereign Bonds (SLISBs) held by the Bank. For the third quarter of 2025, the Group reported a total operating income of Rs. 47.74 Bn., an improvement of 24.13%.
The Group posted a net operating income of Rs. 126.13 Bn. for the nine months, reflecting an impressive growth of 31.79%, while keeping operating expenses at Rs. 39.41 Bn., an increase of only 8.00%, resulting in operating profit before taxes on financial services growing by a noteworthy 46.46% to Rs. 86.71 Bn.
Taxes on financial services increased by 50.72% to Rs. 13.36 Bn., leading to Group profit before income tax of Rs. 73.35 Bn. for the nine months with a growth of 45.71%. Income tax increased by 34.71% to Rs. 25.33 Bn., resulting in a net profit of Rs. 48.02 Bn. for the Group during the nine months reviewed, representing an impressive bottom-line growth of 52.27%. The Group reported a net profit of Rs. 16.86 Bn., recording an improvement of 33.38% for the third quarter of the year.
Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs. 70.57 Bn. and profit after tax of Rs. 46.02 Bn. for the nine months reviewed, recording growths of 44.83% and 51.51% respectively.
Total assets of the Group increased by Rs 357 Bn. or 12.40% during the nine months to reach Rs. 3.233 Tn., as at 30th September 2025. Asset growth over the preceding 12 months was Rs. 469 Bn. or 16.99%.
The Group’s continued impetus in lending saw gross loans and advances growing by Rs. 381 Bn. or 25.01% over the nine months to Rs. 1.907 Tn., at a monthly average of Rs. 42.39 Bn. Loan book growth over the preceding 12 months was Rs. 490 Bn., with YoY growth of 34.60%, averaging Rs. 40.85 Bn. per month.
Deposits grew by 12.26% to Rs. 2.589 Tn. in the nine months, an increase of Rs. 283 Bn. at an average monthly growth of Rs 31.40 Bn., and recorded YoY growth of 16.27%, with monthly average growth of Rs 30.18 Bn., over the preceding 12 months.
In other key performance indicators, the Bank’s Tier 1 and Total Capital Ratios stood at 13.391% and 17.282% respectively as at 30th September 2025, both comfortably above the statutory minimum ratios applicable for the Bank of 10% and 14% respectively.
In terms of profitability, the Bank’s net interest margin increased to 4.53% for the nine months compared to 4.27% reported at end 2024 and 4.38% a year ago. The Bank’s return on assets (before tax) improved to 3.19% compared to 2.47% a year ago, while the return on equity improved to 21.03% from 17.42% as at 30th September 2024.
The Bank’s cost to income ratio excluding taxes on financial services stood at 27.95%, as against the normalized ratio of 33.85% for 2024, while the figure inclusive of taxes on financial services was 37.69% for the period, in comparison with the normalized ratio of 41.89% for the preceding year, when the effect of the net loss on restructuring of Sri Lanka International Sovereign Bonds is discounted.
In terms of asset quality, the Bank’s impaired loans (Stage 3) ratio improved further to 1.79% compared to 4.08% a year ago, while its impairment (Stage 3) to Stage 3 loans ratio for the reviewed period improved to 71.43%, as against 64.61% as at 31st December 2024 and 53.54% as at 30th September 2024.
Sri Lanka’s decision to invest Rs. 2.5 billion in restoring the heavily polluted Beira Lake marks one of the most significant urban environmental interventions in recent years, underscoring a growing recognition that ecological rehabilitation is also an economic imperative.
The multi-pronged project—covering the closure of illegal sewage discharge points, large-scale dredging, and the installation of aeration systems—is expected to not only revive aquatic life but also unlock commercial, tourism and real estate value in the heart of Colombo.
Officials say the initiative is designed to transform Beira Lake from a long-neglected liability into a productive urban asset.
A senior official from the Ministry of Environment told The Island Financial Review that untreated wastewater and illegal sewer connections had been the primary contributors to the lake’s degradation for decades. “Closing these illegal sewage points is the most critical intervention. Without that, any dredging or aeration would only offer temporary relief, the official said, adding that enforcement will be carried out in coordination with the Colombo Municipal Council (CMC) and other regulatory agencies.
From a business perspective, the clean-up is being viewed as a catalyst for urban regeneration. Urban Development Authority (UDA) sources noted that a healthier Beira Lake would significantly enhance the attractiveness of surrounding commercial developments, hospitality projects and public spaces. “Environmental remediation directly impacts land values and investor confidence. A clean, living lake changes the entire economic profile of the area, an UDA official said.
The dredging component of the project is aimed at removing decades of accumulated sludge, which has reduced water depth and contributed to foul odours and fish die-offs. According to officials involved in project planning, the dredged material will be disposed of following environmental guidelines to avoid secondary pollution risks—an issue that has undermined similar efforts in the past.
Meanwhile, the installation of modern aerators is expected to improve dissolved oxygen levels, a key requirement for sustaining fish and other aquatic organisms. “Restoring aquatic life is not just about biodiversity; it is about creating a water body that can safely support recreational activities and public engagement, a senior CMC engineer explained.
Economists point out that the Rs. 2.5 billion allocation, while substantial, should be seen against the long-term cost savings and revenue potential. Reduced public health risks, lower water treatment costs downstream, increased tourism activity and higher commercial footfall could deliver returns that far exceed the initial outlay.
By Ifham Nizam
CSE activities kicked off on a negative note initially but later experienced some recovery yesterday because most investors were anticipating positive third quarter result shortly, market analysts said.
Amid those developments, the market indicated mixed reactions. The All Share Price Index went down by 4.13 points, while the S and P SL20 rose by 14.02 points. Turnover stood at Rs 5.17 billion with 11 crossings.
Top seven crossings were reported in Renuka Holdings where eight million shares crossed to the tune of Rs 324 million; its shares traded at Rs 40.50, Tokyo Cement one million shares crossed to the tune of Rs 113 million; its shares traded at Rs 113, Distilleries 1.85 million shares crossed for Rs 111 million; its shares traded at Rs 60, ACL Cables 500,000 shares crossed for Rs 51.5 million, its shares sold at Rs 103 Chevron Lubricants 250,000 shares crossed for Rs 47.5 million; its shares traded at Rs 190, Ambeon Capital 738600 shares crossed at Rs 40.50 each and Melstacope 150,000 shares crossed for Rs 27 million; its shares traded at Rs 180.
In the retail market top seven companies that mainly contributed to the turnover were; Colombo Dockyard Rs 1.26 billion (12 million shares traded), ACL Cables Rs 348 million (3.3 million shares traded), HNB (Non-Voting) Rs 152 million (425,000 shares traded), Hayleys Rs 109 million (507,000 shares traded), Tokyo Cement (Non-Voting) Rs 94 million (989,000 shares traded) Lanka Realty Investments Rs 80 million (1.6 million shares traded) and Sampath Bank Rs 77 million (498,000 shares traded). During the day 135 million share volumes changed hands in 38398 transactions.
It is said that manufacturing sector counters, especially Tokyo Cement and ACL Cables, performed well. Further, Colombo Dockyard became the most preferred share for investors. The Banking sector also performed well.
Browns Beach Hotels said that the company will delist from the CSE, having made arrangements with majority shareholders Melstacope and Aitken Spence Hotel Holdings to buy back shares from minority shareholders at an exit offer price of Rs 30.
Yesterday the rupee was quoted at Rs 309.75/85 to the US dollar in the spot market, from Rs 309.72/77 the previous day, having depreciated in recent weeks, dealers said, while bond yields were down.
A bond maturing on 15.05.2026 was quoted at 8.25/35 percent.
A bond maturing on 15.02.2028 was quoted at 9.00/10 percent, down from 9.05/10 percent.
A bond maturing on 15.12.2029 was quoted at 9.65/70 percent, up from 9.65/69 percent.
A bond maturing on 01.03.2030 was quoted at 9.72/75 percent, from 9.70/76 percent.
A bond maturing on 15.03.2031 was quoted at 9.95/10.00 percent, down from 10.00/10 percent.
A bond maturing on 01.10.2032 was quoted at 10.30/50 percent.
A bond maturing on 01.06.2033 was quoted at 10.72/75 percent, down from 10.70/80 percent.
A bond maturing on 15.06.2035 closed at 11.05/10 percent, down from 11.07/11 percent.
The telegraphic transfer rates for the American dollar were 306.2500 buying, 313.2500 selling; the British pound was 409.9898 buying, and 421.3080 selling, and the euro was 354.1773 buying, 365.5655 selling.
By Hiran H Senewiratne
Ceylon Theatres Limited, in partnership with British Council, is proud to present the first ever screening of National Theatre (NT) Live’s Hamlet starring Hiran Abeysekara in Asia. The first screening will happen at Regal Cinema in Dematagoda (Colombo 9) at 5:30 pm on Sunday, 25 January. Sri Lankan actor Hiran Abeysekera stars in the title role—the first Asian actor to play Hamlet in a National Theatre production.
For Sri Lankan audiences, this screening is both a celebration and a homecoming. It reflects the British Council’s long-standing commitment to nurturing creative talent, widening access to world-class culture, and building deep, people-to-people connections between Sri Lanka and the United Kingdom through theatre and the creative arts. To celebrate the inaugural screening, the British Council is inviting winners and runners-up of the All-Island Inter-School Shakespeare Drama Competition, alongside drama teachers and university actors, to attend the premiere.
Further details on screening dates, venues, and ticketing can be found at: https://ceylontheatres.com/ and on the British Council Instagram page https://www.instagram.com/britishcouncilsrilanka/ or call: 0766192370
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