ComBank deposits surpass landmark Rs 1 trillion in Q1 2019



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The Commercial Bank Group comprising of the Commercial Bank of Ceylon PLC, its subsidiaries and associates, has reported gross income of Rs 35.501 billion for the three months ended March 2019, an improvement of 12.86% over the first quarter of 2018.


Operating profit before impairment charges for the period represented an increase of 4.86% over the corresponding period of 2018. However, operating profit before taxes on financial services at Rs 6.804 billion reflected a negative growth of 5.11%, largely driven by an increase in impairment charges owing to rising non-performing loans and early recognition of impairment provisions as required by the expected credit loss method under SLFRS 9.


The higher impairment charges necessitated by the slowdown in key sectors of the economy, lower exchange profits resulting from translation losses on foreign exchange, and substantially higher taxation in the three months reviewed negatively impacted profits despite sound operational results reported by the Group.


The Group posted profit before income tax of Rs 5.019 billion and profit after income tax of Rs 3.191 billion in the first quarter of 2019 in a performance that reflects the impact of these external factors.


Further, an increase in the taxes on financial services primarily due to the introduction of Debt Repayment Levy (DRL) from 1st October 2018, which cost the Bank Rs 576.450 million, contributed to a decline in the pre-tax profit of the Group during the reviewed quarter by 14.86% to Rs. 5.019 billion and by 19.08% to Rs. 4.774 billion at Bank level.


(ComBank)


 
 
 
 
 
 
 
 
 
 
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