Business

‘Mission focus’ helps ComBank Group end tough 2021 with solid growth

Published

4 years ago

2022/02/28

Sahan Weerasooriya

Net interest income up 30.56% to Rs 66.416 billion

Bank’s CASA ratio strengthens further to 47.83%, an industry benchmark

Bank’s Cost to Income Ratio (excluding VAT on Financial Services)

improves to 31.61% from 33.95% at end 2020 and 38.51% at end 2019

Total taxes increased to Rs 14.512 billion

Impairment charges increased by 17.37% to Rs 25.140 billion

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 more than 80% of the top line in a year of mixed fortunes.

The Group, comprising the Commercial Bank of Ceylon PLC – Sri Lanka’s largest private sector bank – its subsidiaries and the associate, reported interest income of Rs 132.818 billion for the year ended 31st December 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%.

The final quarter of the year saw interest income growing by 17.84% to Rs 36.592 billion and accounting for more than 83% of the Group’s three-month gross income of Rs 43.625 billion, which was up 13.76% over the fourth quarter of 2020. This was despite interest expenses increasing by 4.30% to Rs 17.709 billion in the final quarter due to an increase in interest rates.

Total operating income for the year under review 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 a healthy 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 said. Total operating expenses increased by 12.93% to Rs 29.658 billion consequent to an increase in personnel expenses following the signing of a Collective Agreement effective January 2021, while general cost increases resulted in other operating expenses for the year growing by 18.01% to Rs 9.638 billion.

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 for the year under review, achieving a robust growth of 36.11% and profit after tax of Rs 23.606 billion, recording an improvement of 44.17%.

Commenting on these results, Commercial Bank Chairman Justice K. Sripavan said: “The performance of the Group can be described as exceptional when the external challenges of the year are factored in. Our focus on the core mission and the needs of the hour resulted in emphasis being placed on enhancing customer experience, and we are proud of the ways in which our teams served with utmost dedication, putting our customers first as they have done for the past 101 years.”

Commercial Bank Managing Director and Group CEO S. Renganathan pointed out that the Bank was able to improve on its key performance ratios in 2021, to become even more financially stable and better-positioned to continue its mission as a systemically important bank. “In the face of uncertainty, we continued to build on our last year’s momentum and relief programs, emerging as the leading lender for COVID-19 relief among private sector banks in Sri Lanka,” he said. “We have continued to demonstrate remarkable operating resiliency throughout the pandemic through customer focus, digital engagement and operational excellence.”

Total assets of the Group grew by Rs 221 billion or 12.54% over the year to reach Rs 1.983 trillion as at 31st December 2021.

Gross loans and advances of the Group increased by Rs 133 billion or 13.83% to Rs 1.095 trillion, recording a monthly average growth of Rs 11 billion over the 12 months.

Total deposits of the Group recorded an improvement of Rs 186 billion or 14.46% in the 12 months reviewed at a monthly average of Rs 15.5 billion to reach Rs 1.473 trillion as at 31st December 2021.

A noteworthy achievement of the year under review was the continuing improvement of the Bank’s CASA ratio, an industry benchmark. For the year ended 31st December 2021, the Bank’s CASA ratio stood at 47.83% improving from 42.72% at the end of 2020.

Elaborating on some of the highlights of the income performance for the year under review, the Bank said that net fee and commission income of the Group improved by a steady 24.64% to Rs 12.242 billion, while net other operating income grew by 28.72% to Rs 10.002 billion, helped by exchange gains of Rs 1.4 billion. The Group posted a net gain of Rs 1.936 billion from trading and a net gain of Rs 3.002 billion from de-recognition of financial assets, the latter figure reflecting a decline due to a reduction in gains from the sale of Treasury Bonds and Sovereign Bonds.

In other key indicators, 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 Cost to Income Ratio before VAT on Financial Services improved to 31.61% at the end of the year under review from 33.95% at the end of 2020 and 38.51% at the end of 2019. The Cost to Income Ratio inclusive of VAT on Financial Services improved to 37.97% from 39.96% at end 2020 and 49.41% at the end of 2019.

The Bank’s Tier 1 Capital Adequacy Ratio (CAR) stood at 11.923% as at 31st December 2021, and its Total Capital Ratio stood at 15.650%, compared to the revised minimum requirements of 9% and 13% respectively imposed by the regulator consequent to the COVID-19 pandemic.

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 31st December 2020.

The Bank’s interest margin improved to 3.51% from 3.17% for the year 2020. Similarly, the Return On Assets (before taxes) and Return On Equity too improved to 1.74% and 14.66% respectively for the year ended 31st December 2021 compared to 1.51% and 11.28% a year ago.

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Business

Binance signals a maturing Crypto pitch in Sri Lanka

Published

16 hours ago

2026/02/28

Thilina Walpola

The community at the event

Frames crypto investing as a ‘measured journey rooted in knowledge and security’

In an industry often characterised by velocity, volatility and viral marketing, Binance’s latest community activation in Sri Lanka suggested a deliberate recalibration of its investor messaging.At its #BinanceHODLove event held at One Galle Face Mall, the world’s largest crypto exchange by trading volume chose a Valentine’s-themed slogan that stood out for its restraint: “Real Love Doesn’t Rush, Neither Should Crypto: A Valentine’s Message for Smart Investors.”

Behind the seasonal branding lies a more strategic theme – one that aligns with the crypto industry’s post-cycle shift toward compliance, literacy and risk awareness.

Sri Lanka’s retail investor base has demonstrated periodic interest in digital assets, particularly during phases of currency pressure and global crypto rallies. Yet market participation has also exposed gaps in financial literacy and susceptibility to high-yield promises.

Binance’s messaging at the event leaned heavily into investor caution. Participants were reminded to scrutinise unsolicited offers, avoid guarantees of quick returns, and protect sensitive information such as private keys and passwords. In a market where informal crypto schemes have occasionally surfaced, such emphasis reflects reputational risk management as much as community engagement.

The company also spotlighted Binance Academy, its educational platform, positioning knowledge acquisition as foundational to long-term participation in blockchain ecosystems.

While the event featured raffles and consumer electronics giveaways to drive footfall, the broader objective appeared to be brand consolidation at the grassroots level. Physical activations in high-traffic urban centres suggested a hybrid strategy: digital scale complemented by localised trust-building.

For a global exchange operating in increasingly scrutinised regulatory environments, nurturing responsible retail participation is both a defensive and expansionary move. By framing crypto investing as a “measured journey rooted in knowledge and security,” Binance is aligning itself with the industry’s pivot toward sustainability rather than speculative exuberance.

The subtext of the campaign was clear: growth in emerging markets like Sri Lanka will depend less on price momentum and more on credibility.

Binance’s Valentine’s message, therefore, may be less about romance and more about risk calibration. In that sense, the slogan captured a broader industry truth: endurance, not impulse, will define the next phase of digital asset adoption.

By Sanath Nanayakkare

Business

Unlisted tax jitters frizzle CSE rally; analysts flag spillover fears

Published

16 hours ago

2026/02/28

Thilina Walpola

Morning gains on the Colombo Stock Exchange (CSE) evaporated sharply in afternoon trade yesterday, as a wave of nervous selling swept through the market triggered by speculation that the government is mooting a fresh 10-15 percent tax on unlisted corporates. Although the proposed levy is currently targeted at entities outside the CSE purview, market participants grew wary that the measure could signal a broader shift in fiscal policy, stoking fears of future tax hikes that may eventually engulf listed companies and dent corporate earnings.

Amid those developments, the turnover was capped at a mere Rs 369 million despite fourteen crossings.

The top seven crossings mainly contributed to the turnover were Commercial Bank 1.60 million shares crossed to the tune of Rs 359.7 million and its share price traded at Rs 223, Renuka Foods 2.7 million shares crossed to the tune of Rs 179.6 million and its share price traded at Rs 63.50, LOLC Holdings 300,000 shares crossed to the tune of Rs 171.9 million and its share price traded at Rs 573, Sampath Bank 821,000 shares crossed to the tune of Rs 132 million and its share price traded at Rs 161, Commercial Bank (Non-Voting) 484,000 shares crossed to the tune of Rs 98.9 million and its share price traded at Rs 204, Sierra Cables two million shares crossed to the tune of Rs 69.6 million and its share price traded at Rs 34.80 and Citizens Developments Business Bank (Non-Voting) 200,000 shares crossed to the tune of Rs 62.9 million and its share price traded at Rs 324.

In the retail market top seven companies that have mainly contributed to the turnover were Renuka Agri Rs 1.14 billion (82.4 million shares traded), Softlogic Finance Rs 653.9 million (115 million shares traded), Sampath Bank Rs 270.8 million (1.65 million shares traded), Softlogic Capital Rs 230 million (19.3 million shares traded), JKH Rs 201 million (nine million shares traded) ,LOLC Holdings Rs 171.9 million (297,000 shares traded) and LMF Rs 171 million (1.8 million shares traded). During the day 369 million shares volumes changed hands in 39059 transactions.

It is said that banking and agriculture related companies performed well. In the banking sector Sampath Bank and Commercial Bank performed well. Further manufacturing sector especially JKH also significantly active in the market.

By Hiran H Senewiratne

Business

ComBank loan book grows by Rs. 541bn to top Rs. 2tn

Published

16 hours ago

2026/02/28

Thilina Walpola

The Commercial Bank of Ceylon achieved another performance milestone in 2025, becoming the first private sector bank in the country to expand its loan book beyond Rs. 2 Tn., with a growth of Rs. 541 Bn. over 12 months at a monthly average of over Rs. 45 Bn., demonstrating its commitment to national economic resurgence.

Recording the highest annual loan growth in absolute terms in the history of the institution, the Bank said gross loans and advances for the year ending 31st December 2025 grew by 36.37% to Rs. 2.028 Tn., taking total assets to Rs. 3.258 Tn. This reflected an increase of Rs. 468 Bn. or 16.78% and demonstrated more than double the growth recorded in 2024. The Bank’s net assets value per share improved to Rs. 198.30 from Rs. 170.94 at end 2024.

Deposits grew by 16.65% or Rs. 372 Bn. over the 12 months to end the year at Rs. 2.6 Tn., reflecting an average deposit growth of over Rs. 30 Bn. per month despite relatively lower interest rates, the Bank said. The CASA ratio of the Bank, which is considered to be the industry’s best, stood at 39.65% from 38.07% as at 31st December 2024.

Sharhan Muhseen, Chairman of Commercial Bank said: “We remain focused on the fundamentals that sustain shareholder value: earnings resilience, balance sheet strength, disciplined risk management and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.”

Sanath Manatunge, Managing Director/CEO of Commercial Bank said: “In 2025, we proved that scale and discipline can move together, growing lending and accelerating digital activity while strengthening asset quality and balance sheet resilience.”

In a filing with the Colombo Stock Exchange (CSE) the Bank said it recorded gross income of Rs. 354.81 Bn. for the year ending 31st December 2025 reflecting growth of 13.70% over the normalised figure for 2024, after adjusting for the impacts of restructuring of Sri Lanka International Sovereign Bonds (SLISBs) accommodated in that year, in order to avoid potential distortion of growth figures. Net gains / (losses) from derecognition of financial assets in the Income Statement for 2024 (as reported) included a derecognition loss on restructuring of SLISBs amounting to Rs. 45.108 Bn.