Bank of Ceylon reports Rs. 40.3 Bn PBT in 2023
Bank of Ceylon (BOC) reported a Profit Before Tax (PBT) of Rs. 40.3 billion for the year ended December 31, 2023. The Bank of Ceylon Chairman and President’s Counsel, Ronald C Perera stated that, “The Bank has successfully navigated all headwinds that came across during the 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. Nevertheless, short-term strategies were carefully managed without compromising the Bank’s long-term strategic priorities, with a focus on strengthening the financial position.”
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 effects 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. The Bank witnessed a noteworthy net reversal of impairment provisions for loans and advances amounting to Rs. 2.7 billion during the year. Total operating expenses increased by 10%, mainly due to escalating other expenses in line with higher inflation. However, operating profit before taxes on financial services stood at Rs 53.0 billion, marking a notable improvement of 25% compared to the previous year.
The Profit Before Tax (PBT) of Rs. 40.3 billion was reported after charging the Value Added Tax (VAT) of Rs. 11.1 billion and Social Security Contribution Levy (SSCL) of Rs. 1.5 billion. Additionally, the Bank incurred income tax expenses amounting to Rs. 13.7 billion for the year, resulting in a Profit After Tax of Rs. 26.7 billion.The Bank’s deposit base expanded by 16% to Rs. 3.9 trillion, indicating strong customer confidence. During the year the Bank’s total assets grew by 2% and reached to Rs. 4.4 trillion, further solidifying its position as a leader in the industry. Bank of Ceylon has exposures of Rs. 111.0 billion towards the agricultural sector as of end December 2023. Further the bank has contributed funds towards the importation of pharmaceutical and energy.
For the first time in Sri Lanka, a state-owned bank issued Basel III compliant listed debentures amounting to Rs. 10 billion.The General Manager/ Chief Executive Officer of the Bank, Russel Fonseka highlighted further, “The Agile banking model is essential in our rapidly evolving digital economy. Overseas presence will also be a priority area, and the Bank will promote green/blue lending while introducing new products related to these aspects. Bank of Ceylon aims to generate not only financial and economic value but also long-term environmental and social value for a diverse array of stakeholders”.
The post Bank of Ceylon reports Rs. 40.3 Bn PBT in 2023 appeared first on DailyNews.