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Chairman, President’s Counsel Ronald C. Perera

Bank of Ceylon (BoC), in an iconic close at end 2015 has raised the bar by recording the highest ever profit of Rs.25.3 billion, made by a single commercial entity in the country. This is a 25% growth over the previous year. Post tax profit at Rs. 16.1 billion recorded 19% growth over end 2014. The BoC Group recorded Rs. 25.5 billion pre-tax profit achieving a 19% increase over the previous year while post tax profit was Rs. 16.2 billion with a 13% increase over 2014. The Group companies contribute 3% to the Group’s total assets.

Interest income the main source of income of the Bank increased by 6% during 2015 while interest expense decreased by 4% resulting in a favorable net interest income with 23% growth.
Despite the increase in operating cost by 15%, the cost to income ratio has come down to 43.6% from 44.0% enabling the Bank to stay below the industry average while signifying the robustness of the bank’s cost management practices.

The Bank achieved yet another target during the year by reporting a Rs. 1.1 trillion deposit base derived through an 11 million-customer base.

BoC has maintained all its Key Performance Indicators (KPIs) in line with the expected levels .The Bank’s Return on Average Assets (ROAA) ratio stood at 1.8% and Return on Average Equity (ROAE) ratio stood at 20.7% with a marginal increase over the previous year.  The Bank strived to maintain a better trade-off between liquidity and interest earning assets by maintaining a domestic liquid asset ratio of 28.2% and an off-shore liquid asset ratio of 37.6% as of end 2015, standing well above the Central Bank’s required benchmark of 20%. Capital Adequacy Ratio (CAR) which is a key regulatory ratio for banks has been maintained above the regulatory levels. Prior to incorporating the current year profit, the Tier I capital ratio stood at 7.8% and Tier II at 11.8%.

 

BOC’s General Manager D.M. Gunasekera