2. Commercial Bank of Ceylon
Commercial Bank of Ceylon is number two in the Business Today TOP 30 and maintains its strong position in the ranking. As the largest listed financial institution in the country with a market capitalisation of approximately 115 billion rupees the bank is also the third largest organisation listed on the CSE.
Commercial Bank has consistently expanded its network going beyond the shores of Sri Lanka. With a strong presence in Sri Lanka and Bangladesh, the bank is set to commence operations in Myanmar, the Maldives and Italy. While each market has its own value proposition, Commercial Bank will be able to utilise its expertise to perform in these new markets.
Commercial Bank recorded a PAT of 11.9 billion rupees and an asset growth of 10.58 per cent. The bank's loan portfolio and deposits grew by 25 per cent and 18 per cent respectively. The loans and advances amounted to nine per cent of the banking sector due to adopted client acquisition strategies. The bank also saw a growth of over 100 billion rupees in loans and advances for the first time in its history.
Demand for private sector credit resulted in the growth in the corporate portfolio. Retail lending focused on the SME sector, vehicle leasing and home loans. Cost income ratio improved to 48.8 per cent, which supported the bottom line of the bank.
Commercial Bank has identified the importance of implementing the latest IT systems, machinery and equipment together with maximising mobile and internet banking. Therefore, while the existing branch network will be further developed it will be done so together with technological advancements to maximise value, while reducing non-essential operational costs.
New products were introduced while adjustments were made to existing products to cater to customer requirements.
With Sri Lanka's economic landscape changing with the Government's new direction, Commercial Bank, as the largest private sector bank in the country,will need to focus on realigning its strategies to cater to the new demand that will be created.