Bank of Ceylon, at the end of year 2015, recorded the highest ever profit of 25.3 billion rupees, made by a single commercial entity in the country. This is a 25 per cent growth over the previous year. Post tax profit at 16.1 billion rupees recorded 19 per cent growth. The BoC Group recorded a 25.5 billion rupee pre-tax profit while post tax profit was 16.2 billion rupees. The group companies contribute 3 per cent to the group’s total assets.
Interest income, the main source of income of the bank, increased by 6 per cent during 2015 while interest expense decreased by 4 per cent, resulting in a favourable net interest income with 23 per cent growth. BoC’s CASA (current and savings accounts to total deposits) mix has improved further during 2015 to 46.5 per cent, resulting in a lower cost of funds.
Despite the increase in operating cost by 15 per cent, the cost-to-income ratio has come down to 43.6 per cent from 44.0 per cent, enabling the bank to stay below the industry average while signifying the robustness of the bank’s cost management practices.
BoC also achieved 18 per cent growth in assets to LKR 1.6 trillion. The loan portfolio increased by 92.5 billion rupees during the year.
The bank reported a 1.1 trillion-rupee deposit base, derived through an 11 million customer base. This is a 16 per cent growth over the previous year.
BoC’s 625 service points of branches and other access points contributed to the bank’s achievements.
“BoC always strives to fulfil its corporate social responsibility and during 2015 we have contributed to enhance education, preserving cultural and national heritage, livelihood development, improving health and well-being and entrepreneurship developments. Our CSR mandate has been recognised at the National Business Excellence Award 2015 with the Winner for Excellence in CSR award,” said Ronald C Perera, chairman.
During the year, BoC executed many technology-driven process changes, both at the front line and at the back office, and also supported the government sector in many ways.