BOC ends Q2-2023 on positive note, ‘ensuring its presence in SL’s development agenda’

The Bank has reported Rs. 10.5 billion of Profit before Tax (PBT) for the six-month period ended June 30, 2023 amid unprecedented challenges that continued to prevail from the previous year.

A BOC press release read as follows: “The interest income of the Bank grew by 32% to Rs. 259.7 billion primarily due to the increase in AWPLR comparing to the corresponding period of the previous year. However, interest expenses grew by 98% as the deposit mix has been repriced at higher rates, resulting high cost of funding and led to 65% decline in net interest income compared to H1-2022.

“Net fee and commission income amounted to Rs.8.7 billion with 11% growth mainly backed by increase in commission income from card related transactions and travel and remittance related services. Income from trading and investment activities and other operating income resulted in a negative note due to exchange loss reported during H1-2023 in line with the 15% LKR appreciation.

“Operating expenses for the period reported an increase of 12% in the backdrop of cost escalation due to inflation. Accordingly, the Bank has reported the PBT of Rs. 10.5 billion with 52% decline over H1-2022. At the end of H1-2023, the Bank’s asset base recorded a negative growth of 7% reflecting the impact of LKR appreciation. Amidst the high competition prevailed in the market, the Bank’s deposit base stood at Rs. 3.4 trillion as of end June 2023.

“Despite the adverse headwinds, the Bank has complied with regulatory capital requirements above the stipulated norms by maintaining the Tier I Capital Adequacy Ratio of 12.83% and Total Capital Adequacy Ratio of 15.64%. Meanwhile, all the liquidity ratios also improved given the positive market liquidity vibes conquered during the period under review.

“The General Manager/ Chief Executive Officer of the Bank, Russel Fonseka highlighted that, “Bank of Ceylon remains committed to deliver on its mandate of fostering the SME sector and ensuring funding of large infrastructure development in the nation despite the challenging operating environment. Further, he stated that showing its continued commitment to being the Bankers to the Nation, the Bank has recently introduced a new bank funded loan scheme to grant credit facilities for Micro, Small and Medium Enterprises in the name of “SME Energizer” in order to promote economic sectors and export earnings leading the revival of economy”.

“Reviewed against a tightened monetary policy on the backdrop of unprecedented economic turmoil in the country, being among the “Top 1000 Banks” in the world is a clear indication of BoC’s strong financial position and the measures undertaken by Bank of Ceylon to remain resilient by overcoming multiple challenges.” commented President’s Counsel Ronald C. Perera, Chairman of Bank of Ceylon.”