BOC notches LKR 22.1 billion PAT in steady performance

Amidst unexpected challenges, the Bank of Ceylon’s Profit Before Tax for the six months ended 30th June 2021 stood at LKR 27.1 billion, moving forward with stable performance, while managing headwinds caused by low interest rates, cash-flow deferments and operational restrictions.

Profit After Tax (PAT) for the period was LKR 22.1 billion. The Bank’s total assets grew by 11% and reached the LKR 3.3 trillion level reaching another milestone and preserving its industry leadership. The key contributors are growth in loans and investment book which denotes about 93% of the assets of the Bank. The Bank’s gross loan book surpassed the LKR 2.0 trillion mark during the year 2020 and now stands at LKR 2.5 trillion reporting 16% growth during this first half of this year. Both Government and Private sector lending contributed to growth during the period.

The Bank’s deposit base (more than 23% of the industry) increased during the period despite low interest rates. The Bank’s deposit base of LKR 2.6 trillion represents 35% of the Current and Saving deposit (CASA) base, which generates funds at low cost. The Bank’s Tier I Capital and Total Capital ratio stood at 11.5% and 15.0% respectively by end June 2021, which were above regulatory norms. Despite cash flow deferments on loan instalments, the Bank was able to maintain better trade -off between liquid assets and liabilities. All liquidity ratios were maintained well above the regulatory norms.

The long-preserved stability, strength and sustainable growth of the Bank continued, undeterred by the negative market dynamics, highlighted by the reported profit for the year 2020 and the first six months of this year, reflecting the Bank being a true cross-section of the country’s economy.

The Bank also operates a fully

owned subsidiary in London, UK. During the year under review extra effort was invested to manage the Bank’s overseas branches, namely Maldives, the Seychelles, India, and the subsidiary in UK.

Bank of Ceylon continues to be recognised as the highest ranked local bank in the listing of the Top 1000 Banks by the Banker Magazine UK for the year 2021, ranked among the Top 10 Most Admired Companies in Sri Lanka for year 2020 by CIMA/ICCSL/Daily FT. In addition, Bank of Ceylon received four awards at the “Best Corporate Citizen Sustainability Awards 2020” by the Ceylon Chamber of Commerce, which included Category Winner for Employee Relations, Triple Bottom Line Award for Economic Sustainability (Profit), Category Winner of Financial Performance and was also listed among the 10 Best Corporate Citizens for 2020. It was also chosen as the “People’s Banking Services Provider of 2020 and 2021” at the SLIM – People’s Awards. Brand BOC continued to be the No.1 Banking Brand in the country successfully for the 13th consecutive year, by Brand Finance Sri Lanka and Media Services Pvt Ltd.

Leading Sri Lanka’s banking industry with over 82 years of experience as the No.1 Bank in the country, Bank of Ceylon continues to fulfil its role as the most stable and trusted banking entity in the country, serving Sri Lankans from all walks of life with over 2000 customer touch-points across the island, helping them build their lives, providing financial stability and uplifting the country’s economy.

\Bank of Ceylon marks its 82nd Anniversary ensuring the strenghtening of its undisputed leadership position whilst focusing on assisting economic revival.

Highest disbursement under “Saubagya” Working Capital Loan scheme –18,936 facilities worth of LKR 39 Billion.

Moratoriums provided for facilities valued at over LKR 550 Billion during first pandemic wave and over LKR 250 Billion during the second pandemic wave.

Conscious of its duty to continuously power the wheels of the Sri Lanka economy, Bank of Ceylon celebrated its 82nd Anniversary on August 2nd 2021 on an austere note. With Covid -19 pandemic challenging the operational system of all industries, Bank continued to support economic revival through many frontiers.

BOC ensured that the benefits accruing to it through the extraordinary measures introduced by CBSL in its policymaking initiatives trickled down to the ultimate beneficiaries-customers-through moratoriums and concessionary loan schemes.

While recording healthy financial results, BOC continued focused on ensuring that the integrity of the country’s banking sector, including payment and settlements, continued without interruption, while aiding the country in its economic revival, through SME and local entrepreneurship development.

Collaborating with the Ministry of Health and Government Medical Officers Association (GMOA) in their efforts in facing up to the challenges of the pandemic the Bank of Ceylon embarked on a centralized communication hub assisting the affected home-based patients connecting them digitally with medical officials to provide immediate information and advisory facility.

The Bank extended support by implementing the CBSL announced moratorium facilities worth LKR 550 Billion -during the first pandemic wave and LKR 250 Billion during the second pandemic wave. Bank of Ceylon topped the industry in granting loans under the “Saubagya” Working Capital Loan scheme, disbursing LKR 39 billion to over 18,000 borrowers. Stretching its hands out to needy customers further, the Bank of Ceylon launched the “Export Circle” focusing on promoting export industry and added a new Business Unit as Revival and Rehabilitation Unit to support corporate sector companies to revive themselves when confronted with difficult situations.

Developing a Strong National Economy

The Senior Management of the Bank engaged with entrepreneurs and SMEs to provide support on critical business issues covering all provinces of the country.

The “Mithuru” Micro Finance programme of the Bank also served over 2,155 small groups, with prominence given to the Northern, Eastern, North Central and Central provinces. Total disbursements amounts over LKR 536 Million up to Q2 of 2021.

The Bank also introduced BOC “Divi Udana” loan scheme during the year to revitalise the ailing economy, by way of kick starting SMEs and ensuring their funding needs are met. It further introduced “Sashreeka” loan scheme promoting organic fertilizer and locally produced pesticides production among entrepreneurs. (BOC)