ComBank Group’s deposits pass Rs 2 trillion threshold in Q1 amidst challenges

The Commercial Bank of Ceylon Group’s deposit base has surpassed Rs 2 trillion, a milestone it achieved in the first quarter of 2023 despite the continuing impacts of mercurial exchange rates and market interest rates, and the effects of the economic downturn on multiple sectors of business.

The Group, comprising of Sri Lanka’s biggest private sector bank, its subsidiaries and an associate, has reported noteworthy operational gains for the three months ending 31st March 2023, with gross income up 54.20% to Rs 84.149 billion, interest income growing by 100.65% to Rs 75.939 billion and fee and commission income improving by 35.37% to Rs 7.301 billion compared with the first quarter of 2022.

Interest income growth of the Group was driven by the sharp rise in market interest rates, which generated an 84.75% improvement in income from loans and a 127.98% increase in income from government securities in the review period. However, the same factor resulted in interest expenses for the three months ballooning by Rs 37.940 billion or 199.43% to Rs 56.964 billion, with interest expenses on deposits of the Group increasing by 258%.

Consequently, the Group’s net interest income of Rs 18.975 billion for the quarter reflected a marginal growth of 0.81%.

A revaluation of the Group’s assets in foreign currency in the context of the appreciation of the Rupee in the review period resulted in total assets of the Group reducing by a marginal 0.29% to Rs 2.492 trillion as at 31st March 2023. Gross loans and advances of the Group also reduced by 4.73% over the three months to Rs 1.187 trillion, partly due to the appreciation of the Rupee.

(Commercial Bank)