Sunday, May 27, 2012

Commercial Bank reports robust deposit growth in 1Q 2012

The Commercial Bank has reported robust growth in deposits in the first quarter of 2012 in addition to growth in interest income on loans and advances, and gains in foreign exchange income.

In a statement, the bank said post tax profits grew 38 % to Rs 2.8 billion in the 3-month period ending March 31, 2012.

Interest Income gained by 27 % to Rs 11 billion, mainly as a result of the interest income on loans and advances growing by 42 % to Rs 9 billion. “These results reflect a continuation of the momentum achieved in 2011, even under challenging market conditions,” Commercial Bank’s Managing Director and CEO Ravi Dias was quoted as saying in the statement. “Loan growth was steady in the quarter reviewed, and the challenge for the rest of the year would be to maintain the cost of funds.”

Total deposits of the bank stood at Rs. 351 billion as at 31st March 2012, reflecting a growth of 10 % from Rs.318 billion as at 31st December 2011. Gross loans and advances of the bank too increased and stood at nearly Rs. 309 billion. Total assets of the bank reached Rs. 475 billion.

Commercial Bank’s Chief Financial Officer Nandika Buddhipala said non-interest income (commissions, investment income, foreign exchange and other income) grew sharply by 130% to Rs 3 billion mainly due to gains from the depreciation of the Sri Lanka Rupee against the US Dollar.

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