Despite
a robust 29% growth in revenue, industry giant Bank
of Ceylon has seen its net profit dip 17.6% to Rs. 510.6
million in the first quarter of 2008 in comparison to
the corresponding period of last year.
During
the first three months ended on March 31, 2008, total
revenue amounted to Rs. 13 billion, up by 29% from Rs.
10.1 billion in the first quarter of last year. Interest
income was Rs. 9.5 billion, higher compared with Rs.
6.1 billion a year earlier. BoC had also managed to
improve its net interest income from Rs. 2.8 billion
in 2007 first quarter to Rs. 3.1 billion this year.
However in the non-interest income category, foreign
exchange income in 2008 first quarter was only Rs. 78.7
million as against Rs. 357.2 million last year while
other income improved from Rs. 1 billion to Rs. 1.2
billion. Whilst costs had increased by 10% to Rs. 3.3
billion, as per prudent requirements, general provisions
had increased substantially from Rs. 1 million in 2007
first quarter to Rs. 114.2 million. However specific
provisions were down from Rs. 208 million to Rs. 149
million.
The BoC ended the first quarter with a pre-tax profit
of Rs. 811.8 million, down from Rs. 903 million while
net profit attributable to shareholders was Rs. 510.6
million, down from Rs. 619.7 million in first quarter
2007.
Group revenue was Rs. 13.7 billion, up from Rs. 10.8
billion while net profit was down from Rs. 624.8 million
to Rs. 463.5 million.
Business wise, all major segments had reported strong
revenue growth. Core banking business revenue had grown
from Rs. 7.3 billion to Rs. 9.4 billion, while Treasury
saw revenue grow from Rs. 2.8 billion to Rs. 3.5 billion.
Leasing also saw encouraging growth from Rs. 277.6 million
to Rs. 466 million.
Total deposits of BoC had seen a decline by Rs. 1 billion
to Rs. 307 billion as at March 31, 2008 as opposed to
Rs. 307.6 billion as at December 31, 2007. This is mainly
due to the decline in demand deposits from Rs. 49 billion
to Rs. 46.2 billion though savings had grown from Rs
126.6 billion to Rs. 128 billion. Time deposits saw
a marginal decline to Rs. 129.4 billion. Net loans and
advances too had declined from Rs. 282.4 billion as
at December 31, 2007 to Rs. 271.2 billion as at March
31, 2008. Total performing loans and advances were Rs.
267 billion, down from Rs. 280 billion.
Total borrowings by BoC had increased from Rs. 93 billion
as at end December 2007 to Rs. 99 billion by end March
2008. Total assets of BoC amounted to Rs. 444.3 billion,
down from Rs. 438 billion as at December 31, 2007.
During
the first three months ended on March 31, 2008, total
revenue amounted to Rs. 13 billion, up by 29% from Rs.
10.1 billion in the first quarter of last year. Interest
income was Rs. 9.5 billion, higher compared with Rs.
6.1 billion a year earlier. BoC had also managed to
improve its net interest income from Rs. 2.8 billion
in 2007 first quarter to Rs. 3.1 billion this year.
However in the non-interest income category, foreign
exchange income in 2008 first quarter was only Rs. 78.7
million as against Rs. 357.2 million last year while
other income improved from Rs. 1 billion to Rs. 1.2
billion. Whilst costs had increased by 10% to Rs. 3.3
billion, as per prudent requirements, general provisions
had increased substantially from Rs. 1 million in 2007
first quarter to Rs. 114.2 million. However specific
provisions were down from Rs. 208 million to Rs. 149
million.
