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BOC’s
2008 bottom line up 24% to Rs. 4.1 b
- Group
revenue up 18% to Rs. 62 billion
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Assets and liabilities up by over 10% to Rs. 484.8
billion and Rs. 461 billion.
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Bank’s deposit base up by 2.2% to Rs. 315.5 b
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Borrowings swell by 37.6% to Rs. 128 b
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Net loans and advances dip by 5% to Rs. 268 b
Bank
of Ceylon (BOC) has posted a net profit of Rs. 4.1 billion
in 2008, up by 24.3% over 2007.
Consolidated profit before tax was nearly Rs. 6 billion
reflecting an increase of 15% in comparison to the performance
in 2007. Total group revenue rose by 18% to Rs. 62 billion.
Group assets amounted to Rs. 491.7 billion up by 10.7%
whilst liabilities were Rs. 465.5 billion, reflecting
a similar percentage increase.
The Bank’s net profit was up by 32% to Rs. 3.7
billion while pre-tax profit was Rs. 5.3 billion reflecting
an 18% increase. Total revenue of the Bank was up by
18% to Rs. 59 billion. Operating profit before provisions
was Rs. 8.1 billion, up by 28.4% in 2007.
BOC’s deposit base grew by Rs. 7 billion or 2.2%
to end 2008 with a base of Rs. 315.5 billion. On the
other hand total borrowings rose by 37.6% to Rs. 128
billion. Bulk of the increase is from banks and financial
institutions in Sri Lanka by 265% to Rs. 35.3 billion
while BOC also issued a landmark listed debenture issue
(which enabled it to be quoted on the Colombo Stock
Exchange) and borrowings from debentures rose by 97%
to Rs. 18 billion.
Bank’s net loans and advances also declined by
5% to Rs. 268 billion as opposed to Rs. 282.4 billion
in 2007. Total non-performing loans and advances shot
up by 22% to Rs. 13.8 billion. Gross Non-Performing
Advance ratio (without interest in suspense) was near
5% as opposed to 3.8% in 2007. Net non-performing advance
ratio (net of interest in suspense and provision) was
2.23% in comparison to 1.32% in 2007.
BOC enjoyed an interest margin of 2.98% as against 3.14%
in 2007 and return on assets (before tax) was 1.16%
in comparison to 1.11% whilst return on equity (after
tax) was 16.78% as against 14.59% in 2007. Total capital
adequacy ratio as a percentage of risk weighted assets
was 14.62% whilst in 2007 it was 10.69%. The minimum
requirement is 10%. Core capital adequacy ratio as a
percentage of risk weighted assets was 10.09% in 2008
and 10.04% in 2007 whilst the minimum requirement is
5%.
BOC’s net interest income grew by only 7.3% to
Rs. 13.7 billion. Interest income on loans and advances
grew by 12% or Rs. 3.7 billion to Rs. 34.6 billion whilst
interest income on other interest earning assets rose
by 25% to Rs. 14 billion. Interest expense on deposits
was up 21% or Rs. 3.7 billion to Rs. 21 billion. Interest
expense on other interest bearing liabilities was Rs.
14 billion up by 15% over 2007.
Non-interest income also grew from Rs. 8.7 billion in
2008 from Rs. 6.5 billion in 2007.
BOC which saw its number of employees decline from 8,253
to 7,912, however reported a 6% increase in personnel
cost to Rs. 7 billion.
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