Bank of Ceylon Group, the largest state owned financial services group with its subsidiaries reported a substantial uplift in profit to Rs.5.2bln at the pretax level for the year 2007. Countering a turbulent external environment, BoC financials show robust growth and healthy improvement across all businesses. If development activities undertaken across the country were financed at commercial rates, reported pretax profit would have increased to Rs.7.1bln and the net profit would rise to Rs.4.6bln from the reported Rs.3.3bln. In the case of the parent bank, pre-tax profit amounted to Rs.4.5bln against Rs.4.1bln reported in 2006 reflecting a growth of 9 per cent. Adjusting for national development activities would increase such profits to Rs.6.4bln while the net profit would rise from the reported Rs.2.8bln to Rs.4.2bln.

The audited group financials reveal that profit before VAT on financial services and income tax was Rs.7.1bln for 2007, an increase of Rs.605 million or 9 per cent over 2006. An increase in group tax liability to Rs.1.8bln for 2007 from Rs.1.7bln for 2006 resulted in a post tax profit of Rs.3.3bln reflecting a growth of Rs.304 million or 10 per cent over the previous year.

The uplift in profit was achieved despite the decrease in exchange income due to the appreciation of the rupee against the US $. In the main it was due to strong growth recorded in core banking activities, facilitated by the largest network of branches, culture of in-house risk management and focused recovery processes.

Aggregate revenues reported at Rs.50bln for the bank shows an increase of 43 per cent over 2006. This sharp increase is derived mainly from interest income amounting to Rs.42bln reflecting significant growth in interest generating assets. 

Total deposits of BoC crossed the Rs.300bln milestone to reach Rs.309 billion in 2007 as against Rs.263 billion reported at end of the year 2006. Gross loans & advances reached Rs.291bln reflecting a 25 per cent growth or Rs.58bln against Rs.233bln reported previously. Such growth was achieved without reducing asset quality reflected by a reduced NPL Ratio down from 5.8 per cent in 2006 to 3.9 per cent at the end of 2007. In terms of size, counting a customers’ accounts base nearing 7 million, BoC Group total footings topped Rs.444bln, surpassing the Rs.400bln milestone by a large margin. It made a total contribution of Rs.4bln to its only shareholder in 2007, the Government of Sri Lanka, by means of value added tax, income tax and dividends. It remains the No.1 Bank in Sri Lanka and Bankers to the Nation.