- Profit Before Tax of Rs. 94.1 billion
- Profit After Tax of Rs. 58.7 billion
- Total Assets base of Rs. 5.9 trillion
- Total Deposit base of Rs. 4.8 trillion
- Gross loans and advances of Rs. 2.9 trillion
- Rs. 60.1 billion contribution to the Government as taxes
- Rs. 30.0 billion debenture issue oversubscribed underscoring strong investor confidence
Bank of Ceylon (BOC), Sri Lanka’s leading financial institution, reinforced its financial resilience and market leadership during the first nine months of 2026, recording a Profit Before Tax (PBT) of Rs. 94.1 billion. This performance underscores the Bank’s strong earnings capacity, disciplined financial management and ability to sustain business momentum amid evolving market conditions. With its extensive nationwide presence, robust financial foundation and enduring role as the Bankers to the Nation, BOC continued to channel its financial strength towards supporting businesses, enabling economic activity and contributing to Sri Lanka’s sustainable economic progress.
Bank of Ceylon Chairman, Mr. Kavinda de Zoysa, stated, “Our performance over the first nine months of 2026 reflects the strength of BOC’s franchise, the confidence of our customers and the disciplined execution of our strategy. Beyond profitability, our priority remains strengthening our capital position, maintaining sound risk management and further advancing financial inclusion. We are particularly focused on supporting SMEs, facilitating the revival of viable businesses and further expanding access to financial services across the country. The recent Fitch rating upgrade and our historic, record breaking Rs. 30 billion Tier II debenture issue, the largest ever in Sri Lanka’s capital market, further reinforce investor confidence in the Bank’s financial strength and resilience.
Customer service continues to be a top priority, and we remain committed to investing in technology, improving service delivery and enhancing the overall customer experience. As the Bankers to the Nation, we will continue to build a stronger, more resilient and future ready bank, creating sustainable value for our stakeholders while contributing meaningfully to Sri Lanka’s economic progress”.
Strong Financial Performance and Enhanced Operational Efficiency
During the first nine months of 2026, BOC continued to deliver resilient financial performance, supported by effective balance sheet management, disciplined funding strategies and sustained growth in its core banking operations.
Net Interest Income (NII) reached Rs. 169.2 billion, reflecting an 10% increase compared with the corresponding period of the previous year. Interest income increased by 6% to Rs. 390.8 billion, while interest expenses increased by 3% to Rs. 221.6 billion. This performance reflects the Bank’s continued focus on optimizing its earning assets, managing funding costs and maintaining an effective asset-liability position amid changing market conditions.
Net fee and commission income increased by 13% to Rs. 19.0 billion, supported by higher transaction volumes across card services, retail banking, digital payment channels and remittance services. The Bank's extensive customer base, established card business and continued investment in digital banking capabilities supported the growth in non-interest income, further diversifying its earnings base. Building on its earnings performance, total operating income increased by 10 % to Rs. 198.9 billion, while operating expenses amounted to Rs. 63.2 billion.
Operating profit before taxes on financial services reached Rs. 118.8 billion. After accounting for taxes on financial services amounting to Rs. 24.7 billion and income tax expenses of Rs. 35.4 billion, the Bank recorded a Profit Before Tax (PBT) of Rs. 94.1 billion and a Profit After Tax (PAT) of Rs. 58.7 billion respectively.
Extending its contribution beyond financial performance, BOC contributed Rs. 60.1 billion in direct taxes to the Government during the period, reaffirming its significant contribution to national revenue and economic stability.
Prudent Risk Management and Strengthened Asset Quality
BOC continued to maintain a prudent and proactive approach to credit risk management during the 3Q 2026, focusing on strengthening portfolio quality, maintaining adequate provisioning and managing credit exposures amid evolving economic conditions.
During the period, the Bank recognized an impairment charge of Rs. 16.8 billion on loans and advances, compared with Rs. 18.7 billion in the corresponding period of 2025. This reflects the Bank’s continued focus on assessing expected credit losses across lending segments and maintaining adequate provisioning buffers.
Asset quality remained a key priority, with the Stage 3 loan ratio (Net) standing at 4.97%. The Stage 3 provision coverage ratio stood at 61.70%, reflecting the Bank’s provisioning strength and continued focus on maintaining portfolio resilience.
Strengthened credit evaluation, proactive portfolio monitoring, enhanced recovery mechanisms and disciplined lending practices continued to support the Bank in effectively managing credit exposures and maintaining sound asset quality.
Robust Balance Sheet and Financial Position
As of 30 September 2026, BOC maintained a strong balance sheet, with total assets amounting to Rs. 5.9 trillion, reflecting a 7% increase YTD. This growth demonstrates the Bank’s sustainable growth in balance sheet and effective management of its asset portfolio.
Gross loans and advances stood at Rs. 2.9 trillion, reflecting the Bank’s continued support for economic activities across key sectors. The deposit base reached Rs. 4.8 trillion, representing an 8% increase YTD, demonstrating sustained customer confidence and the Bank’s strong deposit mobilization capabilities.
The Bank's substantial balance sheet capacity, diversified funding base and extensive customer portfolio continued to reinforce its financial strength and ability to support the financing requirements of individuals, businesses and the wider economy.
Key Performance Indicators, Capital Adequacy and Liquidity
BOC maintained strong financial and prudential indicators during the first nine months of 2026, reflecting its sustained profitability, efficient utilization of capital and sound liquidity management.
The Bank recorded a Return on Assets (ROA) of 2.21% and a Return on Equity (ROE) of 19.69%, demonstrating its ability to generate returns from its asset and capital base. The Bank remained reasonably capitalized, with Tier I Capital Adequacy Ratio of 13.21% and Total Capital Adequacy Ratio of 16.73%, comfortably maintaining the applicable regulatory capital requirements. Liquidity remained robust, with the Rupee Liquidity Coverage Ratio (LCR) at 243.00% and all-currency LCR at 231.51%, both comfortably above the minimum regulatory thresholds. These indicators underscore BOC’s strong position, liquidity resilience and capacity to meet its financial obligations while supporting future business growth.
The General Manager/ Chief Executive Officer, Mr. Y A Jayathilaka, stated, “Our performance during the third quarter of 2026 too reflects the strength of our execution, disciplined management and continued focus on delivering sustainable business growth. We remain committed to enhancing operational efficiency, strengthening asset quality and maintaining a resilient balance sheet while responding proactively to evolving market conditions. Digital transformation remains a key strategic priority, as we continue to advance innovative solutions such as BOC Flex, Tap & Pay and SmartPay QR to redefine customer convenience and deliver seamless banking experiences. Looking ahead, we will continue to leveraging technology, strengthen our service capabilities and develop customer-centric solutions while maintaining the highest standards of operational excellence and responsible banking.”
Strengthening Credit Ratings and Investor Confidence
BOC achieved significant milestones during 2026, further strengthening its institutional standing and confidence among local and international stakeholders.
Fitch Ratings upgraded BOC’s National Long-Term Rating to ‘AA+(lka)’ from ‘AA-(lka)’, with a Stable Outlook, following the recalibration of Sri Lanka’s national rating scale with the upgrade of the Bank’s International Credit Ratings to ‘ B-/Stable’. This improvement reflects the Bank’s established market position, strong deposit base and financial resilience, further reinforcing its standing within the domestic banking sector.
In another landmark achievement, BOC successfully concluded Sri Lanka’s largest-ever listed debenture issue, with a maximum issuance amount of Rs. 30.0 billion. This Basel III-compliant Tier II subordinated debenture issue, initially offered at Rs. 10.0 billion with the option to increase the issuance amount to Rs. 30.0 billion, oversubscribed, reflecting strong investor confidence in the Bank’s financial strength, credibility and long-term prospects.
The successful response to this landmark issue further strengthens the Bank’s regulatory capital base and enhances its capacity to support future business expansion, lending activities and the financing requirements of productive sectors of the economy.
Advancing Digital Banking and Financial Inclusion
BOC continued to strengthen its digital banking ecosystem, focusing on customer convenience, secure transactions and wider accessibility to financial services. The recent introduction of BOC CFlex, Tap & Pay, and mobile banking wallet-based contactless payment solution, enabling customers to make convenient and secure payments through their smart phones.
Alongside its digital transformation agenda, BOC continued to expand financial inclusion through its extensive branch network, BOC Connect Agent Banking Network and targeted programmes for SMEs, agricultural communities, youth and women entrepreneurs. These initiatives reflect the Bank’s commitment to extending financial services to underserved communities and supporting inclusive economic development.
Recognition and Brand Leadership
BOC continued to strengthen its position in the local and international banking landscape through distinguished recognition for its brand value, financial strength and digital banking innovation.
The Bank was recognized as Sri Lanka’s No. 1 Brand and Most Valuable Brand by Brand Finance Lanka in 2026, with a brand value of Rs. 65.5 billion. The Banking 500 Report 2026 published by Brand Finance placed BOC among the Top 500 Banking Brands globally, making it the only Sri Lankan bank to achieve this recognition. Further strengthening its global presence, it also ranked among the Top 1,000 World Banks by The Banker (UK). The BOC FLEX App also secured three awards at the Digital CX Awards 2026 in Singapore, reinforcing the Bank’s leadership in digital banking innovation and customer experience.
BOC maintains a widespread domestic network of over 2,500 direct customer touchpoints, including fully equipped and mobile branches, SME centers, ATMs, CRMs and the BOC Connect Agent Network. Internationally, the Bank extends its presence through branches in India, Maldives and Seychelles, a limited-services branch in Hulhumale and a fully owned subsidiary in London, United Kingdom.
Looking Ahead with Confidence
Building on 87 years of trust, financial strength and an enduring commitment to the nation, BOC remains well positioned to support Sri Lanka’s next phase of economic growth. With a strong financial foundation, growing investor confidence and an extensive nationwide presence, the Bank will continue to drive sustainable business growth, strengthen customer relationships and advance digital and financial inclusion. As the Bankers to the Nation, BOC remains committed to transforming opportunities into lasting value and contributing to a stronger, more prosperous Sri Lanka.
