BOC records Rs. 106.9 Bn profit in 2024

Bank of Ceylon (BOC), achieved robust financial results in 2024, demonstrating both resilience and persistence.

The General Manager / Chief Executive Officer, Russel Fonseka emphasized, “Our robust financial results demonstrate our strength and stability in this challenging economic climate.”

Bank of Ceylon Chairman, Kavinda de Zoysa said, “Together, we will uphold the Bank’s legacy, reinforcing its position as the largest financial institution in Sri Lanka, fulfilling our responsibility as Bankers to the Nation through sustainable growth, prudent risk management and strengthened governance.

The Bank successfully repriced its assets and liabilities, leading to a momentous 84% increase in net interest income to Rs. 167.6 billion compared to Rs. 91.2 billion in 2023. The Bank reported total operating income of Rs. 182.0 billion, reflecting a significant growth of 81% compared to the previous year. Operating expenses amounted to Rs. 67.1 billion, marking a 28% YoY increase, which was mainly due to increased personnel costs (35%) and other overhead expenses (21%).

The Bank’s operating profit before taxes on financial services reached Rs. 135.3 billion, a remarkable 155% enhancement over the preceding year. PBT stood at Rs. 106.9 billion compared to Rs. 40.3 billion in 2023, reflecting a 165% notable growth. Income tax expenses for the year amounted to Rs. 42.5 billion, resulting in a profit after tax of Rs. 64.4 billion. Total taxes for the year amounted to Rs. 70.9 billion.

As of December 31, 2024, BOC’s total assets reached Rs. 4,985.1 billion and Group’s total assets reached to Rs. 5,048.7 billion, reflecting a notable growth of 13% compared to the end 2023. Gross loans and advances amounted to Rs. 2,436.2 billion as of December 31, 2024 despite a slight drop of 1% in the loan book stemming from LKR appreciation of 10% and sluggish credit demand.

The Bank’s deposit base stood strong at Rs. 4,208.6 billion as of December 31, 2024 with a remarkable growth of 8% despite the appreciation of the LKR, showcasing sustained customer confidence and the Bank’s strategic focus on deposit mobilization.

Additionally, BOC raised Rs. 15.0 billion in Basel III compliant Tier II capital via debenture issue during the year to strengthen the capital base of the Bank. The Return on Assets (ROA) before tax improved to 2.28% from 0.92% in 2023 and the Return on Equity (ROE) after tax significantly to 23.23% from 10.55% in 2023, reflecting enhanced profitability from the Bank’s asset base. The interest margin also increased to 3.57% from 2.08% in 2023, highlighting effective management of interest-earning assets and liabilities.

Fitch Ratings has recently upgraded the National Long-Term Rating at ‘AA-(lka)’ and the Long Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’.

 Source:Daily News