ComBank takes lending to new levels in mission-focused 2025

• Becomes first private sector bank with loan book of more than Rs. 2 Tn.

• Grows the loan book by Rs. 541 Bn. in 2025, averaging over Rs. 45 Bn. per month

• Doubles annual asset growth of the Bank compared to growth reported in 2024

• Deposits grow by Rs. 372 Bn.; CASA ratio improves to 39.65%

• Net interest income up 18.97% to Rs. 136.29 Bn.

The Commercial Bank of Ceylon achieved another performance milestone in 2025, becoming the first private sector bank in the country to expand its loan book beyond Rs. 2 Tn., with a growth of Rs. 541 Bn. over 12 months at a monthly average of over Rs. 45 Bn., demonstrating its commitment to national economic resurgence.

Recording the highest annual loan growth in absolute terms in the history of the institution, the Bank said gross loans and advances for the year ending 31st December 2025 grew by 36.37% to Rs. 2.028 Tn., taking total assets to Rs. 3.258 Tn. This reflected an increase of Rs. 468 Bn. or 16.78% and demonstrated more than double the growth recorded in 2024. The Bank’s net assets value per share improved to Rs. 198.30 from Rs. 170.94 at end 2024.

Deposits grew by 16.65% or Rs. 372 Bn. over the 12 months to end the year at Rs. 2.6 Tn., reflecting an average deposit growth of over Rs. 30 Bn. per month despite relatively lower interest rates, the Bank said. The CASA ratio of the Bank, which is considered to be the industry’s best, stood at 39.65% from 38.07% as at 31st December 2024.  

Commenting on the Bank’s performance in 2025, Mr Sharhan Muhseen, Chairman of Commercial Bank said: “We remain focused on the fundamentals that sustain shareholder value: earnings resilience, balance sheet strength, disciplined risk management and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.”

Mr Sanath Manatunge, Managing Director/CEO of Commercial Bank said: “In 2025, we proved that scale and discipline can move together, growing lending and accelerating digital activity while strengthening asset quality and balance sheet resilience. This is how we build durable value, supporting productive growth without compromising governance and risk standards.”

In a filing with the Colombo Stock Exchange (CSE) the Bank said it recorded gross income of Rs. 354.81 Bn. for the year ending 31st December 2025 reflecting growth of 13.70% over the normalised figure for 2024, after adjusting for the impacts of restructuring of Sri Lanka International Sovereign Bonds (SLISBs) accommodated in that year, in order to avoid potential distortion of growth figures. Net gains / (losses) from derecognition of financial assets in the Income Statement for 2024 (as reported) included a derecognition loss on restructuring of SLISBs amounting to Rs. 45.108 Bn.   

On the same basis, interest income for the 12 months grew by 8.91% to Rs. 293.61 Bn. helped by substantial growth in the Bank’s loan book. Interest expenses grew by a nominal 1.47% to Rs. 157.32 Bn., enabling the Bank to post a net interest income of Rs. 136.29 Bn., an increase of 18.97%.

The Bank reported net fee and commission income of Rs. 27.50 Bn. for the year, an improvement of 22.05%, with increased income from credit and debit card-related services and commission income from loans & advances and deposits related services as the main contributors to this growth. Other income grew by 119.77% to Rs. 20.24 Bn. after adjusting for the impact of Rs. 45.108 Bn. on debt restructuring on the 2024 figure. Net other operating income including exchange profit on revaluation of assets and liabilities increased by 134.43% to Rs. 17.16 Bn. from the normalised 2024 figure of Rs. 7.32 Bn.

Total operating income improved by 81.87% to Rs. 184.03 Bn. and the Bank’s impairment charges and other losses amounted to Rs. 22.51 Bn. for the year under review. In 2024, the Bank increased its provisioning for impairment on a prudential basis for loans and advances, as a consequence of which impairment charges for 2025 reflected a drop of 19.33% over the previous year’s normalised figure of Rs. 27.90 Bn. Impairment charges and other losses for 2024 included a reversal of Rs. 87.215 Bn. on restructuring of SLISBs (as reported).   

As a result, the Bank posted a net operating income of Rs. 161.52 Bn. for the 12 months, an improvement of 36.42% over the normalised figure for 2024. Operating expenses, at Rs. 54.59 Bn., increased by only 9.94% due to prudent cost management initiatives, resulting in operating profit before taxes on financial services growing by a noteworthy 55.55% to Rs. 106.93 Bn. over the normalised figure for 2024.

Taxes on financial services decreased by 10.46% to Rs. 17.55 Bn., generating profit before income tax of Rs. 89.38 Bn. for the year, reflecting a growth of 56.95% over 2024’s normalised figure. Income tax decreased by 25.50% to Rs. 30.89 Bn., resulting in a net profit of Rs. 58.49 Bn. for the Bank in 2025, an improvement of 44.05% over 2024’s normalised figure. Taxes on financial services and Income tax for 2024 (as reported) increased by Rs. 7.807 Bn. and Rs. 25.115 Bn. respectively due to the effect of derecognition loss on restructuring of SLISBs amounting to Rs. 45.108 Bn. recorded in Net gains/(losses) from derecognition of financial assets and a reversal in impairment charges and other losses amounting to Rs. 87.215 Bn. upon restructuring of SLISBs. 

At group level, Commercial Bank of Ceylon PLC, its subsidiaries and an associate, posted a consolidated profit before tax of Rs. 92.79 Bn., compared to Rs. 97.81 Bn. recorded in 2024, and profit after tax of Rs. 60.94 Bn., compared to Rs. 55.69 Bn. reported for the year 2024, which was an increase of 9.43%.

The Bank said it continued to be a key foreign income generator in the country with a notable contribution from its overseas operations, primarily from Bangladesh and the Maldives.

In other key performance indicators, the Bank’s Tier 1 and Total Capital Ratios stood at 13.035% and 16.698% respectively as at 31st December 2025, both comfortably above the statutory minimum ratios of 10% and 14% respectively applicable to the Bank, despite the substantial growth in the Bank’s loan book.

In terms of profitability, the Bank’s net interest margin increased to 4.51% for the year ending 31st December 2025 compared to 4.27% reported at end 2024 and 3.32% at end 2023. The Bank’s return on assets (before tax) stood at 2.96% compared to the normalised figure of 2.12% for 2024, while the return on equity stood at 19.51% compared to 22.06% and the normalised figure of 16.57% as at 31st December 2024.

The Bank’s cost-to-income ratio excluding taxes on financial services stood at 29.66%, as against the normalised ratio of 33.94% for 2024, while the figure inclusive of taxes on financial services was 39.20% for the year, in comparison with the normalised ratio of 42.00% for the preceding year.

In terms of asset quality, the Bank’s net impaired loans (Stage 3) ratio improved further to 1.54% from 1.79% at the end of September 2025 and 2.76% a year ago, while its impairment (Stage 3) to Stage 3 loans ratio for the year improved to 73.50% from 71.43% at end of Q3, and 64.61% as at 31st December 2024.

Commercial Bank is the first Sri Lankan bank with a market capitalisation exceeding US$ 1 Bn. and was also the first bank in the country to be listed among the Top 1000 Banks of the World.  Commercial Bank has the highest capital base among all Sri Lankan banks, is the largest private sector lender in Sri Lanka, and the largest lender to the country’s SME sector.  Ranked No. 1 in the Business Today Top 40, Commercial Bank is recognised as the most respected and most-awarded Bank in Sri Lanka. Commercial Bank is also a leader in digital innovation and is Sri Lanka’s first 100% carbon-neutral bank.

Commercial Bank operates a network of 272 strategically located branches and automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 20 branches in Bangladesh, a fully-fledged Tier I Bank with a majority stake in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s fully owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also deliver a range of financial services via their own branch networks.

Photo caption:

Mr. Sharhan Muhseen, Chairman, and Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank.