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ComBank reports Rs. 16.74bn net profit in 3Q

Commercial Bank of Ceylon reported group net profit of Rs. 16.74 billion for the third quarter of 2026, down 0.7 percent from Rs. 16.86 billion a year earlier. Net interest income rose 19.3 percent to Rs. 41.36 billion.

Gross income increased 20 percent to Rs. 109.63 billion in the three months ended September 30. The bank attributed the increase mainly to growth in its loan book.

For the first nine months of the year, group net profit rose 8.6 percent to Rs. 52.16 billion, while gross income increased 18.9 percent to Rs. 318.79 billion. Net interest income rose 17 percent to Rs. 121.06 billion. Interest expense increased 23.6 percent to Rs. 145.92 billion, outpacing the 20.5 percent rise in interest income. The bank attributed the increase in interest expense to higher rates and deposit growth. Total operating income increased 14.4 percent to Rs. 160.33 billion over the nine months. Impairment charges and other losses rose 17.8 percent to Rs. 16.57 billion, while operating expenses increased 19.9 percent to Rs. 47.27 billion, reflecting higher staff costs and technology spending. The bank said provisioning for impairment and increased investment in expanding the business and strengthening its operations affected nine-month profit growth.

Operating profit before taxes on financial services rose 11.3 percent to Rs. 96.49 billion. Taxes on financial services increased 25.4 percent to Rs. 16.75 billion, leaving profit before income tax at Rs. 79.74 billion, up 8.7 percent. Group gross loans and advances increased by Rs. 348.37 billion, or 16.7 percent, from end-2025 to Rs. 2.43 trillion at September 30. The loan book was 27.6 percent larger than a year earlier. Group deposits rose 15.5 percent from end-2025 to Rs. 3.12 trillion, while total assets increased 14.7 percent to Rs. 3.87 trillion.

On a standalone basis, Commercial Bank’s nine-month net profit rose 7.6 percent to Rs. 49.54 billion, and its deposits crossed Rs. 3 trillion during the quarter. The bank’s annualised net interest margin fell to 4.45 percent from 4.51 percent at end-2025, which it attributed to higher deposit costs.

Current and savings accounts accounted for 37.08 percent of deposits at end-September, down from 39.65 percent at end-2025.

The bank’s gross impaired loan ratio fell to 5.31 percent from 5.81 percent at end-2025 and 6.25 percent a year earlier. Its net impaired loan ratio declined to 1.47 percent from 1.54 percent at end-2025, while provision coverage of impaired loans fell to 72.35 percent from 73.50 percent.

Commercial Bank’s Tier 1 capital ratio declined to 12.50 percent from 13.03 percent at end-2025, while its total capital ratio fell to 16.35 percent from 16.69 percent. Both remained above the regulatory minimums of 10 percent and 14 percent respectively. The bank attributed the declines to asset growth and the exclusion of third-quarter profit from the capital calculations