Q1-2026: BOC records Rs 28.8 b PBT

Bank of Ceylon (BOC), state-owned Sri Lankan bank, recorded a Profit After Tax (PAT) of Rs 18.8 billion (b) for the three months ended 31 March 2026. 

Bank of Ceylon Chairperson Kavinda de Zoysa, stated: “The Q1 2026 reflects the Bank’s continued resilience and disciplined execution in a gradually improving economic environment, underpinned by a strong financial performance and a clear strategic focus on sustainability and digital transformation. Building on the strong momentum of 2025, the Bank has further strengthened its core fundamentals through operational excellence, prudent risk management, and innovation-led growth initiatives despite global challenges arising from the Middle East war. Looking ahead, the Bank remains firmly committed to further strengthening our balance sheet, capital (CAR), liquidity and controls while accelerating its digital agenda, deepening sustainable finance, and reinforcing governance standards to deliver long-term value creation and sustained, inclusive growth throughout the year.”

In Q1 2026, Net Interest Income (NII) stood at Rs 52.9 b, supported by effective asset-liability management and optimised funding strategies amid a gradually stabilising interest rate environment. Interest income rose moderately by 3% YOY to Rs 125.2 b, reflecting the Bank’s strategic agility and sound fund management, enabling it to deliver strong performance despite the prevailing low interest rate regime.

Strengthening the Bank’s revenue base further, net fee and commission income grew by an impressive 22% YOY to Rs 6.3 b, driven by increased transaction volumes across card services, retail banking, remittances, and growing customer adoption of digital banking platforms. The continued expansion of value-added digital solutions, together with the strong market presence of the Bank’s card services through attractive rewards and promotional offerings, contributed positively to business growth and customer engagement.

The Bank delivered a solid financial performance, recording total operating income of Rs 61.5 b, 8% YOY increase driven primarily by robust growth in net interest income and net fee and commission income. Operating expenses stood at Rs 17.2 b, reflecting 4% increase compared to the corresponding period of the previous year, while the Bank continued to enhance operational efficiency, resulting in an improved cost-to-income ratio of 32.1%.

Operating profit before taxes on financial services reached to Rs 36.3 b. After accounting for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL), the Bank reported a Profit Before Tax (PBT) of Rs 28.8 b, underscoring its resilience and effective strategic execution in a challenging operating environment. Income tax expenses for the period amounted to Rs 10.0 b, resulting in a Profit After Tax (PAT) of Rs 18.8 b. Total tax contributions to the Government stood at Rs 17.5 b, highlighting the Bank’s significant contribution to national revenue as a state-owned financial institution.

BOC General Manager/Chief Executive Officer Y A Jayathilaka commented: “Our performance in the Q1 2026 demonstrates steady business progress, anchored in disciplined execution and strong institutional stability, while benefiting from continued customer confidence and focused execution of strategic priorities. During the period, the Bank sustained its transformation journey with greater emphasis on digital enablement, operational efficiency, and enhanced customer-centric service delivery, further reinforcing its competitive positioning. At the same time, prudent financial management and robust governance practices continued to safeguard balance sheet strength and support sustainable outcomes. Looking ahead, the Bank will continue to build on this foundation by driving innovation-led growth, expanding digital capabilities, and supporting broader economic development with a clear focus on long-term resilience and value creation.”

Source: The morning