CommBank ups profit by 33.38% to Rs. 16.86 bn in 3Q

The Commercial Bank of Ceylon Group reported a gross income of Rs. 268.49 bn and net interest income of Rs. 103.48 bn at the end of the third quarter of 2025, with strong year-on-year loan growth of 34.60% and lower interest expenses contributing to an impressive nine-month performance.

Comprising Sri Lanka’s largest private sector bank, its subsidiaries and an associate, the Group said interest income grew by 6.96% to Rs. 221.53 bn for the nine months ending 30 September 2025, while interest expenses remained static at Rs. 118.05 bn due to lower funding costs and an improved CASA ratio.

Consequently, net interest income of Rs. 103.48 bn grew by 16.30% in contrast to the 11.08% growth in gross income.

“Our commitment to lending remains undiminished, because we believe that our capacity to support national economic growth targets must be fully leveraged within prudential limits,” said Sharhan Muhseen, Chairman of Commercial Bank.

Managing Director/CEO Sanath Manatunge said the Bank’s sustained loan book growth, focus on yield management and cost optimization helped post these strong results.

Total operating income rose by 21.41% to Rs. 140.49 bn, while impairment charges declined by 28.21% to Rs. 14.37 bn, as the previous year included additional provisioning for Sri Lanka International Sovereign Bonds. For the third quarter, total operating income improved by 24.13% to Rs. 47.74 bn.

Net operating income reached Rs. 126.13 bn, up 31.79%, while operating expenses grew only 8.00% to Rs. 39.41 bn, leading to a 46.46% increase in operating profit before taxes on financial services to Rs. 86.71 bn.

Taxes on financial services rose 50.72% to Rs. 13.36 bn, resulting in profit before income tax of Rs. 73.35 bn, up 45.71%. Income tax grew by 34.71% to Rs. 25.33 bn, yielding a net profit of Rs. 48.02 bn for the nine months, a 52.27% rise. The Group’s 3Q profit was Rs. 16.86 bn, up 33.38%.

Commercial Bank PLC recorded profit before tax of Rs. 70.57 bn and after tax of Rs. 46.02 bn, growing 44.83% and 51.51% respectively.

Total assets rose by Rs. 357 bn or 12.40% to Rs. 3.233 trillion as at 30 September 2025, while deposits grew 12.26% to Rs. 2.589 tn, with YoY growth of 16.27%.