Bank of Ceylon (BOC) concluded the financial year ending December 31, 2025, with remarkable achievements, posting a Profit After Tax (PAT) of Rs. 76.0 billion, an 18% increase from the previous year. The Profit Before Tax (PBT) reached Rs. 120.8 billion. This year marked a significant shift towards sustainable and inclusive banking, driven by strategic initiatives in green finance, social development, and digital innovation, contributing to both economic and environmental impacts. BOC’s performance underscores its commitment to delivering robust returns for stakeholders while advocating for sustainable development that supports Sri Lanka’s long-term economic and social resilience.
BOC Chairman, Mr. Kavinda de Zoysa, stated, “2025 stands as another record-breaking milestone year for BOC, reflecting our resilience, strategic focus, and unwavering commitment to national progress. Our strong financial performance this year demonstrates the discipline with which we have navigated a transforming economic landscape, ensuring stability, sustainable growth, and long-term value creation for our stakeholders. During the year, we further strengthened our commitment to sustainable finance through the successful issuance of a Rs. 20 billion Basel III-compliant Tier II Sustainability Bond. This initiative enhances our capital base while enabling greater support for sustainability, SME development, and inclusive community investments. As we look ahead, our vision remains clear to accelerate digital transformation, deepen financial inclusion, and strengthen our environmental and social governance framework while maintaining robust profitability and balance sheet resilience.
BOC is well-positioned to lead Sri Lanka’s transition towards a greener, more inclusive, and globally competitive future guided by purpose, strengthened by performance, and driven by innovation.”
Revenue Momentum Backed by Core Banking Strength
BOC closed the year 2025 with exceptional financial momentum, reflecting disciplined execution, strategic growth, and a commitment to sustainable banking. The Bank reported Total Operating Income of Rs. 246.8 billion, a 36% increase compared to the previous year, driven by strong growth in both interest and non-interest income, underscoring the Bank’s ability to sustain profitability while maintaining long-term resilience.
Net Interest Income (NII) rose by 24% to Rs. 206.9 billion, propelled by effective asset-liability management, improved interest margins, and optimized funding strategies. Interest income grew by 8% to Rs. 496.2 billion, while interest expenses decreased slightly by 2% to Rs. 289.2 billion, reflecting disciplined balance sheet management.
Diversified income streams further strengthened the Bank’s performance. Net fee and commission income increased by 12% to Rs. 23.1 billion, supported by higher digital transactions, card services, trade finance, and remittance flows, reinforcing revenue stability and sustainability.
Operational Excellence Enhancing Profitability
Total operating expenses increased moderately by 9% to Rs. 73.0 billion, largely due to strategic investments in technology, human capital, and service infrastructure aimed at enhancing customer experience and operational efficiency. Revenue growth significantly outpaced the increase in operating expenses, resulting in an Operating Profit Before Taxes on Financial Services of Rs. 152.7 billion, a 13% increase compared to the previous year.
After accounting for taxes on financial services of Rs. 31.9 billion and income tax expenses of Rs. 44.8 billion, BOC achieved a Profit After Tax (PAT) of Rs. 76.0 billion. This strong bottom-line performance underscores the Bank’s ability to balance strategic investment with financial discipline, ensuring sustainable earnings growth and enhanced shareholder value.
The Acting General Manager/Chief Executive Officer, Mr. Y. A. Jayathilaka, commented, “Our performance in 2025 reflects the enduring trust of our customers and the dedication of our employees nationwide. Beyond strong financial results, this year is defined by how we have converted resilience into sustainable impact. We have embedded sustainability into our core strategy, expanding green financing, supporting responsible enterprises, and aligning growth with national development priorities. At the same time, we accelerated our digital transformation, strengthening cybersecurity, enhancing digital platforms, and delivering seamless, customer-centric banking solutions. As Sri Lanka advances toward economic renewal, BOC remains committed to responsible growth, digital innovation, and long-term value creation. Our focus is clear to drive sustainable progress for our stakeholders while playing a leading role in the nation’s transformation.”
Strengthened Asset Quality through Prudent Risk Management
In 2025, BOC continued to demonstrate robust credit risk management while expanding its lending portfolio. The Bank recorded an impairment charge of Rs. 20.7 billion on loans and advances, reflecting a prudent and forward-looking provisioning approach in response to evolving macroeconomic conditions and potential exposures from events such as Cyclone Ditwah.
The Stage 3 loan ratio improved to 5.59% from 7.17% in 2024, highlighting the Bank’s effective recovery initiatives, disciplined credit monitoring, and strengthened collection efforts. The Stage 3 provision coverage ratio strengthened to 57.91%, underscoring BOC’s commitment to conservative provisioning, portfolio quality, and long-term financial resilience.
Balance Sheet Expansion and Capital Strength
As of December 31, 2025, total assets exceeded Rs. 5.5 trillion, reflecting 10% growth compared to the previous year. Gross loans and advances increased to Rs. 2.6 trillion, while the deposit base expanded to Rs. 4.4 trillion, demonstrating sustained customer confidence and strong franchise value. Return on Assets (ROA) before tax improved to 2.31% from 2.28% in 2024. Return on Equity (ROE) after tax moderated slightly to 22.74% from 23.23% in 2024, reflecting enhanced capital strength. Net Interest Margin improved to 3.96% from 3.57%, highlighting effective management of interest-earning assets and liabilities. Capital adequacy ratios remained well above regulatory requirements, with a Common Equity Tier 1 ratio of 11.44% and a Total Capital Ratio of 16.89%. Liquidity coverage ratios for both rupee and all currencies remained comfortably above minimum thresholds, ensuring strong liquidity resilience.
Landmark Sustainability Bond to Strengthen Green and Social Lending
In 2025, BOC successfully issued its inaugural Rs. 20 billion Basel III-compliant Tier II Sustainability Bond, the largest sustainability bond issuance in Sri Lanka and the first by a state-owned bank. Proceeds will be used to finance eligible green and social projects, including renewable energy, sustainable agriculture, SMEs, healthcare, education, water management, and essential infrastructure. Independent external review and transparent reporting mechanisms ensure accountability and measurable impact.
Digital Transformation and Sustainable Innovation
BOC strengthened its digital transformation agenda with the establishment of Bank of Ceylon Information Technology Solutions (Pvt) Ltd., a wholly-owned subsidiary designed to enhance ICT capabilities and support future-ready banking services. As part of its sustainability initiatives, the Bank introduced Sri Lanka’s first biodegradable banking card, made from corn-based polylactic acid (PLA), providing an environmentally responsible alternative to conventional PVC cards. The Bank further strengthened financial inclusion by launching 50 new BOC Connect Agent Banking Centers and enhancing digital platforms such as BOC Flex and SmartPay, ensuring seamless access to modern banking services across urban and rural communities.
Corporate Citizenship and National Support
Demonstrating strong corporate responsibility, BOC contributed Rs. 500 million to the Government’s “Rebuilding Sri Lanka” Fund to support communities affected by Cyclone Ditwah. The Bank and its staff also provided emergency relief valued at around Rs. 50 million, reaffirming their commitment to national resilience.
Recognition and Brand Leadership
BOC was ranked as the top Sri Lankan Bank among the Top 1000 World Banks by The Banker (UK). The Bank was recognized as Sri Lanka’s No. 1 Brand and Most Valuable Brand by Brand Finance Lanka, with a brand value of Rs. 57.4 billion.
BOC maintains a robust domestic presence with a widespread network of over 2,300 direct customer touchpoints, including fully-equipped and mobile branches, SME centers, ATMs, CDMs, and CRMs, ensuring comprehensive financial accessibility across all provinces of the country, reinforcing its commitment to financial inclusion. Internationally, the Bank extends its presence through branches in India, Maldives, and Seychelles, a limited-services branch in Hulhumale, and a fully-owned subsidiary in London, United Kingdom, further strengthening its global footprint.
Fitch Ratings has affirmed the National Long-Term Rating at ‘AA-(lka)’ and the Long Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’ for Bank of Ceylon.
Outlook for 2026
Looking ahead to 2026, BOC remains firmly focused on accelerating sustainable growth through digital transformation, strengthened customer engagement, and strategic lending to priority sectors of the economy. Supported by a solid earnings foundation, resilient balance sheet, and disciplined risk governance framework, the Bank is well-positioned to capture emerging opportunities in a transforming financial landscape.
BOC is equally committed to delivering sustainable long-term value to its stakeholders, ensuring consistent returns through prudent capital management, enhanced profitability, and responsible growth strategies. By balancing financial performance with environmental and social responsibility, the Bank continues to safeguard stakeholder interests while contributing meaningfully to national development. As Sri Lanka advances along its recovery and growth trajectory, BOC remains well positioned to lead with confidence, innovation, and purpose, strengthening its legacy as the nation’s most trusted financial partner while shaping a more inclusive, resilient, and globally competitive future.
Photo Caption: Left: Mr. Kavinda de Zoysa, Chairman – BOC and Right: Mr. Y A Jayathilaka, Acting General Manager/Chief Executive Officer – BOC
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