The Commercial Bank of Ceylon has reached a significant milestone in 2025 by becoming the first private sector bank in the country to expand its loan book beyond Rs. 2 trillion. Over the year, the bank’s loan portfolio grew by Rs. 541 billion, averaging over Rs. 45 billion monthly, underscoring its dedication to national economic recovery.

In a record-breaking achievement, the bank reported a 36.37% increase in gross loans and advances, reaching Rs. 2.028 trillion by the end of December 2025. This growth propelled the total assets to Rs. 3.258 trillion, marking a 16.78% increase of Rs. 468 billion, more than doubling the growth recorded in 2024. The net asset value per share also improved to Rs. 198.30 from Rs. 170.94 at the end of 2024.

Deposits rose by 16.65%, or Rs. 372 billion, over the year, reaching Rs. 2.6 trillion, with an average monthly growth of over Rs. 30 billion, despite relatively lower interest rates. The bank’s Current and Savings Account (CASA) ratio, considered the industry’s best, improved from 38.07% to 39.65% by the year-end.

Commenting on the 2025 performance, Mr. Sharhan Muhseen, Chairman of Commercial Bank, stated, “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, added, “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.”

According to a filing with the Colombo Stock Exchange (CSE), the bank recorded a gross income of Rs. 354.81 billion for the year ending December 31, 2025, reflecting a 13.70% increase over the normalized 2024 figure, adjusted for the impacts of restructuring Sri Lanka International Sovereign Bonds (SLISBs). The bank’s net interest income rose by 18.97% to Rs. 136.29 billion, with interest income growing by 8.91% and interest expenses increasing by 1.47%.

Net fee and commission income rose by 22.05% to Rs. 27.50 billion, driven by increased income from credit and debit card-related services and commission income from loans, advances, and deposit-related services. Other income saw a significant rise of 119.77% to Rs. 20.24 billion. Total operating income improved by 81.87% to Rs. 184.03 billion, while impairment charges and other losses amounted to Rs. 22.51 billion, reflecting a decrease of 19.33% from the previous year’s normalized figure.

The bank posted a net operating income of Rs. 161.52 billion, an improvement of 36.42% over the normalized 2024 figure. Operating expenses increased by 9.94% to Rs. 54.59 billion, resulting in a substantial 55.55% growth in operating profit before taxes on financial services, reaching Rs. 106.93 billion.

Taxes on financial services decreased by 10.46%, leading to a profit before income tax of Rs. 89.38 billion for the year, reflecting a 56.95% increase over the 2024 normalized figure. Income tax expenses decreased by 25.50% to Rs. 30.89 billion, resulting in a net profit of Rs. 58.49 billion, an improvement of 44.05% over the previous year.

At the group level, Commercial Bank of Ceylon PLC, along with its subsidiaries and an associate, reported a consolidated profit before tax of Rs. 92.79 billion and a profit after tax of Rs. 60.94 billion, marking a 9.43% increase from 2024. The bank’s overseas operations, particularly in Bangladesh and the Maldives, contributed significantly as a key foreign income generator.

The bank’s Tier 1 and Total Capital Ratios were 13.035% and 16.698%, respectively, as of December 31, 2025, comfortably above the statutory minimum ratios. The net interest margin increased to 4.51%, while the return on assets (before tax) stood at 2.96%. The return on equity was 19.51%, with the cost-to-income ratio improving to 29.66% excluding taxes on financial services.

Asset quality also improved, with the net impaired loans (Stage 3) ratio reducing to 1.54%, and the impairment (Stage 3) to Stage 3 loans ratio improving to 73.50%. Commercial Bank remains a leader in digital innovation, being Sri Lanka’s first 100% carbon-neutral bank, and operates an extensive network of branches and automated machines both locally and internationally.