The Commercial Bank of Ceylon PLC, along with its subsidiaries, has achieved a significant milestone by surpassing Rs. 3.5 trillion in assets, making it the first private banking group in Sri Lanka to reach this benchmark during the first quarter of 2026.
As of March 31, 2026, the Commercial Bank Group reported total assets amounting to Rs. 3.61 trillion, reflecting an increase of Rs. 230 billion, or 6.81%, over the first quarter. Year-on-year, asset growth totaled Rs. 610 billion, equating to a 20.34% rise.
This growth can be attributed to an increase in gross loans and advances, which rose by Rs. 71.61 billion during the quarter to reach Rs. 2.16 trillion, averaging Rs. 23.87 billion monthly. Additionally, deposits grew by Rs. 171.14 billion, averaging Rs. 57.05 billion per month, resulting in a total of Rs. 2.87 trillion as of March 31, 2026. Year-on-year, the loan portfolio grew by 31.35%, while deposits saw a 19.04% increase.
Consequently, the Group’s net asset value per share improved to Rs. 203.34, up from Rs. 173.84 a year earlier.
Reflecting on the Group’s performance, Mr. Sharhan Muhseen, Chairman of Commercial Bank, stated, “We have made a strong and balanced start to 2026. It is encouraging to see the sustained momentum from our focus on strengthening our balance sheet and disciplined risk management, which is supported by the buffers established in 2025. We will continue to enhance the fundamentals that drive shareholder value in the coming year.”
Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank, emphasized the Group’s continued robust growth, with provision coverage exceeding 75%. This positions the bank well against risks presented by a fluctuating global economy while achieving a CASA ratio surpassing 40%, the highest in the sector. “Our commitment to sustainability, governance, compliance, and national economic priorities remains strong, ensuring that we consider the interests of all stakeholders in our growth strategy,” he noted.
During the quarter, gross income rose by 12.47% to Rs. 99 billion, with interest income increasing by 14.17% to Rs. 82.89 billion, primarily driven by loans. Interest expenses also rose by 14.82% to Rs. 44.07 billion due to higher interest rates and increased volumes, which led to a net interest income growth of 13.44%, amounting to Rs. 38.81 billion for the period.
Total operating income grew by 9.25% to Rs. 50.84 billion, while provisions for impairment charges fell to Rs. 3.18 billion from Rs. 7.15 billion in the same quarter of 2025, reflecting the higher prudential provisioning made previously. The Group remains vigilant in identifying sectors vulnerable to local and global economic challenges, ensuring adequate provisions through careful management.
As a result, net operating income for the quarter reached Rs. 47.66 billion, marking a 21% increase. Operating expenses also grew by 15.81% to Rs. 14.83 billion, leading to an operating profit before taxes on financial services of Rs. 32.84 billion, an increase of 23.51%.
Taxes on financial services rose by 29.12% to Rs. 5.20 billion, contributing to a pre-tax profit of Rs. 27.63 billion for the quarter, which reflects a growth of 22.51%. With income tax expenses increasing by 27.84% to Rs. 9.70 billion, the Group reported a net profit of Rs. 17.94 billion for the quarter, indicating a 19.80% increase in earnings.
On a separate basis, Commercial Bank of Ceylon PLC declared a pre-tax profit of Rs. 26.64 billion and an after-tax profit of Rs. 17.17 billion for the quarter, achieving year-on-year growths of 21.76% and 18.46%, respectively.
In terms of key performance indicators, the Bank’s Tier 1 Capital Ratio was 13.32% as of March 31, 2026, while the Total Capital Ratio was 16.85%, both exceeding the regulatory minimum requirements of 10% and 14%, respectively.
The Bank’s liquidity coverage ratio for the reviewed quarter was an impressive 368.83% for Rupees and 282.77% for all currencies, far surpassing the statutory minimum of 100%. Additionally, the net stable funding ratio stood at 165.35% as of March 31, 2026, also significantly above the required 100%.
Regarding profitability, the Bank’s net interest margin was recorded at 4.50% for the quarter, slightly down from 4.51% at the end of 2025 and 4.74% a year earlier. The return on assets (before tax) improved to 3.21%, compared to 2.96% at the end of 2025 and 3.12% a year prior, while the return on equity rose to 21.37% from 19.51% at the end of 2025.
The Bank’s cost-to-income ratio, excluding taxes on financial services, was 29.03%, down from 29.66% in 2025. When including taxes on financial services, the ratio for the quarter was 39.60%, compared to 39.20% in the previous year.
In terms of asset quality, the Bank’s impaired loans ratio improved to 1.34%, down from 1.54% at the end of 2025. The ratio of impairment to Stage 3 loans also improved to 75.04% as of March 31, 2026, up from 73.50% at the end of December 2025.
Commercial Bank is notable for being the first Sri Lankan bank with a market capitalization exceeding US$ 1 billion and was the first bank in the country to be included in the Top 1000 Banks of the World. It boasts the largest capital base among Sri Lankan banks, is the leading private sector lender in the country, and is the foremost lender to the SME sector. Ranked as the top bank in the Business Today Top 40, Commercial Bank is recognized for its excellence and numerous awards. It is also at the forefront of digital innovation and is Sri Lanka’s first fully carbon-neutral bank.
With over 270 strategically located branches and an extensive network of automated machines throughout the country, Commercial Bank maintains the widest international presence among Sri Lankan banks, including 21 branches in Bangladesh, a fully operational Tier I Bank with a majority stake in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). Its fully-owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also provide a variety of financial services through their own branch networks.
Photo caption: Mr. Sharhan Muhseen, Chairman, and Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
