The Commercial Bank of Ceylon PLC, along with its subsidiaries, has achieved a significant milestone by becoming the first private banking group in Sri Lanka to surpass Rs. 3.5 trillion in total assets during the first quarter of 2026. This accomplishment is among several highlights as the bank builds on its record-breaking performance from the previous year.
As of March 31, 2026, the Commercial Bank Group reported total assets of Rs. 3.61 trillion, reflecting an increase of Rs. 230 billion or 6.81% in just three months. Year-on-year, the asset growth amounted to Rs. 610 billion, translating to a 20.34% rise.
The impressive growth can be attributed to a boost 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 surged by Rs. 171.14 billion, averaging Rs. 57.05 billion per month, bringing the total to Rs. 2.87 trillion as of March 31, 2026. Consequently, the Group experienced a year-on-year growth of 31.35% in loans and 19.04% in deposits.
As a result, the net asset value per share rose to Rs. 203.34, up from Rs. 173.84 the previous year.
Mr. Sharhan Muhseen, the Chairman of Commercial Bank, remarked on the Group’s strong start to 2026, noting the successful continuation of their focus on balance sheet stability and prudent risk management, which has been supported by the solid foundations established in 2025. He expressed commitment to enhancing shareholder value in the coming year.
Mr. Sanath Manatunge, Managing Director and CEO, highlighted the Group’s robust growth, particularly in improving provision coverage to over 75%, which aligns with the risks presented by an unpredictable global economy. He also pointed out the achievement of a CASA (Current Account, Savings Account) ratio exceeding 40%, the highest in the industry. He emphasized the Group’s dedication to sustainability and governance, ensuring that the interests of all stakeholders are prioritized in their growth strategy.
During the quarter, the Group’s gross income grew by 12.47% to Rs. 99 billion, with interest income up by 14.17% to Rs. 82.89 billion. The majority of this income was derived from loans. Interest expenses rose by 14.82% to Rs. 44.07 billion due to increased interest rates and volume growth, leading to a net interest income of Rs. 38.81 billion, marking a 13.44% increase.
Total operating income climbed by 9.25% to Rs. 50.84 billion, while the provision for impairment and other losses decreased to Rs. 3.18 billion, down from Rs. 7.15 billion in the same quarter last year. This reduction reflects the higher provisioning levels recorded previously. The Group remains vigilant in identifying sectors vulnerable to economic fluctuations, ensuring that adequate provisions are maintained through careful management.
As a result, net operating income for the quarter stood at Rs. 47.66 billion, representing a growth of 21%. Operating expenses increased by 15.81% to Rs. 14.83 billion, resulting in an operating profit before tax of Rs. 32.84 billion, an increase of 23.51%.
Taxes on financial services rose by 29.12% to Rs. 5.20 billion, producing a profit before tax of Rs. 27.63 billion for the quarter, which is a growth of 22.51%. After accounting for income tax, which increased by 27.84% to Rs. 9.70 billion, the Group reported a net profit of Rs. 17.94 billion for the quarter, reflecting a 19.80% increase.
Focusing on the Commercial Bank of Ceylon PLC specifically, it reported a profit before tax of Rs. 26.64 billion and a profit after tax of Rs. 17.17 billion for the quarter, with year-on-year growth rates of 21.76% and 18.46%, respectively.
The Bank’s performance ratios as of March 31, 2026, included a Tier 1 Capital Ratio of 13.32% and a Total Capital Ratio of 16.85%, both of which exceed the regulatory minimums of 10% and 14%, respectively.
Furthermore, the liquidity coverage ratio for the quarter was significantly high at 368.83% for Rupees and 282.77% for all currencies, well above the required minimum of 100%. The net stable funding ratio was 165.35% as of March 31, 2026, also exceeding the statutory requirement.
The Bank’s net interest margin for the quarter was 4.50%, slightly down from 4.51% at the end of 2025 and from 4.74% a year prior. The return on assets (before tax) improved to 3.21%, up from 2.96% at the end of 2025 and 3.12% the previous year, while the return on equity increased to 21.37% from 19.51% at the end of 2025.
The cost-to-income ratio, excluding taxes on financial services, was recorded at 29.03%, compared to 29.66% in 2025. When including taxes, the ratio for the quarter was 39.60%, slightly up from 39.20% year-on-year.
Regarding asset quality, the Bank’s impaired loans ratio (Stage 3) improved to 1.34%, down from 1.54% at the end of 2025. The impairment (Stage 3) to Stage 3 loans ratio also improved to 75.04% as of March 31, 2026, up from 73.50% at the end of the previous year.
Commercial Bank holds the distinction of being the first Sri Lankan bank with a market capitalization exceeding US$ 1 billion, and was the first to be listed among the Top 1000 Banks in the World. With the largest capital base among local banks, it leads the private sector lending in Sri Lanka and is the foremost lender to the SME sector. Recognized as the most respected and awarded bank in Sri Lanka, Commercial Bank is also a pioneer in digital innovation and the country’s first bank to achieve 100% carbon neutrality.
The Bank operates over 270 strategically located branches and maintains an extensive network of ATMs across the island. It also boasts the widest international presence among Sri Lankan banks, with 21 branches in Bangladesh, a fully-fledged 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 subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, offer various financial services through their own 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.
