The Commercial Bank of Ceylon Group has announced significant growth in its financial performance for the first half of the 2026 fiscal year, marked by a loan book expansion of Rs. 270.4 billion, resulting in a total lending portfolio of Rs. 2.36 trillion. Total assets experienced an increase of Rs. 361 billion, bringing the overall assets to Rs. 3.74 trillion. The Group’s gross income surpassed Rs. 200 billion during this period, reflecting robust operational results.
As the first private banking group in Sri Lanka to surpass Rs. 3 trillion in deposits, the Commercial Bank of Ceylon Group has set a new standard for performance. For the six months ending June 30, 2026, the Group reported a deposit growth of Rs. 315.13 billion, averaging Rs. 52.52 billion monthly, concluding the first half of the year with deposits totaling Rs. 3.02 trillion. This represents a significant year-on-year growth of 20.33%, with an average monthly increase of Rs. 42.46 billion.
During the reviewed period, the Group’s gross loans and advances rose by Rs. 270.43 billion, averaging Rs. 45.07 billion monthly. This growth underscores the pivotal role the Bank plays in financial intermediation. Over the previous year, lending increased by Rs. 624.48 billion, marking a 36.07% rise at an average of Rs. 52.04 billion per month.
The interim financial statements submitted to the Colombo Stock Exchange reveal that total assets grew by 10.68% or Rs. 361 billion since December 2025, reaching Rs. 3.74 trillion as of June 30, 2026. In the last 12 months, this figure has seen an impressive increase of 19.42%, equivalent to Rs. 608.16 billion.
Mr. Sharhan Muhseen, Chairman of Commercial Bank, stated that the ongoing global and regional challenges are impacting businesses and economies, reinforcing the importance of the Bank’s resilient core operations. He emphasized the institution’s commitment to adapting its strategies in response to these challenges while continuing to deliver substantial value to customers and stakeholders.
Mr. Sanath Manatunge, Managing Director and CEO, noted the Bank’s cautious approach in maintaining adequate buffers to mitigate the effects of external pressures, as evidenced by increased impairment provisions, particularly in the second quarter. He assured that although risk management has become more critical due to global economic volatility, the Bank is well-equipped to support its customers during these turbulent times.
The Commercial Bank Group, which includes Sri Lanka’s largest private sector bank along with six subsidiaries, reported gross income of Rs. 209.16 billion for the six-month period, a growth of 18.28%. Notably, gross income for the second quarter alone rose by 24.04% to Rs. 110.16 billion. Interest income increased by 17.05% to Rs. 171.65 billion over the six months, and by 19.86% to Rs. 88.76 billion for the second quarter, primarily driven by the growth in the loan portfolio.
Interest expenses for the reviewed six months increased by 18.14% to Rs. 91.96 billion and by 21.36% to Rs. 47.88 billion in the second quarter, primarily due to the expansion of the deposit base. Consequently, the Group achieved a net interest income of Rs. 79.69 billion for the six months and Rs. 40.88 billion for the second quarter, reflecting growth rates of 15.81% and 18.16%, respectively.
Total operating income for the six months rose by 17.85% to Rs. 109.07 billion, while the second quarter saw a 26.55% increase to Rs. 58.23 billion. In response to prevailing uncertainties, the Group increased its provisions for impairment and other losses by 33.44% to Rs. 14.85 billion, with the second quarter alone recording an increase of 193.38% in these charges.
As a result, net operating income for the six months grew by 15.72% to Rs. 94.23 billion, and by 10.77% to Rs. 46.57 billion in the second quarter. Operating expenses increased by 18.47% to Rs. 30.61 billion, coinciding with the Bank’s workforce exceeding 6,000 employees in June 2026. The Group’s operating profit before taxes on financial services reached Rs. 63.62 billion for the six months, representing a 14.44% improvement.
With taxes on financial services rising by 20.38% to Rs. 10.56 billion for the six months, the Group reported a profit before income tax of Rs. 53.05 billion, indicating a 13.33% growth. For the second quarter, the profit before tax was Rs. 25.42 billion, with a net profit after tax of Rs. 17.49 billion, reflecting growth rates of 4.80% and 7.98%, respectively. Commercial Bank of Ceylon PLC’s profit before tax stood at Rs. 50.85 billion and net profit after tax at Rs. 33.79 billion, achieving growth rates of 12.39% and 12.45% respectively.
In terms of key performance metrics, the Bank’s net impaired loans to total loans ratio was 1.38% as of June 30, 2026, down from 1.54% at the end of 2025. The gross impairment ratio was 5.32%, a decline from 5.81% at the end of 2025. The impairment coverage ratio improved to 74.14% by the end of June 2026, compared to 73.50% at the end of 2025.
The Bank’s Tier 1 Capital Ratio was recorded at 13.23%, with the Total Capital Ratio at 16.58%, both exceeding the regulatory minimum requirements. The liquidity coverage ratio was significantly high at 444.92% for Rupees and 253.94% for all currencies, well above the statutory minimums. The net stable funding ratio stood at 162.98%, also well above the required threshold.
Profitability metrics indicate that the Bank’s net interest margin remained stable at 4.51% for the period. The return on assets before tax improved to 2.99%, while the return on equity rose to 20.28%. The cost-to-income ratio, excluding taxes on financial services, improved to 27.82%, compared to 29.66% the previous year. Including taxes, the ratio was 37.77%, down from 39.20% in the prior year.
The Bank’s CASA ratio saw a slight decline to 39.17% as of June 30, 2026, from 39.65% at the end of 2025, but it remains among the best in the industry.
Commercial Bank was the first bank in Sri Lanka to achieve a market capitalization exceeding US$ 1 billion and was recognized as the top-ranked Sri Lankan bank in the 2026 edition of the Top 1000 World Banks ranking by The Banker magazine. The Bank boasts the highest capital base among all local banks and is the leading private sector lender in Sri Lanka. It has also been acknowledged as the most respected and awarded bank in the country, a leader in digital innovation, and the first carbon-neutral bank in Sri Lanka.
With over 270 strategically located branches and a comprehensive network of automated machines nationwide, Commercial Bank has the broadest international presence among Sri Lankan banks, including 21 branches in Bangladesh, a majority stake in a Tier I Bank in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre. The Bank’s fully-owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also provide a variety of financial services through their networks.
Image caption: Mr. Sharhan Muhseen, Chairman, and Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
