Commercial Bank of Ceylon PLC

Annual Report 2018

Financial Highlights

Table – 01
GROUP Bank
2018 2017 Change % 2018 2017 Change %
Results for the year – (Rs. Bn.)
Gross income 139.657 115.605 20.81 138.049 114.357 20.72
Operating profit before taxes on financial services 32.144 28.173 14.10 31.643 28.064 12.75
Profit before taxation (PBT) 26.099 23.280 12.11 25.591 23.183 10.39
Income tax expenses 8.236 6.654 23.77 8.047 6.602 21.90
Profit after taxation (PAT) 17.863 16.627 7.44 17.544 16.581 5.81
Revenue to the Governments 15.323 11.587 32.24 15.127 11.472 31.86
Gross dividends 6.571 6.478 1.44 6.571 6.478 1.44
Position at the year end – (Rs. Bn.)
Shareholders’ funds (stated capital and reserves) 119.398 107.995 10.56 118.406 107.099 10.56
Deposits from customers 994.371 857.270 15.99 983.037 850.128 15.63
Gross loans and advances 897.956 760.454 18.08 890.229 754.708 17.96
Total assets 1,319.912 1,155.821 14.20 1,303.485 1,143.374 14.00
Information per ordinary share (Rs.)
Earnings (Basic) 17.55 17.05 2.93 17.36 17.03 1.94
Dividends – Cash 4.50 4.50
Dividends – Shares 2.00 2.00
Net assets value 118.13 108.44 8.94 117.15 107.54 8.94
Market value at the year end – Voting N/A N/A 115.00 135.80 (15.32)
Market value at the year end – Non-voting N/A N/A 95.00 105.00 (9.52)
Ratios
Return on average shareholders’ funds – (ROE) (%) 15.71 17.78 (2.07) 15.56 17.88 (2.32)
Return on average assets – (ROA) (%) 1.44 1.53 (0.09) 1.43 1.54 (0.11)
Total impairment provision as a % of gross loans and advances (%) 3.38 2.37 (1.01) 3.27 2.29 (0.98)
Cost of risk (%) 0.98 0.13 (0.85) 0.96 0.09 (0.87)
Non-performing loans ratio – Gross (%) 3.24 1.88 (1.36)
Non-performing loans ratio – Net (%) 1.71 0.92 (0.79)
Price earnings – Ordinary voting shares (times) N/A N/A 6.62 7.97 (16.93)
Dividend Yield – Ordinary voting shares (%) N/A N/A 5.65 4.79 0.86
Dividend cover on ordinary shares (times) N/A N/A 2.67 2.62 0.05
Statutory ratios (%)
Liquid assets ratio – Domestic Banking Unit (DBU) N/A N/A 24.47 27.28 (2.81)
Liquid assets ratio – Off Shore Banking Unit (OBC) N/A N/A 30.20 30.95 (0.75)
Capital Adequacy Ratios (under Basel III) (%)
Common Equity Tier (CET) I capital ratio
(Minimum requirement – 2018 – 7.375%, 2017 – 6.250%)
11.434 12.122 (0.688) 11.338 12.111 (0.773)
Tier I capital ratio (Minimum requirement – 2018 – 8.875%, 2017 – 7.750%) 11.434 12.122 (5.68) 11.338 12.111 (0.773)
Total capital ratio (Minimum requirement – 2018 – 12.875%, 2017 – 11.750%) 15.626 15.701 (0.075) 15.603 15.746 (0.143)
Liquidity coverage ratio (%)
Rupee – (Minimum requirement – 2018 – 90%, 2017 – 80%) N/A N/A 236.20 272.15 (35.95)
All currency – (Minimum requirement – 2018 – 90%, 2017 – 80%) N/A N/A 238.69 209.17 29.50

Financial Goals and Achievements – Bank Table – 02

Financial indicator Goal Achievement
2018 2017 2016 2015 2014
Return on average assets (ROA) (%) Over 2 1.43 1.54 1.53 1.42 1.60
Return on average shareholders’ funds (%) Over 20 15.56 17.88 19.52 16.90 17.01
Growth in income (%) Over 20 20.72 24.10 19.62 7.03 0.96
Growth in profit for the year (%) Over 20 5.81 14.25 21.92 6.47 7.03
Growth in total assets (%) Over 20 14.00 12.96 15.05 10.58 31.29
Dividend per share (DPS) (Rs.) Over Rs. 5.00 6.50 6.50 6.50 6.50 6.50
Capital Adequacy Ratios
CET I capital ratio (%) – Minimum requirement as per Basel III – 7.375% 2% buffer over the regulatory minimum requirement 11.338 12.111 N/A N/A N/A
Tier I capital ratio (%) – Minimum requirement as per Basel III – 8.875% 11.338 12.111 N/A N/A N/A
Tier I capital ratio (%) – Minimum requirement as per Basel II – 5% N/A N/A N/A 11.56 11.60 12.93
Total capital ratio (%) – Minimum requirement as per Basel III – 12.875% 2% buffer over the regulatory minimum requirement 15.603 15.746 N/A N/A N/A
Total capital ratio (%) – Minimum requirement as per Basel II – 10% N/A N/A N/A 15.89 14.26 15.97
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