ComBank Group takes deposits past Rs. 3 Tn. threshold in solid 6-month performance
- Loan book grows by Rs. 270.4 Bn. in 6 months to Rs. 2.36 Tn.
- Total assets up by Rs. 361 Bn. to Rs 3.74 Tn.
- 6-month gross income crosses Rs. 200 Bn.
- Prepares for impacts of global volatility with prudent impairment provisions
The Commercial Bank of Ceylon Group has reiterated its leadership in financial intermediation, becoming the first private sector banking group in Sri Lanka to cross the Rs. 3 trillion threshold in deposits, a new performance benchmark established in the second quarter of the 2026 financial year.
The Group’s deposits grew by Rs. 315.13 billion in the six months ending 30th June 2026, at a monthly average of Rs 52.52 billion, to end the first half of the year with deposits of Rs. 3.02 trillion. Over the preceding 12 months, deposits grew by a noteworthy 20.33% at a monthly average of Rs. 42.46 billion.
In the six months reviewed, the Group’s gross loans and advances grew by Rs. 270.43 billion at an average of Rs. 45.07 billion per month, taking the loan book to Rs. 2.36 trillion, underscoring the scale of the Bank’s role in financial intermediation. Lending over the preceding 12 months grew by Rs. 624.48 billion or 36.07% at a monthly average of Rs. 52.04 billion.
Interim financial statements filed with the Colombo Stock Exchange (CSE) report that total assets of the Group grew by 10.68% or Rs. 361 billion since December 2025 to Rs. 3.74 trillion as at 30th June 2026. This reflects an impressive increase of 19.42% or Rs. 608.16 billion over the preceding 12 months.
“As the impacts of global and regional developments continue to take their toll on businesses and economies, our stakeholders can draw confidence from the resilience underscored by the enduring strength of our core banking operations,” Mr Sharhan Muhseen, Chairman of Commercial Bank commented. “We continue to refine our projections and strategic responses to the evolving challenges while remaining firmly anchored to our strategic vision and steadfast in our commitment to delivering lasting value to our customers, stakeholders and the wider community we serve.”
Mr Sanath Manatunge, Managing Director and CEO of Commercial Bank added: “Our prudential approach of maintaining adequate buffers to cushion the adverse impacts of external factors is evident in our six-month results. This includes an increase in impairment provisioning, noticeably in respect of the second quarter. While our heightened emphasis on risk management is dictated by the volatile global economic landscape, we remain well positioned to support our customers through the turbulence.”
Comprising Sri Lanka’s largest private sector bank and six subsidiaries, the Commercial Bank Group reported gross income of Rs. 209.16 billion for the six months, an increase of 18.28%. Gross income for the second quarter alone grew by 24.04% to Rs. 110.16 billion. Interest income improved by 17.05% to Rs. 171.65 billion for the six months, and by 19.86% to Rs 88.76 billion for the second quarter, primarily due to the growth of the loan book.
Interest expense for the six months under review grew 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 growth in the deposit portfolio. As a result, the Group recorded net interest income of Rs. 79.69 billion for the six months and Rs. 40.88 billion for the second quarter, reflecting growth of 15.81% and 18.16% respectively.
Total operating income for the six months grew by 17.85% to Rs. 109.07 billion, and by 26.55% to Rs. 58.23 billion for the second quarter. The Group increased its provisions for impairment charges and other losses by 33.44% to Rs. 14.85 billion for the six months as a prudential measure in the backdrop of uncertainties in the geopolitical environment. Impairment charges and other losses for the second quarter alone, at Rs. 11.67 billion, represented an increase of 193.38%.
Consequently, 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 meanwhile increased by 18.47%, to Rs. 30.61 billion for the six months, with the Bank’s staff strength crossing 6,000 in June 2026. As a result, the Group posted operating profit before taxes on financial services of Rs. 63.62 billion for the six months, an improvement of 14.44%.
With taxes on financial services for the six months increasing by 20.38% to Rs. 10.56 billion, the Group reported profit before income tax of Rs. 53.05 billion, reflecting a growth of 13.33%. Income tax for the period under review increased by 12.67% to Rs. 17.63 billion, generating a six-month net profit after tax of Rs. 35.42 billion for the Group, reflecting a bottom-line growth of 13.66%.
In respect of the second quarter, the Group posted profit before tax of Rs. 25.42 billion and net profit after tax of Rs. 17.49 billion, recording growths of 4.80% and 7.98%, respectively. Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs. 50.85 billion and profit after tax of Rs. 33.79 billion for the six months, posting growths of 12.39% and 12.45%, respectively.
In key performance ratios, the Bank’s net impaired loans (Stage 3) to total loans ratio stood at 1.38% as at 30th June 2026 compared to 1.54% at end 2025, while its gross impairment (Stage 3) to total loans ratio stood at 5.32% as against 5.81% at the end of 2025 and 6.98% at the end of the second quarter of 2025. The Impairment (Stage 3) to Stage 3 loans ratio improved to 74.14% at end June 2026, from 73.50% at the end of 2025 and 67.49% a year ago.
The Bank’s Tier 1 Capital Ratio as of 30th June 2026 was 13.23%, while its Total Capital Ratio stood at 16.58% as against the regulatory minimum ratios of 10% and 14% respectively.
The Bank's liquidity coverage ratio as at 30th June 2026 stood at 444.92% for Rupees and 253.94% for all currencies, both well above the statutory minimum ratios of 100%. The Bank’s net stable funding ratio stood at 162.98% as of 30th June 2026, also significantly higher than the minimum statutory requirement of 100%.
In terms of profitability, the Bank’s net interest margin stood at 4.51% (annualised) for the period, unchanged from the end of 2025. The Bank’s return on assets (before tax) was 2.99% compared to 2.96% at end 2025, while the return on equity improved to 20.28% from 19.51% at the end of 2025.
The Bank’s cost to income ratio excluding taxes on financial services stood at 27.82%, as against 29.66% for 2025, while the figure inclusive of taxes on financial services was 37.77% for the six months, in comparison with 39.20% for the preceding year.
The CASA ratio of the Bank declined marginally to 39.17% as at 30th June 2026, from 39.65% at end 2025, but continues to be one of the best in the industry.
Commercial Bank was the first Sri Lankan bank to achieve a market capitalisation exceeding US$ 1 billion. The Bank emerged as the No. 1 ranked Sri Lankan bank in the 2026 edition of the prestigious Top 1000 World Banks ranking published by The Banker magazine, UK. The Bank has the highest capital base among all Sri Lankan banks, and is the largest private sector lender in Sri Lanka. Ranked No. 1 in the Business Today Top 40, Commercial Bank is recognised as the most respected and most-awarded bank in Sri Lanka, is a leader in digital innovation and is the country’s first 100% carbon-neutral bank.
Commercial Bank operates more than 270 strategically-located branches and an extensive network of automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 21 branches in Bangladesh, a majority stake in a fully-fledged Tier I Bank in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s fully-owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also deliver a range of financial services via their own branch networks.
Photo caption:
Mr. Sharhan Muhseen, Chairman, and Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank.