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Commercial Bank
The Commercial Bank of Ceylon Group has posted consistent growth in business volumes and its balance sheet in the third quarter of 2026 to end the first nine months of the year in a characteristically strong position.
Comprising Sri Lanka’s largest private sector bank and six subsidiaries, the Group reported gross income of Rs. 318.79 billion for the nine months ending 30th September, an increase of 18.87%, with interest income for the period improving by 20.52% to Rs. 266.98 billion. Gross income for the third quarter alone was up 20.01% to Rs. 109.63 billion, primarily due to the healthy growth of the loan book.
A combination of rising interest rates and notable growth in deposits resulted in interest expense for the nine months growing by 23.62% to Rs. 145.92 billion. Consequently, the Group posted a net interest income of Rs. 121.06 billion for the nine months and Rs. 41.36 billion for the third quarter, reflecting growth of 16.98% and 19.30% respectively.
Total operating income for the nine months grew by 14.37% to Rs. 160.33 billion, and the Group reported it had increased its provisions for impairment charges and other losses by 17.84% to Rs. 16.57 billion for the nine months as a prudential measure, resulting in net operating income of Rs. 143.76 billion for the period, an improvement of 13.98%.
Operating expenses increased by 19.94% to Rs. 47.27 billion for the nine months on account of increased staff costs, technology investments and related expenses, leading to an operating profit before taxes on financial services of Rs. 96.49 billion for the period reviewed, a growth of 11.27%.
With taxes on financial services for the period increasing by 25.35% to Rs. 16.75 billion, the Group reported a profit before income tax of Rs. 79.74 billion, reflecting a growth of 8.71%. Income tax for the period increased by 8.86% to Rs. 27.57 billion, resulting in a nine-month net profit after tax of Rs. 52.16 billion for the Group, a growth of 8.63%. Defensive provisioning for impairment and increased investments in business growth and operating capabilities impacted on net profit growth, the Bank said.
The Group reported a net profit of Rs. 16.74 billion for the third quarter, compared to Rs. 16.86 billion in the corresponding quarter of last year, reflecting a marginal decline of 0.68%.
On its own, the Commercial Bank of Ceylon posted nine-month pre-tax profit of Rs. 76.16 billion and net profit of Rs. 49.54 billion, up 7.92% and 7.64% respectively.
“The market dynamics pertinent to the banking sector remained broadly stable through the second and third quarters of the year despite a rising rate environment,” Mr Sharhan Muhseen, Chairman of Commercial Bank commented. “Against this backdrop, we have maintained consistent performance across our key financial indicators. We continue to closely monitor evolving global developments and their impact on certain sectors of Sri Lankan business to ensure we respond swiftly and strategically while safeguarding resilience and sustainable growth.”
Mr Sanath Manatunge, Managing Director/CEO of Commercial Bank, noted that the Bank and the Group had continued to record solid growth in both deposits and advances in the nine months reviewed, in a clear demonstration of their stability and resilience. “The Group has maintained its unwavering focus on its core banking operations and its responsibilities to all stakeholder segments as well as the national economy. This nine-month performance reflects our ability to maintain course and trajectory even in testing times,” he said.
The Group’s gross loans and advances grew by 16.70% or Rs. 348.37 billion over the nine months at an average of Rs. 38.71 billion per month, taking the loan book to Rs. 2.43 trillion as at 30th September 2026, underscoring the scale of the Bank’s role as a lender. Loan book growth over the preceding 12 months amounted to Rs. 526.88 billion or 27.63% at a monthly average of Rs. 43.91 billion.
Meanwhile, deposits at Group level grew by Rs. 418.98 billion or 15.52% in the nine months ending 30th September 2026, at a monthly average of Rs. 46.55 billion, to reach Rs. 3.12 trillion. Over the preceding 12 months, deposits grew by a remarkable Rs. 530.30 billion or 20.49% at a monthly average of Rs. 44.19 billion. Taken separately, Commercial Bank’s deposits crossed Rs. 3 trillion for the first time during the quarter.
Total assets of the Group grew by a noteworthy 14.68% or Rs. 496.08 billion since December 2025 to Rs. 3.87 trillion as at 30th September 2026, and by an even more impressive Rs. 642.26 billion or 19.87% over the preceding 12 months. This represents a monthly average growth of Rs. 55.12 billion over the nine months reviewed, and Rs. 53.52 billion a month over the preceding year.
In terms of key performance ratios, the Bank’s Tier 1 Capital Ratio as of 30th September 2026 stood at 12.50%, compared to 13.03% at the end of 2025, while its Total Capital Ratio stood at 16.35% as against 16.69% as at 31st December 2025. The ratios remained significantly higher than the regulatory minimum ratios of 10% and 14% respectively, but were marginally lower than those reported in December 2025 due to the substantial growth in assets and the fact that the profit of the third quarter was not taken into consideration when computing the ratios for the review period, the Bank said.
In terms of profitability, the Bank’s net interest margin for the period declined to 4.45% (annualised) from 4.51% at the end of 2025, a marginal reduction attributable to the increased cost of deposits. The Bank’s return on assets (before tax) was 2.92% (annualised) compared to 2.96% at the end of 2025, while the return on equity (after tax - annualised) was 19.31% compared to 19.51% at the end of 2025.
The Bank’s cost-to-income ratio excluding taxes on financial services stood at 29.24%, as against 29.66% for 2025, while the figure inclusive of taxes on financial services was 40% for the nine months, in comparison with 39.20% for the preceding year.
The CASA ratio of the Bank declined to 37.08% as at 30th September 2026 from 39.65% at the end of 2025, but continues to be one of the best in the industry, the Bank said.
In terms of asset quality, the Bank’s net impaired loans (Stage 3) to total loans ratio stood at 1.47% as at 30th September 2026 compared to 1.54% at the end of 2025 and 1.79% a year ago. The gross impaired loans (Stage 3) to total loans ratio stood at 5.31% as against 5.81% at the end of 2025 and 6.25% at the end of the third quarter of 2025. The Impairment (Stage 3) to Stage 3 loans ratio stood at 72.35% as at 30th September 2026, down from 73.50% at the end of 2025 but up from 71.43% a year ago.
The Bank's liquidity coverage ratio as at 30th September 2026 stood at 421.11% for Rupees and 226.57% for all currencies, both well above the statutory minimum ratios of 100%. The Bank’s net stable funding ratio stood at 163.10% as at 30th September 2026, also significantly higher than the minimum statutory requirement of 100%.
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 with 274 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 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 wholly 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.
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