ComBank Group Nine-Month Income Rises 18.9% to Rs. 318.8 Billion; Profit Reaches Rs. 52.2 Billion

COLOMBO, November 13, 2026 — Commercial Bank of Ceylon Group reported gross income of Rs. 318.79 billion for the nine months ended September 30, 2026, up 18.87% year-on-year, supported by sustained lending growth and an expanding deposit base.

Group net profit after tax increased 8.63% to Rs. 52.16 billion, while profit before income tax rose 8.71% to Rs. 79.74 billion. Higher impairment provisions, operating expenses and taxes moderated profit growth.

Third-quarter gross income increased 20.01% to Rs. 109.63 billion, primarily driven by loan book expansion. However, quarterly net profit declined marginally by 0.68% to Rs. 16.74 billion from Rs. 16.86 billion a year earlier.

Interest income for the nine months rose 20.52% to Rs. 266.98 billion. Interest expenses increased 23.62% to Rs. 145.92 billion amid rising interest rates and deposit growth, resulting in net interest income of Rs. 121.06 billion, up 16.98%. Third-quarter net interest income grew 19.30% to Rs. 41.36 billion.

Total operating income increased 14.37% to Rs. 160.33 billion. The Group raised impairment charges and other loss provisions by 17.84% to Rs. 16.57 billion, describing the increase as a prudential measure.

Operating expenses rose 19.94% to Rs. 47.27 billion, reflecting higher staff costs, technology investments and related expenditure. Operating profit before taxes on financial services increased 11.27% to Rs. 96.49 billion.

Taxes on financial services increased 25.35% to Rs. 16.75 billion, while income tax rose 8.86% to Rs. 27.57 billion.

At standalone bank level, Commercial Bank recorded nine-month pre-tax profit of Rs. 76.16 billion and net profit of Rs. 49.54 billion, increases of 7.92% and 7.64%, respectively.

Chairman Sharhan Muhseen said banking-sector conditions remained broadly stable through the second and third quarters despite rising interest rates. He said the Bank continued to monitor global developments and their implications for Sri Lankan businesses.

Managing Director and Chief Executive Officer Sanath Manatunge said growth in deposits and advances reflected the Bank’s resilience and continued focus on core banking operations.

Group gross loans and advances increased 16.70%, or Rs. 348.37 billion, during the nine months to Rs. 2.43 trillion. Over the preceding 12 months, the loan book expanded 27.63%, or Rs. 526.88 billion.

Group deposits grew 15.52%, or Rs. 418.98 billion, during the nine months to Rs. 3.12 trillion, recording year-on-year growth of 20.49%. Commercial Bank’s standalone deposits crossed Rs. 3 trillion for the first time during the quarter.

Total Group assets reached Rs. 3.87 trillion, up 14.68% from December 2025 and 19.87% from September 2025.

The Bank’s Tier 1 capital ratio stood at 12.50%, while its total capital ratio was 16.35%, above the respective regulatory minimums of 10% and 14%. Both ratios declined from end-2025, which the Bank attributed to substantial asset growth and the exclusion of third-quarter profit from the calculations.

The annualised net interest margin eased to 4.45% from 4.51% at end-2025, reflecting higher deposit costs. Annualised pre-tax return on assets stood at 2.92%, while post-tax return on equity was 19.31%.

The cost-to-income ratio excluding taxes on financial services improved to 29.24% from 29.66% in 2025. Including those taxes, the ratio increased to 40% from 39.20%. The current and savings account deposit ratio declined to 37.08% from 39.65% at end-2025.

Asset quality improved, with the net Stage 3 impaired-loan ratio declining to 1.47% from 1.54% at end-2025 and 1.79% a year earlier. The gross Stage 3 ratio fell to 5.31%, compared with 5.81% and 6.25%, respectively. Stage 3 impairment coverage stood at 72.35%.

Liquidity remained above regulatory requirements. The Bank reported liquidity coverage ratios of 421.11% for rupees and 226.57% for all currencies, alongside a net stable funding ratio of 163.10%, each exceeding the statutory minimum of 100%.

Commercial Bank operates 274 branches in Sri Lanka and 21 in Bangladesh, with additional operations in the Maldives, Myanmar and Dubai.