• Highest disbursement under “Saubagya” Working Capital Loan scheme – 18,589 facilities worth of LKR 39.1 billion
• Moratoriums provided for facilities valued at over LKR 589.4 billion
• Highest reported industry profit (2020) – LKR 23.6 billion (PBT)
• Triple LKR 2.0 trillion Balance Sheet – Assets, Loans & Advances, Deposits
• YoY growth in business volumes: Assets – 24%, Loans – 28%, Deposits – 23%
Bank of Ceylon (BOC) has once again stamped its resilient leadership position by navigating an exhausting year carefully, but with great strength, continuously powering the wheels of the Sri Lankan economy.
Year 2020 was a year of many unforeseen challenges, resulting in economies around the world contracting due to persistent lockdowns following the COVID-19 outbreak.
Financial Performance – 2020
Amidst these unexpected challenges, the Bank’s operating profit stood at LKR 29 billion and reported LKR 23.6 billion as Profit before Tax (PBT) for the year 2020, moving forward with stable performance, while managing headwinds caused by low interest rates, cashflow deferments and operational restrictions.
Profit After Tax (PAT) for the year ended was LKR 17.8 billion. The Bank’s assets base grew by 24% to LKR 2.9 trillion, primarily backed by an increase of 28% in the loan book.
Reaching another milestone, the Bank’s loan book crossed the LKR 2.0 trillion mark during the year and closed with LKR 2.1 trillion of gross loans and advances to customers. Both Government and Private sector lending contributed to growth during the year, while working capital and personal lending showed a boost in all segments, including Retail and Corporate financing.
The Bank’s deposit base (more than 23% of the industry) increased during the year despite low interest rates. The Bank’s deposit base of LKR 2.5 trillion represents 35% of the Current and Saving deposit (CASA) base, which generates funds at low cost.
During 2020, the Bank successfully executed issuance of its first Additional Tier 1 (AT1) bond, generating LKR 15.0 billion ATI capital. The Bank’s Tier I Capital and Total Capital ratio stood at 11.2% and 14.9% respectively by end 2020, which were above regulatory norms. Despite cash flow deferments on loan instalments, the Bank was able to maintain better trade -off between liquid assets and liabilities. All liquid level monitoring ratios were maintained positively.