May, 14, 2026
The Commercial Bank of Ceylon PLC and its subsidiaries have become the first private sector banking group in Sri Lanka to exceed Rs. 3.5 trillion in assets, one of several achievements in a milestone-studded first quarter of 2026.
Building on its lending-centred record-breaking performance of 2025, the Commercial Bank Group posted total assets of Rs. 3.61 trillion as at 31st March 2026, a growth of Rs. 230 billion or 6.81% over the first three months of the year. Asset growth over the preceding 12 months amounted to Rs. 610 billion or 20.34% YoY.
This growth was based on gross loans and advances increasing by Rs. 71.61 billion in the quarter under review to Rs. 2.16 trillion, at a monthly average of Rs. 23.87 billion; and deposits growing by Rs. 171.14 billion at a monthly average of Rs. 57.05 billion to reach Rs. 2.87 trillion as at 31st March 2026. With this, the Group recorded year-on-year growth of 31.35% in its loan book and 19.04% in its deposits portfolio.
As a result, the Group’s net asset value per share increased to Rs. 203.34 as at 31st March 2026, from Rs. 173.84 a year ago.
Commenting on the Group’s performance, Mr Sharhan Muhseen, Chairman of Commercial Bank said: “We have made a characteristically strong and well-balanced start to 2026. It is encouraging to see the momentum generated by our clear focus on balance sheet strength and disciplined risk management continuing seamlessly into the new year, which benefits from the strong buffers built in 2025. We will continue to build on the fundamentals that sustain shareholder value in the year ahead.”
Mr Sanath Manatunge, Managing Director/CEO of Commercial Bank noted that the Group achieved strong growth improving provision cover to over 75%, ensuring that the provision levels remain robust and aligned with the risks posed by a volatile global economic landscape, while improving its CASA ratio to more than 40%, the best in the industry. “Importantly, our emphasis on sustainability, governance, compliance and national economic priorities has been enhanced, ensuring that the interests of all stakeholders are given their due prominence in our growth,” he said.
Gross income for the quarter grew by 12.47% to Rs. 99 billion, while interest income improved by 14.17% to Rs. 82.89 billion, with the bulk of the income generated by loans. Interest expenses rose by 14.82% to Rs. 44.07 billion as a result of an increase in interest rates and growth in volumes, generating a 13.44% growth in net interest income, which amounted to Rs. 38.81 billion for the three months reviewed.
Total operating income increased by 9.25% to Rs. 50.84 billion, and the Group’s provision for impairment charges and other losses declined to Rs. 3.18 billion compared to the Rs. 7.15 billion reported for the corresponding period of 2025, reflecting the higher prudential provisioning recorded in the comparative quarter. However, the Group remains proactive in identifying sectors susceptible to local and global economic uncertainties, ensuring that adequate provisions are maintained through prudent management overlays.
Consequently, net operating income for the three months, at Rs. 47.66 billion, reflected a growth of 21%, and the Group’s operating expenses increased by 15.81% to Rs. 14.83 billion, resulting in an operating profit before taxes on financial services of Rs. 32.84 billion, an improvement of 23.51%.
Taxes on financial services increased by 29.12% to Rs. 5.20 billion, resulting in Group profit before tax of Rs. 27.63 billion for the three months, a growth of 22.51%. With income tax increasing by 27.84% to Rs. 9.70 billion, the Group reported net profit of Rs. 17.94 billion for the quarter, reflecting a bottom-line growth of 19.80%.
Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs. 26.64 billion and profit after tax of Rs. 17.17 billion for the three months, posting YOY growths of 21.76% and 18.46%, respectively.
In key performance ratios, the Bank’s Tier 1 Capital Ratio as at 31st March 2026 was 13.32%, while its Total Capital Ratio stood at 16.85%. Both ratios are notably higher than the regulatory minimum ratios of 10% and 14% respectively.
Meanwhile, the Bank's liquidity coverage ratio for the quarter reviewed stood at 368.83% for Rupees and 282.77% for all currencies, both well over the statutory minimum ratios of 100%. The Bank’s net stable funding ratio stood at 165.35% as at 31st March 2026, also significantly higher than the minimum statutory requirement of 100%.
In terms of profitability, the Bank’s net interest margin stood at 4.50% for the quarter, compared to 4.51% reported at end 2025 and 4.74% a year ago. The Bank’s return on assets (before tax) improved to 3.21% compared to 2.96% at end 2025 and 3.12% a year ago, while the return on equity improved to 21.37% from 19.51% at the end of 2025.
The Bank’s cost to income ratio excluding taxes on financial services stood at 29.03%, as against 29.66% for 2025, while the figure inclusive of taxes on financial services was 39.60% for the quarter in comparison with 39.20% for the preceding year.
In terms of asset quality, the Bank’s impaired loans (Stage 3) ratio further improved to 1.34% compared to 1.54% at end 2025, while its impairment (Stage 3) to Stage 3 loans ratio too improved to 75.04% as at 31st March 2026 from 73.50% at 31st December 2025.
Commercial Bank is the first Sri Lankan bank with a market capitalisation exceeding US$ 1 Bn., and was also the first bank in the country to be listed among the Top 1000 Banks of the World. Commercial Bank has the highest capital base among all Sri Lankan banks, is the largest private sector lender in Sri Lanka, and the largest lender to the country’s SME sector. Ranked No. 1 in the Business Today Top 40, Commercial Bank is recognised as the most respected and most-awarded Bank in Sri Lanka. Commercial Bank is also a leader in digital innovation and is Sri Lanka’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 fully-fledged Tier I Bank with a majority stake 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.
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