Saturday Aug 15, 2026
Saturday Aug 15, 2026
Saturday, 15 August 2026 00:05 - - {{hitsCtrl.values.hits}}
Chairman Kavinda de Zoysa (left) and General Manager/CEO Y. A. Jayathilaka
Bank of Ceylon (BOC), the country’s largest bank, posted Rs. 67 billion Profit Before Tax (PBT) for the first half of 2026 as it continued to make significant contributions to the economy and growth.
Chairman Kavinda de Zoysa said: “Building on our strong financial base and enduring commitment to the nation, BOC remains dedicated to supporting Sri Lanka’s economic growth and sustainable development. During 1H 2026, our focus on operational excellence, prudent risk management and customer-centric innovation enabled us to maintain financial resilience while continuing to support the businesses, entrepreneurs and communities across the country”.
He added: “As the Bankers to the Nation, we remain committed to strengthening our contribution to national economic development, expanding financial inclusion, accelerating digital transformation and advancing sustainable banking. Looking ahead, we will continue to leverage our financial strength, extensive nationwide presence and capabilities to support the country’s evolving priorities and create enduring value for our customers, stakeholders and the nation while ensuring that, customer service and experience will be at the heart of everything we do.”
BOC continued to leverage its financial strength to support national priorities and drive economic activity during the 1H. The bank continued to provide financing to the Government and State-Owned Enterprises, invest in Government Securities and support power and critical national infrastructure projects, while facilitating essential imports including fuel, pharmaceuticals, coal, gas and capital goods. BOC also continued to contribute to Government revenue through taxes and dividend payments.
Supporting private-sector growth, the bank provided financing across key sectors, with particular emphasis on SMEs, agriculture, exporters and entrepreneurs. Through initiatives such as SME Circles, the Export Circle and the country’s first Agri-Banking Unit, together with dedicated program for youth and women entrepreneurs, BOC continued to strengthen productive capacity, employment and inclusive economic growth, reinforcing its enduring contribution to Sri Lanka’s economic resilience and development.
In 1H 2026, Net Interest Income (NII) reached Rs. 109.4 billion, reflecting the bank’s continued focus on disciplined balance sheet management, effective management of asset-liability trade-off and optimised funding strategies. Interest income grew by 4% YoY to Rs. 253.7 billion, demonstrating the bank’s ability to effectively manage its earning assets and sustain income generation through prudent financial management.
Net fee and commission income grew by 17% YoY to Rs. 12.7 billion. The growth was driven by higher transaction volumes across card services, retail banking and remittances, alongside the increasing use of digital banking solutions. Continued investment in digital capabilities and value-added financial solutions, together with the bank’s established card business and customer-focused offerings, supported the growth of non-interest income and enhanced customer engagement.
Building on its earnings momentum, the bank recorded total operating income of Rs. 131.4 billion, representing a 9% YoY increase, driven by growth in both net interest income and fee-based income. Operating profit before taxes on financial services reached Rs. 79.0 billion, demonstrating the bank’s robust underlying earnings capacity and effective management of its core operations. The cost to income ratio stood at 32.67%, reflecting sustained operational efficiency and disciplined management of the bank’s cost base.
Profit Before Tax (PBT) reached Rs. 62.7 billion after accounting for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL). Income tax expenses amounted to Rs. 22.9 billion, resulting in a Profit After Tax (PAT) of Rs. 39.8 billion. Extending its contribution beyond financial performance, the bank contributed Rs. 39.2 billion in total taxes to the Government, making a significant contribution to national revenue.
BOC maintained a prudent and proactive approach to credit risk management during 1H 2026, navigating heightened geopolitical and economic uncertainties while maintaining a disciplined approach to credit exposures. An impairment charge of Rs. 14.6 billion was recognised on loans and advances, compared with Rs. 12.0 billion in the corresponding period of the previous year, reflecting a cautious assessment of credit exposures across lending segments and the bank’s continued focus on maintaining portfolio quality.
Asset quality remained resilient, as the Stage 3 loan ratio (Net) improved to 5.01%. The Stage 3 provision coverage ratio also strengthened to 61.79%, reflecting enhanced provisioning buffers and the bank’s continued focus on maintaining sound asset quality. Strengthened credit evaluation, proactive portfolio monitoring, enhanced recovery mechanisms and disciplined lending practices supported the bank in maintaining asset quality and effectively managing credit exposures amid evolving economic conditions.
The General Manager/CEO Y. A. Jayathilaka said: “As BOC marks 87 years of a legacy of trust and service to Sri Lanka, we continue to build on a legacy of resilience, innovation and an unwavering commitment to the nation’s economic progress. During 1H 2026, we remained focused on strengthening our financial performance while accelerating digital transformation to make banking more accessible, seamless and customer-centric. The continued advancement of platforms such as BOC Flex, SmartPay QR and digital payment solutions, together with our extensive digital and physical banking network, reflects our commitment to shaping a more connected and inclusive financial ecosystem”.
He added: “Looking ahead, we will continue to invest in technology, strengthen our digital capabilities and deliver innovative solutions that anticipate evolving customer needs, while leveraging our scale and national reach to empower businesses, communities and contribute to Sri Lanka’s sustainable economic development.”
As of 30 June 2026, the bank maintained a robust balance sheet, with total assets of over Rs. 5.4 trillion, gross loans and advances of Rs. 2.8 trillion and a deposit base of Rs. 4.3 trillion, underscoring the bank’s substantial balance-sheet capacity and financial strength. The bank recorded a Return on Assets (ROA) of 2.30% and a Return on Equity (ROE) of 20.44%, demonstrating its strong capacity to generate returns from its asset and capital base. The bank remained well-capitalised, with a Tier I Capital Adequacy Ratio of 13.32% and a Total Capital Adequacy Ratio of 17.22%, comfortably maintaining regulatory capital requirements. Liquidity coverage ratios for both rupee and all currencies remained well above the minimum regulatory thresholds, reinforcing the bank’s strong liquidity position and financial resilience.
