Bank of Ceylon reported a net profit of Rs. 58.7 billion for the nine months ended Sept. 30, 2026, as interest income grew faster than interest expenses and the bank set aside less for loan losses than a year earlier. The state-owned lender posted a pre-tax profit of Rs. 94.1 billion.
Net interest income rose 10 percent year on year to Rs. 169.2 billion, with interest income increasing 6 percent to Rs. 390.8 billion and interest expenses rising 3 percent to Rs. 221.6 billion.
Bank of Ceylon Chairman, Kavinda de Zoysa said, “Our performance over the first nine months of 2026 reflects the strength of BOC’s franchise, the confidence of our customers and the disciplined execution of our strategy. Beyond profitability, our priority remains strengthening our capital position, maintaining sound risk management and further advancing financial inclusion.
During the first nine months of 2026, BOC continued to deliver resilient financial performance, supported by effective balance sheet management, disciplined funding strategies and sustained growth in its core banking operations.
Net Interest Income (NII) reached Rs. 169.2 billion, reflecting an 10 percent increase compared with the corresponding period of the previous year. Interest income increased by 6 percent to Rs. 390.8 billion, while interest expenses increased by 3 percent to Rs. 221.6 billion. This performance reflects the Bank’s continued focus on optimizing its earning assets, managing funding costs and maintaining an effective asset-liability position amid changing market conditions.
Net fee and commission income increased by 13 percent to Rs. 19.0 billion, supported by higher transaction volumes across card services, retail banking, digital payment channels and remittance services. The Bank’s extensive customer base, established card business and continued investment in digital banking capabilities supported the growth in non-interest income, further diversifying its earnings base. Building on its earnings performance, total operating income increased by 10 percent to Rs. 198.9 billion, while operating expenses amounted to Rs. 63.2 billion.
Operating profit before taxes on financial services reached Rs. 118.8 billion. After accounting for taxes on financial services amounting to Rs. 24.7 billion and income tax expenses of Rs. 35.4 billion, the Bank recorded a Profit Before Tax (PBT) of Rs. 94.1 billion and a Profit After Tax (PAT) of Rs. 58.7 billion respectively.
Extending its contribution beyond financial performance, BOC contributed Rs. 60.1 billion in direct taxes to the Government during the period, reaffirming its significant contribution to national revenue and economic stability.
During the period, the Bank recognized an impairment charge of Rs. 16.8 billion on loans and advances, compared with Rs. 18.7 billion in the corresponding period of 2025. This reflects the Bank’s continued focus on assessing expected credit losses across lending segments and maintaining adequate provisioning buffers.
Asset quality remained a key priority, with the Stage 3 loan ratio (Net) standing at 4.97 percent. The Stage 3 provision coverage ratio stood at 61.70 percent, reflecting the Bank’s provisioning strength and continued focus on maintaining portfolio resilience.
Strengthened credit evaluation, proactive portfolio monitoring, enhanced recovery mechanisms and disciplined lending practices continued to support the Bank in effectively managing credit exposures and maintaining sound asset quality.
As of 30 September 2026, BOC maintained a strong balance sheet, with total assets amounting to Rs. 5.9 trillion, reflecting a 7 percent increase YTD. This growth demonstrates the Bank’s sustainable growth in balance sheet and effective management of its asset portfolio.
Gross loans and advances stood at Rs. 2.9 trillion, reflecting the Bank’s continued support for economic activities across key sectors. The deposit base reached Rs. 4.8 trillion, representing an 8% increase YTD, demonstrating sustained customer confidence and the Bank’s strong deposit mobilisation capabilities.
The Bank’s substantial balance sheet capacity, diversified funding base and extensive customer portfolio continued to reinforce its financial strength and ability to support the financing requirements of individuals, businesses and the wider economy.
BOC maintained strong financial and prudential indicators during the first nine months of 2026, reflecting its sustained profitability, efficient utilization of capital and sound liquidity management.
The Bank recorded a Return on Assets (ROA) of 2.21 percent and a Return on Equity (ROE) of 19.69 percent, demonstrating its ability to generate returns from its asset and capital base. The Bank remained reasonably capitalised, with Tier I Capital Adequacy Ratio of 13.21 percent and Total Capital Adequacy Ratio of 16.73 percent, comfortably maintaining the applicable regulatory capital requirements. Liquidity remained robust, with the Rupee Liquidity Coverage Ratio (LCR) at 243.00 percent and all-currency LCR at 231.51 percent, both comfortably above the minimum regulatory thresholds. These indicators underscore BOC’s strong position, liquidity resilience and capacity to meet its financial obligations while supporting future business growth.
The General Manager/ Chief Executive Officer, Y. A. Jayathilaka, stated, “Our performance during the third quarter of 2026 too reflects the strength of our execution, disciplined management and continued focus on delivering sustainable business growth.”
BOC achieved significant milestones during 2026, further strengthening its institutional standing and confidence among local and international stakeholders.
