Fitch affirms Bank of Ceylon’s National Long-Term Rating at ‘A(lka)’ with a Stable Outlook

Fitch Ratings (Fitch) has affirmed the National Long-Term Rating at ‘A(lka)’ with a Stable Outlook, the Long Term Foreign Currency Issuer Default Rating(IDR) at ‘CC’, the Long-Term Local-Currency IDR of ‘CCC-‘ with a Stable Outlook, and the Short-Term IDR at ‘C’ for Bank of Ceylon (BoC).

This rating affirmation is backed by the fact that “Sri Lanka banks’ operating environment continues to show signs of stabilization, supporting the recovery in banks’ operational flexibility” and “There are sustained improvements in reported headline macro variables, but persistent delays in the completion of the sovereign debt restructuring exercise could potentially impede the progress made thus far”, in Fitch’s view.

BoC, being the No. 1 Bank in Sri Lankan Banking industry, its commitment goes beyond mere financial transactions and extends to building lasting relationships, fostering financial empowerment and inclusion.

Since 1939, BoC has continuously interacted with individuals from diverse backgrounds in Sri Lanka, demonstrating a steadfast commitment to generating value for all stakeholders. Its goal is to be the “preferred financial partner “for customers and to uphold its dedication as “Bankers to the Nation.”

With an extensive footprint comprising of a network of over 2,200 direct customer touchpoints, including fully-equipped and mobile branches, SME centers, ATMs and CRMs island-wide, the Bank promotes financial inclusion across the country. The Bank also has overseas presence in Chennai, Maldives, and Seychelles, a limited services branch in Hulhumale and operates a fully-owned subsidiary in London, United Kingdom.

During the first quarter of 2024, BoC demonstrated impressive financial performance, achieving a Profit Before Tax (PBT) of Rs. 9.3 billion with 180% substantial growth compared to the 1Q- 2023, illustrating the Bank’s resilience in challenging economic environment.

As of the end March 2024, the Bank maintained a strong financial position, with total Assets amounting to Rs. 4.3 trillion and total Deposits of Rs. 3.7 trillion. Notably, Net Loans and Advances amounted to Rs. 2.1 trillion, and total Investments amounted to Rs. 1.9 trillion.

The Bank has preserved; Tier I Capital Adequacy Ratio of 12.41% and Total Capital Adequacy Ratio of 15.41% above the statutory requirements for 1Q-2024. Liquidity position has also substantially improved, reflecting the positive market conditions.

The Bank is in the continuous process of improving its products, people and processes by implementing prudent strategies aligned with external dynamics to create and enhance the value to its stakeholders.