Having boosted its Tier 1 capital by some 63% during 2007, the bank remains the highest rated among its Sri Lankan peers.
Following a rigorous cost-reduction programme, CBC has successfully reduced its cost-income ratio, which, at 47.87%, is among the lowest in the Sri Lankan domestic sector, where the bank also operates the largest ATM network. Its burgeoning operations in Bangladesh, now stretching to nine outlets, have also bolstered its performance.
CBC has again proved itself to be an agile and innovative organisation, moving to take advantage of fluid market conditions. In 2008 it moved quickly to take advantage of increasing deregulation surrounding deposits, launching a special foreign investment deposit account in order to attract foreign inflows. By offering a pioneering high interest rate-saving product of some 12%, designed to effectively battle the country’s rising inflation rates, the bank has also successfully differentiated itself in a challenging economic environment. Throughout the year the bank has continued to expand its retail network, opening its 166th branch in 2008.
“We have always laid emphasis on getting our basics of banking right and concentrated on core banking activities while reaching out to other areas that would enhance fee-based income,” says Amitha Gooneratne, CEO of Commercial Bank of Ceylon. “We have also continued to invest in upgrading technological inputs with the objective of improving service standards and bringing costs under control, with the benefits accruing to all our stakeholders. We plan to continue a similar approach during the forthcoming year which will be a very challenging one.”
