BOC’s Record Profits Signal Renewed Strength in Sri Lankan Banking

The Bank of Ceylon (BOC) has closed the first nine months of 2025 with one of its strongest financial performances in recent years, reaffirming its position as the backbone of Sri Lanka’s banking sector.

The state-owned lender posted a Profit  Before Tax (PBT) of Rs. 87.7 billion, more than doubling its earnings from the same period in 2024 and underscoring its ability to expand despite challenging macroeconomic conditions.

Chairman Kavinda de Zoysa said the latest results reflect BOC’s commitment to financial inclusion and the country’s broader economic recovery. “Our strategy balances profitability with purpose. By empowering youth, SMEs, and underserved communities, we are strengthening livelihoods and the nation’s long-term resilience,” he noted.

Much of the bank’s stellar performance stems from its core banking operations. Net Interest Income surged 62% to Rs. 153.2 billion, supported by effective repricing strategies and a favourable interest rate environment. Interest income grew 15% to Rs. 368.1 billion, while interest expenses fell 5% a combination that significantly boosted margins.

Non-fund-based income also contributed strongly, with fee and commission revenue rising 11% to Rs. 16.8 billion amid increased digital banking activity and remittance flows.

BOC’s total operating income climbed 61% to Rs. 181.1 billion, while expenses grew only 6%, pushing the cost-to-income ratio down to an efficient 32%. After paying Rs. 23.4 billion in taxes on financial services and Rs. 31.9 billion in income tax, the bank reported a solid Profit After Tax of Rs. 55.7 billion. In total, BOC contributed Rs. 55.3 billion in taxes to the Treasury during the period.

Acting GM/CEO Y.A. Jayathilaka attributed the strong results to customer trust and staff dedication. He said the bank’s emphasis on responsible growth and digital innovation will continue guiding its strategy. “Each step we take is geared towards expanding opportunity and driving shared prosperity,” he said.

BOC’s assets rose 11% to Rs. 5.5 trillion by end-September, driven largely by investments in government securities. Loans increased to Rs. 2.5 trillion, reflecting renewed credit demand, while deposits rose 9% to Rs. 4.6 trillion. Despite these expansions, the bank maintained firm risk controls, recording an 18.7-billion-rupee impairment charge and holding Stage 3 loan coverage at 56.24%.

Key indicators remained robust, with ROA at 2.22% and ROE at 22.82%. Capital ratios also stayed comfortably above Basel III thresholds. Digital banking continued to expand, particularly through BOC Flex, Smart Remit, and the newly launched BizPlus Credit Card for MSMEs.

Expanding inclusion on the ground, the bank opened 50 new Agent Banking Centres and launched BOC Connect Analathivu, while the Gammana programme continued uplifting rural communities.

With major international rankings, brand awards, and an AA-(lka) Fitch rating, BOC heads into the final quarter poised for further growth as it strengthens digital services, SME lending, and sustainability initiatives nationwide.