• ROA expected to exceed 2% with strong growth in assets
• ROE to reach 19.4% in 2024, reflecting improved performance

Sri Lanka’s leading state bank, Bank of Ceylon (BOC) is expected to reach a total asset base of Rs. 4.9 trillion by the end of the 2024 fiscal year with return on assets (ROA) expected to surpass 2%, Economic Development Deputy Minister Prof. Anil Jayantha Fernando.

Speaking in Parliament yesterday (23), Fernando said the bank’s total asset base which stood at Rs. 4.4 trillion by the end of 2023 climbed to Rs. 4.6 trillion by the end of September 2024 and is forecasted to reach Rs. 4.9 trillion by the end of 2024.

He said that the ROA of the bank which stood at 0.9% at the end of 2023 is forecasted to surpass 2% by the end of 2024 and reach 2.3% and 2.4% by the end of 2025 and 2026 respectively.

Moreover, he said that the bank’s return on equity (ROE) is returning to the usual levels after years of mismanagement at the bank, as ROE is expected to reach 19.4% by the end of 2024 from 10.6% in 2023.

He added that BOC forecasts the ROE to stabilise in 2025 at 17.8% and 16.7% in 2026.

Fernando also said that the bank’s operating cost has reached Rs. 48.9 billion by the end of September 2024 after recording Rs. 52.3 billion in 2023.

Further, he said that the lending margin rate of BOC is expected to reach 3.8% by the end of 2024 after recording 2.8% by the end of September 2024 and 2.1% by the end of 2023.