Sri Lanka based Commercial Bank of Ceylon (CBC), is now operating CBC Myanmar Microfinance Company Limited, with much success, official sources said.
The newly formed microfinance institution (MFI) is offering group and individual loans to low-income borrowers from its office in the city of Nay Pyi Taw in Myanmar.
CBC Myanmar received its micro lending license in January 2018, and it is pursuing a license to accept deposits. After it develops its micro lending and deposit services, CBC Myanmar plans to expand into micro insurance and remittances.
Since 2015, CBC has operated a representative office in the city of Yangon, from which it offers lending, deposit, money-transfer and advisory services.
Founded in 1920, CBC has subsidiaries providing financial, information technology and property development services in Bangladesh, Italy, Myanmar and Sri Lanka.
The only Sri Lankan Bank to be ranked among the world’s top 1000 banks for eight years consecutively, Commercial Bank operates a network of 263 branches and 800 ATMs in Sri Lanka.
Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets; Myanmar, where it has a Representative Office in Yangon and a Microfinance company in Nay PyiTaw; and the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake.
The Commercial Bank of Ceylon PLC has reported an operating profit of Rs 31.6 billion for the year ended 31st December 2018, reflecting a growth of 12.8% before taxes on financial services, in a financial performance Sri Lanka’s benchmark private bank describes as a “perfect example of progress under duress.”
Profit before income tax improved by 10.4% to Rs 25.6 billion, a lower rate of growth attributable to the introduction of the Debt Repayment Levy (DRL) effective 1st October 2018, the Bank said in a filing with the Colombo Stock Exchange (CSE).
Profit after tax at Rs 17.5 billion represented an increase of 5.8% principally due to the substantially higher income taxes the Bank was required to pay under the new tax regime introduced by the Government in the year under review, which took away most of the tax concessions previously enjoyed by the banking industry.