My Report
Integrated Report
Investor relations
Managing Director/Chief Executive Officer's and Chief Financial Officer's Statement of Responsibility
Independent Assurance Report - Internal Control
Dear Stakeholder,
Building long-term value and trust
We extend our sincere appreciation to our valued investors who continue to place their trust in the Bank by investing in both our equity and debt instruments. Our unwavering commitment is to maximise returns on your investments through sustainable and prudent growth strategies, ensuring long-term value creation. We recognise our responsibility to provide a comprehensive and transparent overview of the Bank’s and the Group’s financial performance, operational results, and cash flows, enabling informed investment decisions.
As one of Sri Lanka’s two top tier D-SIBs and the largest private sector bank, we remain well-positioned to meet investor expectations. The operating environment in 2024 has improved significantly compared to previous years, creating new opportunities for sustainable expansion. While challenges persist, we have leveraged our resilience, robust governance, and risk management strategies to navigate market dynamics effectively. We are confident that the information provided in this Integrated Report and Financial Statements will further enhance your understanding of our core strengths, financial stability, and strategic direction, fostering continued trust and loyalty among our investor community.
Strengthening investor communication and engagement
The Bank remains dedicated to maintaining strong and transparent communication channels with its investors, fostering mutual trust and confidence. We uphold the rights of investors as stipulated by relevant regulations and actively address material concerns, as detailed in the “Engaging with Stakeholders” section on pages 62 to 65 Our proactive investor engagement consistently exceeds statutory requirements, reinforcing our commitment to best-in-class corporate governance and investor relations.
Our diverse engagement methods ensure that stakeholders receive timely and relevant updates. The Annual Report remains our primary communication tool, complemented by AGMs and EGMs, providing investors with direct opportunities to engage with the Bank’s leadership. In line with our commitment to transparency, this year’s Integrated Annual Report has been presented in a concise and structured format, ensuring clarity and accessibility.
We highly value the insightful feedback provided by our shareholders through surveys and direct engagement. Your input has been instrumental in refining our reporting approach, and to further enhance two-way communication, we have included a stakeholder feedback form in this year’s Annual Report too. We encourage you to share your suggestions and opinions, which will help us align our strategies with investor expectations and enhance long-term value creation.
Expanding digital access to investor information
Our Investor Relations section, accessible at https://www.combank.lk/investors, remains a popular and interactive platform for stakeholders. This section provides access to both PDF and interactive versions of the Bank’s Annual Report, along with regular updates on financial disclosures, corporate actions, and governance developments. Ensuring timely and accurate investor communication remains a key priority, and we continuously enhance our digital platforms to meet evolving stakeholder expectations.
With these ongoing efforts, we reaffirm our commitment to responsible and transparent investor relations, ensuring that all stakeholders are well-informed and engaged in our journey of sustainable value creation.
We strongly believe that the Bank’s effective communication and active engagement with key stakeholders have positioned its shares as a reliable and attractive investment option, despite the various global and local developments as detailed in Operating Environment and Outlook.
Performance of the Colombo Stock Exchange and the Banking Sector in 2024 Graph – 38
Performance of the Colombo Stock Exchange (CSE) in 2024
Building on its impressive performance in 2023, when it ranked among the world’s top-performing stock market indices, the Colombo Stock Exchange (CSE) continued its bullish momentum throughout 2024. The All Share Price Index (ASPI) closed the year at 15,945 points, marking a 49.66% increase from 10,654 points at the end of 2024, compared to the increase of 25.50% in 2023. Similarly, the S&P SL20 Index, which tracks the top 20 most liquid and capitalised stocks, surged by 58.46%, compared to the increase of 16.42% in 2023, closing at 4,862 points compared to 3,068 points in the previous year.
This positive trajectory significantly boosted market capitalisation, which rose to Rs. 5.696 Tn. by the end of 2024, reflecting a 34.05% increase from Rs. 4.249 Tn. at the close of 2023, compared to the increase of 10.44% in 2023. The strong investor confidence, coupled with improved macroeconomic stability, contributed to this substantial market expansion, positioning the CSE as a key driver of economic growth and investment attractiveness in Sri Lanka.
Performance of the Banking sector and Commercial Bank shares in 2024
Against the backdrop of the strong performance of the ASPI and S&P SL20 indices in 2024, the banking sector shares also exhibited significant growth, with the Bank Index rising to 1,337 points by year-end, marking a 67.77% increase compared to 797 points at the end of 2023. While this reflects a commendable performance, the growth rate moderated from the 106.64% increase recorded in 2023.
The Bank’s ordinary voting and non-voting shares saw substantial appreciation, rising by 51.57% and 43.66%, respectively, during 2024. The market prices of ordinary voting shares and ordinary non-voting shares closed at Rs. 144.75 and Rs. 115.50, respectively, compared to Rs. 95.50 and Rs. 80.40 at the end of 2023, as detailed in Table – 31 on page 182.
Despite this strong market performance, the Bank’s ordinary voting shares traded at 0.85 times their book value at the end of 2024, reflecting a discount (compared to 0.58 times in 2023). However, the Bank’s shares continued to command the highest valuation among its peers in the banking sector, reinforcing investor confidence in its financial strength and market leadership.
As of December 31, 2024, the Bank’s public holding (free float) remained high, with ordinary voting shares at 99.79% (99.81% in 2023) and ordinary non-voting shares at 99.88%, unchanged from the previous year. The Bank’s float-adjusted market capitalisation, which is compliant under Option-1 of the CSE minimum public holding requirements, saw a significant increase of 85.21%, rising from Rs. 124.095 Bn. in 2023 to Rs. 229.836 Bn. in 2024.
As shown in Tables – 34 and 35 on page 183, both ordinary voting and ordinary non-voting shares remained actively traded on the CSE, providing investors with a convenient entry and exit mechanism. Trading activity surged notably, with the number of share transactions increasing by 45.84% for ordinary voting shares and 61.40% for ordinary non-voting shares. Additionally, the volume of shares traded grew significantly, up 118.98% for ordinary voting shares and 97.76% for ordinary non-voting shares.
Investor confidence in the Bank’s shares remained strong, as reflected in the increase in shareholder base, with 16,966 shareholders holding voting shares (15,857 – 2023) and 6,342 shareholders holding non-voting shares (5,702 – 2023) at the end of the year, as detailed in Table – 37 on page 184.
Compliance report on the contents of the Annual Report in terms of the Listing Rules of the CSE
We are pleased to confirm that the Bank has fully complied with all relevant provisions of Section 7.6 of the Listing Rules of the CSE concerning the disclosures required in the Annual Report and Financial Statements of a listed entity.
The comprehensive compliance table (Table – 27) presented below provides a detailed reference to all disclosure requirements, including the corresponding sections and page numbers where the required information has been provided in this Annual Report.
The pages that follow contain detailed insights into the performance of the Bank’s listed securities, reflecting market trends, investor activity, and key financial indicators.
Compliance with requirements of the Section 7.6 of the Listing Rules of the CSE Table – 27
| Rule No. | Disclosure requirement | Section/reference | |
| 7.6 (i) | Names of Directors during the financial year and their profiles. | Governance Reports | |
| 7.6 (ii) | Principal activities of the Bank and its subsidiaries during the year and any changes therein. | Note 1.3 to the Financial Statements Group Structure | |
| 7.6 (iii) | Names and the number of shares held by the 20 largest holders of voting and non-voting ordinary shares and the percentage of such shares held. | Item 4.2 of the “Investor Relations” | |
| 7.6 (iv) (a) | The float adjusted market capitalisation, public holding percentage (%), number of public shareholders and under which option the Bank complies with the minimum public holding requirement, in respect of voting ordinary shares. The public holding percentage (%) in respect of non-voting ordinary Shares. | Item 4.3 of the “Investor Relations” | |
| 7.6 (iv) (b) | Public holding percentage (%), and the number of public shareholders of foreign currency denominated Shares. | The Bank has not issued any foreign currency denominated Shares | |
| 7.6 (v) | Details of each Director’s and Chief Executive Officer’s holding in each class of shares of the Bank at the beginning and end of the financial year. | Item 4.4 of the “Investor Relations” | |
| 7.6 (vi) | Information pertaining to material foreseeable risk factors of the Bank. | Item 5 of the “Investor Relations” | |
| 7.6 (vii) | Details of material issues pertaining to employees and industrial relations of the Bank. |
Item 6 of the “Investor Relations” | |
| 7.6 (viii) | Extents, locations, valuations and the number of buildings of the Bank’s land holdings and investment properties. | Note 38.5 (a) and (b) to the Financial Statements | |
| 7.6 (ix) | Number of shares representing the Bank’s stated capital. | Note 51 to the Financial Statements Item 7 of the “Investor Relations” | |
| 7.6 (x) | A distribution schedule of the number of holders in each class of equity securities, and the percentage of their total holdings as at the end of the year. | Item 4.5 of the “Investor Relations” | |
| 7.6 (xi) | Ratios and market price information:
Equity – Dividend per share, dividend payout ratio, net asset value per share, market value per share – highest, lowest values recorded during the financial year and the market value as at the end of the financial year. Debt – Interest rate of comparable Government Securities, debt/equity ratio, interest cover and quick asset ratio, Debt Service Coverage ratio, market prices and yield during the year – High, low and last traded prices. Any changes in credit rating (for the Bank or any other instrument issued by the Bank). |
Financial Highlights
Items 2, 3 and 11 of the
“Investor Relations”
Items 10 and 11 of the “Investor Relations” Item 12 of the “Investor Relations” |
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| 7.6 (xii) | Significant changes in the Bank’s or its subsidiaries’ fixed assets including substantial difference between market value and book value of lands. | Note 38.5 (b) to the Financial Statements | |
| 7.6 (xiii) | Details of funds raised through Initial Public Offering and/or a further issue of Securities during the year. a. the manner in which the funds of such issue/s have been utilised in conformity with the format provided by the CSE from time to time; b. if any shares or debentures have been issued, the number, class of shares or debenture and consideration received and the reason for the issue; and, c. any material change in the use of funds raised through an issue of Securities. |
The Bank raised funds through a right issue during the year Note 51 and 51.1 to the Financial Statements Note 50 to the Financial Statements for the details of shares issued during the year Item 10 of the “Investor Relations” Note 50 and 51 to the Financial Statements |
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| In the event the funds raised through the Initial Public Offering and/or the further issue of Securities (as applicable) have been fully utilised by the Bank as disclosed in the Prospectus and/or Circular to shareholders between two financial periods, the Entity shall disclose such fact in the immediate succeeding Annual Report or the Interim Financial Statements, whichever is published first. | |||
| 7.6 (xiv) | a. Information in respect of Employee Share Option Schemes (ESOS). | ||
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Note 52.1 to the Financial Statements “Employee Share Option Plans” | ||
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Item 24 of the Statement of Compliance | ||
| b. Information in respect of Employee Share Purchase Schemes (ESPS). | |||
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Not applicable as the Bank does not have Employee Share Purchase Schemes | ||
| 7.6 (xv) | Disclosures pertaining to Corporate Governance practices in terms of Section 9 of the Rules. | Required disclosures are given in Annexure 1.3 “Compliance with Section 9 of the Listing Rules issued by the Colombo Stock Exchange” | |
| 7.6 (xvi) | Related party transactions exceeding 10% of the equity or 5% of the total assets of the Bank as per Audited Financial Statements, whichever is lower. Details of investments in a related party and/or amounts due from a related party to be set out separately. The details shall include, as a minimum: i. The date of the transaction; ii. The name of the related party; iii. The relationship between the Bank and the related party; iv. The amount of the transaction and terms of the transaction; v. The rationale for entering into the transaction. | The Bank did not have any related party transactions exceeding this threshold during the year 2024 and as at end 2024 (Note 62.6 to the Financial Statements) Item 20.3 of the Statement of Compliance | |
| 7.6 (xvii) | Disclosures on foreign currency denominated securities listed on the CSE | The Bank has not issued foreign currency denominated securities | |
| 7.6 (xviii) | Disclosures on the Sustainable Bonds listed on the CSE | The Bank has not issued Sustainable Bonds | |
| 7.6 (xix) | Disclosures on Perpetual Debt Securities listed on the CSE | The Bank has not issued any Perpetual Debt Securities | |
| 7.6 (xx) | Disclosures on Infrastructure Bonds listed on the CSE | The Bank has not issued any Infrastructure Bonds | |
| 7.6 (xxi) | Disclosures on Shariah Compliant Debt Securities listed on the CSE | The Bank has not issued any Shariah Compliant Debt Securities | |
| 7.6 (xxii) | Disclosures on High Yield Corporate Debt Securities listed on the CSE | The Bank has not issued any High Yield Corporate Debt Securities |