Performance of the Bank’s Bangladesh Operations

The performance of the Bank’s operations in Bangladesh (CBC Bangladesh) will have to be reviewed in conjunction with the Operating Context and Outlook section of this report.

CBC Bangladesh commenced its operations in November 2003 through the acquisition of Credit Agricole Indosuez’s banking business. Over the past two decades, it has established itself as a prominent player in the country’s banking sector. With a well-diversified network of 20 operating units, including 11 branches, a sub-branch, six SME centers, and two offshore banking units, CBC Bangladesh has secured a strong market presence. The bank has strategically positioned itself as a premier regional institution, specialising in corporate banking, consumer banking, treasury management, and digital banking.

By the end of 2024, CBC Bangladesh operated 24 ATMs, including seven at off-site locations. Furthermore, the Bank introduced an Automated Banking Centre (ABC) at its Motijheel Branch, featuring a real-time Cash Deposit Machine, Cheque Deposit Machine, KIOSK machine, and digital signage to enhance customer convenience.

Recognised as the top-performing regional bank, CBC Bangladesh continues to excel in deposits, advances, and profitability. This success is driven by its unwavering commitment to service excellence, customer satisfaction, and operational efficiency, with a focus on the following key areas:

Corporate Banking:

In the corporate banking sector, CBC Bangladesh has established itself as a leading regional bank since its inception. This success is driven by its commitment to providing exceptional relationship banking services, fostering strong client partnerships, and significantly expanding its corporate banking portfolio.

Consumer Banking:

In consumer banking, CBC Bangladesh strives to be the preferred provider of retail, SME, and credit card services for its target market. To achieve this, the Bank leverages a cutting-edge IT platform and introduces innovative products, focusing on building a well-balanced deposit mix supported by a strong savings base.

Treasury Management:

In treasury management, CBC Bangladesh maintains consistent and efficient fund management by leveraging its expertise to offer a diverse range of innovative treasury products.

Digital Banking:

CBC Bangladesh is committed to customer satisfaction through digital transformation, enhancing efficiency, security, and innovation. The bank has upgraded IT infrastructure, strengthened governance, and implemented RTGS Montran Gateway, SBS-2 and A-Challan. To accelerate digitalisation, CBC Bangladesh is introducing Host-to-Host Integration, iCashpro, wallet integration, e2gen Payment Hub, Loan Origination System, an independent Islamic banking solution, and custodial service automation. AI-driven transaction monitoring, e-KYC, and biometric authentication will enhance security and customer experience. Cloud-based core banking and open banking initiatives will ensure agility and seamless Fintech integration.

Human Resources:

CBC Bangladesh is recognised as a preferred employer in the banking industry, distinguished by its commitment to professional growth. The Bank provides exceptional training and development opportunities, introduces top-tier banking education programs, and cultivates a dynamic and supportive corporate environment.

CBC Bangladesh currently operates in five key districts: Dhaka, Chittagong, Sylhet, Narayanganj, and Gazipur. Despite intense competition from both international and major local banks, it has consistently expanded its business volumes. This growth is driven by a strong commitment to serving multinationals and large local corporates with superior banking solutions. Additionally, the strategic expansion of its branch network has enabled CBC Bangladesh to attract more SME and retail clients, strengthening its low-cost deposit base, optimising funding costs, and enhancing overall profitability.

Corporate Social Responsibility (CSR) Activities

CSR is an integral part of CBC Bangladesh Culture. Through different projects the Bank contributed to the community but main focus is to help millions of Underprivileged section of the society particularly poor students/children in Bangladesh. CBC Bangladesh has always been active in social responsibility projects since the beginning.

During the year 2024, CSR expenses were BDT 7.03 Mn. in addition to special CSR expenses incurred (BDT 15.58 Mn. allocated in 2021-23) to mitigate the impact of the countrywide COVID-19 crisis. More details are given on page150.

Key Achievements during the year

In 2024, CBC Bangladesh received numerous awards and recognitions, including:

1. Best Foreign Bank in Bangladesh – 2024 by Global Economic Limited, UK based magazine for 5th consecutive year
2. Most Sustainable Bank in Bangladesh – 2024 by International Business Magazine, UAE based magazine for 4th consecutive year.
3. Most Recommended Foreign Bank in Bangladesh – 2024 by World Business Outlook, Singapore based magazine for 4th consecutive year.
4. Best Corporate Bank Bangladesh – 2024 by Global Business Review Magazine, UAE based magazine for 3rd consecutive year.
5. Bangladesh International Trade Finance Bank of the Year – 2024 by Asian Banking & Finance Magazine, Singapore based magazine for 2nd consecutive year.
6. Best Customer Service Foreign Bank – Bangladesh 2024 by International Finance, UK based magazine.
7. Best Working Place In The Banking Sector Bangladesh – 2024 by World Business Stars Magazine, UK based magazine for 2nd consecutive year.
8. Best Corporate Governance Bank Bangladesh – 2024, Best Banking CEO of the Year – 2024, and Best Customer Services Provider Bank Bangladesh – 2024 by Global Business and Finance Magazine, USA based magazine for 2nd consecutive year.

The progress of CBC Bangladesh operations in core banking areas over the past five years is given below:

Key performance indicator – Bangladesh Operations (based on Management Accounts) Table – 25

As at December 31,	2024 BDT Bn.	2023 BDT Bn.	2022 BDT Bn.	2021 BDT Bn.	2020 BDT Bn.	5-Year CAGR %
Total deposits	103.830	96.917	71.243	64.959	50.997	18.01
Gross advances	73.893	64.002	51.561	58,111	55.039	9.26
Profit before tax	10.241	8.792	5.424	3.035	2.898	30.12
Profit after tax	5.941	4.663	2.954	1.744	1.709	28.48

Key Financial Ratios – Bangladesh Operations
(based on Management Accounts) Table – 26

Indicator	2024	2023	2022	2021	2020
Cost/Income ratio (%)	10.56	13.37	16.47	23.68	24.76
Net Interest Margin (%)	6.54	5.03	4.05	3.21	4.01
Profit Per Employee (BDT Mn.)	27.53	24.76	16.95	10.25	9.96
ROA (%)	7.06	6.71	5.61	3.2	3.46
ROE (%)	23.09	23.08	17.95	12.24	13.32

Subsidiaries and associate of the Group

Given below is a brief overview of the operations of the subsidiaries and the associate of the Bank.

Performance of the local subsidiaries

Commercial Development Company PLC (CDC)

Founded in 1980 as the Bank’s first subsidiary, CDC owns the Head Office building, “Commercial House”, along with two properties in Negombo and Tangalle. The Bank holds a 90% stake in CDC.

CDC is the Group’s only listed subsidiary, with a market capitalization of Rs. 1.692 Bn. as of end-2024 (2023 – Rs. 1.341 Bn.). Its core operations include property rentals, vehicle hiring, outsourcing of non-core staff, and providing various utility services to the Bank.

In 2024, CDC reported a post-tax profit of Rs. 582.623 Mn., reflecting a 98.13% increase from Rs. 294.060 Mn. in 2023, primarily driven by higher fair value gains on Investment Properties. Revenue from core business activities grew modestly by 3.02% to Rs. 708.260 Mn. (2023 – Rs. 687.511 Mn.), while the cost of sales declined slightly by 1.61% to Rs. 413.999 Mn. (2023 – Rs. 420.758 Mn.). As a result, gross profit rose by 10.31% to Rs. 294.261 Mn. (2023 – Rs. 266.753 Mn.). However, net finance income dropped by 16.30% to Rs. 104.071 Mn. in 2024 (2023 – Rs. 124.343 Mn.) owning to the drop in the market interest rates.

CDC’s profit before tax surged by 79.46% to Rs. 829.055 Mn. in 2024 (2023 – Rs. 461.977 Mn.) mainly due to fair value gains on its investment property significantly increasing to Rs. 479.340 Mn. in 2024 compared to Rs. 97.895 Mn. in 2023. The Company’s total assets grew by 13.48%, reaching Rs. 4.909 Bn. at the end of 2024, compared to Rs. 4.326 Bn. in 2023.

CBC Tech Solutions Limited

CBC Tech Solutions Limited, a fully owned subsidiary of Commercial Bank of Ceylon PLC, continues to be a key enabler in the Bank's digital transformation journey by providing cutting-edge Information Technology services and solutions. The company also extends its expertise to the Bank’s subsidiaries, reinforcing its position as a trusted technology partner.

The core business areas of CBC Tech Solutions encompass IT services, hardware sales and software licensing, hardware maintenance, software development, and resource augmentation.

In 2024, CBC Tech Solutions expanded its service footprint with the establishment of its seventh service center in Anuradhapura, enhancing support across the North Central Province and improving service efficiency. Over the past 20 years, the company has supported seamless IT operations for the Bank, including maintenance of computers, servers, and POS systems, as well as technical support.

The Company strengthened its business development efforts through its new Business Development Unit, forging strategic partnerships with global technology leaders like Nutanix, IBM, and Qualys to introduce innovative solutions. It also prioritized AI and Data Science to optimize customer experiences, decision-making, and risk management, contributing to the Bank's digital transformation.

CBC Tech Solutions made strides in software development, broadening its market reach and enhancing product customisation. It expanded its resource augmentation capabilities, providing skilled professionals to meet evolving business needs. Notable achievements include being recognised as a Lenovo Tier 2 Retail Partner, leading Lenovo product sales, and receiving the Great Place to Work Certification in 2024. Additionally, the Company relocated to a state-of-the-art facility, promoting operational efficiency, collaboration, and employee well-being.

The Company recorded a total revenue of Rs. 1.169 Bn., in 2024, recording a commendable growth of 43.81% from Rs. 0.813 Bn., in 2023. This remarkable revenue expansion was driven primarily by increased hardware and software sales.

The Company’s pre-tax profit for the year 2024 stood at Rs. 102.105 Mn. which recorded a drop of 55.32% compared to Rs. 228.546 Mn., recorded for 2023. This reduction was attributable to higher costs of sales, a decline in net finance income and increase in operating expenses including costs associated with the relocation to the new office premises.

The post-tax profit for 2024 was Rs. 62.358 Mn., reflecting a significant drop of 64.07% compared to the Rs. 173.573 Mn., recorded for the year 2023. Despite this decrease in profits, CBC Tech Solutions remains steadfast in its long-term growth strategy, focusing on expanding service offerings, enhancing operational efficiencies, and strengthening its market position.

CBC Finance Limited (CBCF)

CBC Finance Ltd (CBCF), a fully owned subsidiary of Commercial Bank of Ceylon PLC, is a Licensed Finance Company (LFC) operating under the Finance Business Act No. 42 of 2011. Following its rebranding from Serendib Finance Ltd to CBCF, the Company launched an ambitious image-enhancement campaign. In addition, it further bolstered its governance structure and strengthened synergies with its parent company, Commercial Bank of Ceylon PLC.

Sri Lanka’s financial sector showed recovery and resilience in 2024, driven by strategic policies and reforms, with continued efforts needed to sustain stability and inclusivity. In this backdrop, the CBCF achieved a 33.64% increase in gross income, reaching Rs. 2.661 Bn., compared to Rs. 1.991 Bn., in 2023. The interest income of the CBCF’s increased to Rs. 2.271 Bn., from Rs. 1.767 Bn., in 2023 by 28.52%, driven by an expansion in its lending portfolio. The interest expenses for the year amounted Rs. 1.399 Bn., compared to Rs. 1.271 Bn., in 2023 which represented an increase of 10.10%. Consequently, the net interest income improved to Rs. 872.079 Mn., in 2024, with a commendable growth of 75.65% from Rs. 496.478 Mn., in 2023. Additionally, net fee and commission income surged by 129.37%, rising to Rs. 269.266 Mn., from Rs. 117.393 Mn., in 2023. This growth contributed to an improvement in total operating income, which increased to Rs. 1.240 Bn., in 2024, from Rs. 0.688 Bn., in the previous year with an increase of 80.18%.

Impairment charges and other losses decreased significantly by 50.82%, dropping to Rs. 236.865 Mn., from Rs. 481.615 Mn., in 2023, reflecting strengthened credit risk management efforts. As a result, net operating income rose significantly to Rs. 1.003 Bn., in 2024, from Rs. 0.207 Bn., in 2023 by 385.46%.

During the year, the CBCF’s total operating expenses increased to Rs. 742.811 Mn., reflecting a 40.88% increase from Rs. 527.272 Mn., in 2023. Despite this, the CBCF achieved a net profit of Rs. 81.541 Mn., marking a remarkable turnaround of 136.21% from the net loss of Rs. 225.178 Mn., recorded in the previous year.

By capitalising on market opportunities arising from lower interest rates, the CBCF’s total assets grew to Rs. 16.861 Bn., by the end of 2024, up from Rs. 12.457 Bn., at the end of 2023, by 35.35%. Additionally, the net loans and receivables portfolio grew to Rs. 13.445 Bn., by end of 2024, compared to Rs. 10.142 Bn., at the end of 2023, by 32.56%. The drive to attract deposits remained strong amid intense competition, and by the end of the year, the deposit portfolio grew to Rs. 10.311 Bn., from Rs. 6.534 Bn., at the end of 2023. This growth was driven by increased public confidence in the Company.

During 2024, the Company made significant strides in strengthening its corporate culture, fostering a workplace built on integrity, innovation, and inclusivity. Employee engagement was enhanced through targeted training programs, leadership development, and a culture of continuous learning. A strong emphasis was placed on ethical business practices, compliance, and transparency to reinforce accountability.

Earning the prestigious “Great Place to Work” certification is a testament to the CBCF’s unwavering commitment to fostering a positive, inclusive, and high-performance workplace. This achievement reflects the Company’s continuous efforts to strengthen corporate culture and enhance employee engagement, creating an environment where people feel valued, motivated, and empowered to excel.

The CBCF expanded its delivery channels by opening branches in Chilaw, Galle and Ratnapura during the year 2024 in strategically important business areas to enhance its presence and is planning to expand its branch network in the year 2025. The Company has already planned to set up the Corporate Office in Colombo and relocate two branches in 2025 to provide a better customer experience.

Commercial Insurance Brokers (Pvt) Ltd (CIBL)

The Bank owns a 60% stake in CIBL, which specialises in insurance brokering across various insurance categories through reputable life and general insurance companies in Sri Lanka.

For the year ended December 31, 2024, CIBL recorded a post-tax profit of Rs. 45.192 Mn., up from Rs. 43.800 Mn. in 2023. Its total assets grew to Rs. 834.133 Mn. as of December 31, 2024, compared to Rs. 815.257 Mn. in the 2023.

Local associate

Equity Investments Lanka Ltd. (EQUILL)

The Bank holds a 22.92% stake in EQUILL, a venture capital company operating for 34 years. EQUILL primarily invests in equity and equity-featured debt instruments. In 2024, EQUILL reported a net loss of Rs. 2.008 Mn., as against the net profit of Rs. 15.248 Mn. reported in 2023.

Performance of foreign subsidiaries

Commercial Bank of Maldives Private Limited (CBM)

The Commercial Bank of Maldives (CBM), established in partnership with Tree Top Investments (TTI), has strategically leveraged local market expertise to expand financial services in the Maldives. Since its inception in 2016, CBM has steadily grown, now operating two branches and six Self-service terminals including two offsite ATMs. This expansion underscores CBM’s commitment to technological advancement and customer-centric banking solutions.

As CBM continues to expand its portfolio of financial services, its vision is to establish itself as the leading financial institution in the Republic of Maldives. By embracing cutting-edge technology, fostering continuous innovation, and prioritising customer-centric solutions, CBM aims to redefine banking excellence in Maldives, ensuring seamless and superior financial experiences for all its clients.

CBM's commitment to sustainable growth and customer-centric solutions has yielded exceptional results over the financial year 2024. Gross loans and advances grew by MVR 307.474 Mn., (32.41%), driven by innovative products, strategic partnerships, and an aggressive retail expansion strategy.

Customer deposits increased by MVR 459.748 Mn. (16.51%), reflecting the trust customers place in CBM and the Bank’s dedication to delivering superior financial services. This success has enabled CBM to expand its offerings and create lasting value for all stakeholders.

As at December 31, 2024, CBM’s total asset base expanded by MVR 674.045 Mn., reflecting a 20.75% growth, reaching MVR 3.922 Bn. This remarkable increase was driven by strong deposit growth and robust treasury operations, further strengthening the CBM’s presence in the Maldivian financial landscape.

These achievements, combined with enhanced operational efficiency, contributed to total operating income of MVR 179.545 Mn., representing a growth of MVR 36.193 Mn. or 25.25% compared to the previous year.

While reporting exceptional operating performance, the CBM prudently allocated impairment provisions totalling MVR 34.971 Mn. during the year, primarily due to the downgrade of sovereign ratings by Fitch Ratings from B- to CC during the year.

CBM reinforced its corporate social responsibility initiatives by supporting the “Back to School 2024” campaign, which provided essential supplies to children from underprivileged backgrounds. Additionally, CBM actively participated in the Mission for Migrant Workers Maldives initiative, offering financial literacy programs tailored to migrant communities. CBM also played a key role in the Maldives Living Expo, where it actively promoted its home loan services and provided comprehensive information on its diverse range of banking products and services. Furthermore, the Bank hosted an Open Day session at Artificial Beach, allowing the public to explore its products and services first-hand.

A major milestone for CBM in 2024 was the successful launch of UnionPay cards, 1st time in the Maldives, significantly enhancing global financial connectivity. Additionally, The introduction of USD ATMs further improved convenience for customers.

Looking ahead, CBM remains dedicated to technological advancement, expansion, innovation, and enhancing customer experience, with an unwavering focus on financial inclusion, cutting-edge banking solutions, and community development.

CBC Myanmar Microfinance Company (CBC Myanmar)

CBC Myanmar, a fully owned subsidiary of the Bank, commenced operations in July 2018 with the establishment of its head office and inaugural branch in Lewe Township, Nay Pyi Taw. Committed to fostering financial inclusion, the company has consistently expanded its reach, offering accessible and responsible microfinance solutions to underserved rural and semi-urban communities across Myanmar.

With a strong focus on economic empowerment, CBC Myanmar has introduced innovative financial products and strengthened its support services to help individuals and small businesses thrive. By providing tailored financial solutions, the company has played a vital role in supporting entrepreneurs, farmers, and cottage industry business owners, contributing to sustainable growth and economic stability.

In 2024, the CBC Myanmar strategically expanded its presence in the Mandalay Region, Myanmar’s second-largest commercial hub, by establishing three new branches. This expansion enabled service provision across five additional townships, increasing its footprint to eight branches across two regions and extending financial services to 13 townships.

Furthermore, CBC Myanmar demonstrated remarkable growth compared to the previous year, achieving a 56% increase in loan disbursements, reaching MMK 10.0 Bn. The total loan portfolio grew by 49.49% to MMK 6.832 Bn. while the number of active borrowers grew by 34%.

The CBC Myanmar also made significant progress in improving portfolio quality, successfully reducing non-performing loans by 30% compared to 2023. Additionally, CBC Myanmar maintained an exceptional recovery performance, achieving a 99% recovery ratio in 2024. These accomplishments highlight its proactive risk management strategies, enhanced collection efficiencies, and strengthened borrower engagement, reinforcing its financial stability and long-term sustainability.

Despite macroeconomic and industry-specific challenges, the CBC Myanmar achieved a 51.53% increase in revenue, reaching MMK 1.522 Bn. compared to the previous year, while effectively managing expenses growth at approximately 14.68%. CBC Myanmar successfully transitioned from an MMK 154.383 Mn., loss in 2023 to a profit of MMK 27.971 Mn., in 2024. This financial turnaround was driven by robust loan recovery efforts, optimised interest income, and the implementation of a cost-effective operational model.

In alignment with its commitment to environmental sustainability, CBC Myanmar has proactively adopted measures to reduce its carbon footprint. Key initiatives include the installation of power storage systems at five locations, including the head office, and the complete transition of one branch to solar energy. These efforts have significantly reduced fuel consumption and minimized paper usage in daily operations, reinforcing its commitment to green initiatives and responsible business practices.

Looking ahead to 2025, CBC Myanmar remains committed to expanding financial inclusion and fostering entrepreneurship, backed by a planned capital infusion from the parent company and borrowings secured through standby letter of credit facilities. With an anticipated portfolio growth, the CBC Myanmar aims to introduce new loan products, enhance digital services, strengthen green initiatives, and further extend its branch network. Through these strategic initiatives, CBC Myanmar looks forward to another year of empowering communities and transforming lives across Myanmar.