FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 20 JUN 2026 · EOD

COMB

Commercial Bank of Ceylon
BANKS

LAST · LKR

209.00
+2.09 ▲ +1.01%
P/E 5.5× · YIELD 3.8% · ROE 20.3%

52W RANGE

148.13233.10
72% OF RANGE · YTD −7.5%
01 / COMB — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
BUY+20%
250.00LKR · 12-MO
6.5× FY26E

Credit growth revives; ROE holds near 20%.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

A 20% ROE bank at five and a half times

  1. 01

    Buy, LKR 250 target: COMB pairs a 20% ROE — the best among the banks — with a 5.5× multiple, a gap that should close as the recovery matures.

  2. 02

    Sri Lanka's leading private bank benefits as falling rates revive credit growth and asset quality heals post-restructuring.

  3. 03

    A clean balance sheet and resolved sovereign exposure de-risk the earnings base.

  4. 04

    At ~6.5× FY26E our LKR 250 target re-rates a 20% ROE franchise toward its history.

Where we differ from the street
Street viewOur viewWe change our mind if
Banks have run; the easy gains are done.At 5.5× on a 20% ROE there is still a clear gap to mid-cycle multiples.ROE rolling over as NIMs compress.
Post-crisis NPLs linger.Restructuring resolved the sovereign overhang; private-book quality is improving with the economy.A fresh rise in the infection ratio.
Lower rates compress spreads.Volume growth and lower credit costs offset much of the NIM give-back.Sharp NIM compression with no volume offset.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE