COMB
Commercial Bank of CeylonLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 344bn
- P/E (ttm)
- 5.5×
- EPS (ttm)
- 38.09
- Dividend yield
- 3.8%
- Return on equity
- 20.3%
- Beta
- 0.64
- Free float
- 43%
- 52W high
- 233.10
- 52W low
- 148.13
- 1D change
- +1.01%
- YTD return
- −7.5%
Commercial Bank of Ceylon is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
A 20% ROE bank at five and a half times
- 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.
- 02
Sri Lanka's leading private bank benefits as falling rates revive credit growth and asset quality heals post-restructuring.
- 03
A clean balance sheet and resolved sovereign exposure de-risk the earnings base.
- 04
At ~6.5× FY26E our LKR 250 target re-rates a 20% ROE franchise toward its history.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 63.0 | 68.0 | 75.0 |
| EPSLKR | 38.0 | 41.0 | 45.1 |
| DPSLKR | 7.9 | 8.5 | 9.2 |
| P/E× | 5.5× | 5.1× | 4.6× |
| EPS growth% | — | +8.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
NIM compresses; asset quality wobbles.
4.5× stressed EPS
Credit growth revives; ROE holds near 20%.
6.5× FY26E
Full re-rate to mid-cycle on a 20% ROE.
7.5× FY27E
Has the bank re-rate already happened?
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.
Is asset quality really healed?
Post-crisis NPLs linger.
Restructuring resolved the sovereign overhang; private-book quality is improving with the economy.
A fresh rise in the infection ratio.
NIM as rates fall?
Lower rates compress spreads.
Volume growth and lower credit costs offset much of the NIM give-back.
Sharp NIM compression with no volume offset.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 41.1 | FY25 base +8% |
| Target multiple | ~6.5× FY26E | re-rate on a 20% ROE |
| Implied P/B | ~1.2× | consistent with a 20% ROE |
| 12-month target | LKR 250 | ≈6.5 × 41.1, rounded |
- 01NIM compressionWATCH · Policy rate, quarterly NIM
- 02Asset qualityWATCH · Infection ratio
- 03Sovereign exposureWATCH · T-bond holdings, yields
- 04Credit-growth paceWATCH · Advances growth
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| COMBCommercial Bank of Ceylon— THIS PAGE | 209.00 | +1.01% | 5.5× | 344bn | |
| HNBHatton National Bank | 402.12 | +0.66% | 4.9× | 224bn | |
| SAMPSampath Bank | 143.67 | +1.32% | 5.5× | 169bn |
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.