Performance of Bangladesh operations and subsidiaries

The performance of CBC Bangladesh during FY2025 unfolded against a transformative year for Bangladesh’s economy and financial system. FY2025 marked a decisive shift from debt-driven expansion toward a reform-oriented macroeconomic framework, as policymakers prioritised correcting structural imbalances and strengthening institutional accountability ahead of anticipated political stability in the country.

This evolving landscape was characterised by the following key developments:

• Moderated economic growth: Real GDP growth is estimated at 3.7%–3.8% (2024: 4.2%) due to contractionary monetary policy and supply chain disruptions.

• Elevated inflation: Headline inflation averaged between 8.2% and 9.4%, a slight improvement from the double-digit levels seen in the previous year.

• External sector: The economy navigated shifting global trade dynamics, prompting stronger emphasis on export diversification and trade competitiveness.

• Watershed moment in the banking sector: 2025 marked a watershed moment as the regulator shifted from forbearance to decisive intervention, merging five distressed banks into a Consolidated Islamic Bank (approx. BDT 2.20 Tn. in assets) and enacting the Bank Resolution Ordinance 2025 to strengthen supervisory powers and restore confidence despite short-term liquidity tightening.

CBC’s Bangladesh operations

Since commencing operations in November 2003 following the strategic acquisition of Credit Agricole Indosuez, CBC Bangladesh has evolved into a well-established and respected foreign bank within the country’s financial sector. Over more than two decades, CBC Bangladesh has strengthened its franchise through disciplined growth, operational resilience and a strong client-centric approach.

As at December 31, 2025, CBC Bangladesh operated 20 strategic operating units comprising 11 fully fledged branches, one sub-branch, six SME Centres and two Offshore Banking Units. Customer reach was further enhanced through a network of 25 ATMs, including seven off-site locations, ensuring seamless accessibility across key commercial regions.

Operating across five major economic hubs – Dhaka, Chittagong, Sylhet, Narayanganj and Gazipur - CBC Bangladesh continued to expand business volumes despite heightened competition and a moderating economic environment. This growth is driven by a balanced dual-track strategy: maintaining strong relationships with blue-chip corporate clients while selectively expanding into SME and retail segments to optimise funding costs and strengthen deposit granularity.

Recognised as a leading foreign bank in Bangladesh, CBC Bangladesh continues to demonstrate steady deposit growth, prudent credit expansion and sustainable profitability. This performance is supported by a disciplined operating model anchored in operational efficiency, robust risk management and a client-focused service philosophy, delivered through CBC Bangladesh’s core business pillars outlined below.

Corporate banking

As one of the main players in the market, the Corporate Banking Division of CBC Bangladesh operates on a strong “Relationship-First” philosophy. During 2025, despite challenging market conditions, CBC Bangladesh expanded its portfolio by fostering high-value partnerships with multinational corporations and large local conglomerates. The division provided sophisticated credit and advisory solutions tailored to the Bangladeshi economic context, supporting clients in a dynamic business environment.

Consumer banking

CBC Bangladesh is steadily strengthening its position as a preferred partner for Retail and SME clients. By leveraging a state-of-the-art IT ecosystem, CBC Bangladesh introduced innovative products designed to maintain a balanced deposit mix and a robust savings base. These initiatives have enhanced customer engagement and supported sustainable business growth within the segment.

Treasury management

CBC Bangladesh’s Treasury Division, recognised as one of the prominent treasuries in the sector, continues to demonstrate strong fund management capabilities. By utilising global expertise together with local market intelligence, the division offers a diverse suite of innovative treasury products. This ensures consistent liquidity management, optimised returns and an advisory role for corporate clients operating in a volatile market environment.

Digital banking

CBC Bangladesh strengthened and upgraded its digital infrastructure while reinforcing governance frameworks through the integration of the RTGS Gateway, SBS-2 and A-Challan systems. The full implementation of a Loan Origination System enhanced credit processing efficiency.

Looking ahead, the digital roadmap includes the introduction of Host-to-Host Integration, iCashPro, a new internet banking platform for corporate clients and the e2gen Payment Hub. By embedding AI-driven transaction monitoring, e-KYC and biometric authentication, CBC Bangladesh continues to strengthen security standards. The adoption of Open Banking initiatives further enhances operational agility and supports future-ready scalability.

Human resources

Distinguished as an “Employer of Choice,” CBC Bangladesh continues to invest in the professional development of its workforce. Commitment to high-quality banking education and a supportive corporate culture has contributed to strong talent retention and a resilient, balanced workforce, even amid global economic shifts.

Corporate social responsibility (CSR) activities

At CBC Bangladesh, CSR represents a core cultural value. CBC Bangladesh remains committed to uplifting underserved communities, with a focused emphasis on the education and welfare of children and students across the country.

In 2025, CBC Bangladesh invested a substantial amount in CSR activities, reaffirming its role as a socially conscious corporate citizen committed to the sustainable development of Bangladesh.

Key achievements during the year

In 2025, CBC Bangladesh solidified its position as the region’s most awarded foreign bank, receiving over 20 accolades that validate its operational excellence, stability, and innovation.

The following highlights represent the Bank’s core achievements across key strategic pillars:

• Financial stability: For the 15th consecutive year, Credit Rating Information and Services Ltd (CRISL) assigned CBC Bangladesh its highest “AAA” rating.

• Regional dominance: The Bank was named Best Foreign Bank in Bangladesh by Global Economic Limited, UK (6th consecutive year) and World Economic Magazine, USA (2nd consecutive year).

• Segment excellence: Recognised as the Best Corporate Bank Bangladesh by Global Business Review Magazine, UAE (4th consecutive year) and named International Trade Finance Bank of the Year by Global Business and Finance Magazine, USA (3rd consecutive year).

• Institutional strength: CBC Bangladesh swept the Indian Chamber of Commerce awards for the 3rd consecutive year, winning for excellence in Asset Quality, Growth, and Profitability.

• Sustainability: Affirmed as the Most Sustainable Bank in Bangladesh by International Business Magazine, UAE (5th consecutive year).

• Women’s empowerment: Honoured with the award for Most Innovative Women Empowerment Initiatives – Banking by Women’s Tabloid, UK, (2nd consecutive year).

• Leadership: CEO, Mr Najith Meewanage was honored as Best Banking CEO of the Year – 2025 by Global Business and Finance Magazine, USA (3rd consecutive year).

• Innovation: The Bank received top honors for Most Innovative Foreign Banking Solutions by Gazet International Global Magazine, Singapore (2nd consecutive year) and Excellence in Digital Banking (specifically for CBC Digital & e Passbook) by Brands Review Magazine, UK.

• Employer of choice: Named the Best Working Place in the Banking Sector Bangladesh by World Business Stars Magazine, UK (3rd consecutive year).

Beyond these primary accolades, CBC Bangladesh earned an additional 12 recognitions covering customer centricity, digital transformation, and women empowerment. This comprehensive list of honours reinforces the Bank’s reputation for delivering high-value, client-centric solutions within a complex macroeconomic landscape.

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

Key performance indicators – Bangladesh operations Table – 51

As at December 31,	2025 BDT Bn.	2024 BDT Bn.	2023 BDT Bn.	2022 BDT Bn.	2021 BDT Bn.	5-Year CAGR %
Total deposits	126.070	105.218	97.843	71.963	64.960	19.84
Gross advances	84.455	74.878	65.112	52.215	58.374	8.81
Profit before tax	10.616	7.674	8.048	4.490	2.534	36.69
Profit after tax	6.351	4.755	4.740	2.535	1.543	37.06

Key financial ratios – Bangladesh operations Table – 52

Indicator	2025	2024	2023	2022	2021
Cost/Income ratio (%)	21.00	19.15	19.80	25.21	32.55
Net Interest Margin (%)	5.73	6.33	5.20	3.64	2.82
Profit Per Employee (BDT Mn.)	16.08	12.89	13.74	8.00	5.27
ROA (%)	4.01	3.46	4.36	2.77	1.73

Subsidiaries of the Group

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

Performance of the local subsidiaries

Commercial Development Company PLC (CDC)

CDC, established in 1980 as the Bank’s first subsidiary, serves as the Group’s dedicated property and facility management arm. The Bank holds a 90% equity stake in CDC. The Company owns “Commercial House,” the Bank’s Head Office building, along with properties in Negombo and Tangalle. Its revenue model, largely derived from the Bank, provides stable and predictable earnings supported by long-term property and facility management arrangements.

Key developments during 2025

During FY2025, CDC continued to strengthen its recurring revenue base through revised rental agreements and the expansion of utility and outsourcing services. These initiatives supported revenue growth and reinforced the Company’s role as a stable and strategic support entity within the Group.

The Company also maintained disciplined cost management and operational efficiency, ensuring continued stability in its core property and facility management operations despite fluctuations in fair value movements.

Performance during FY2025

Revenue for FY 2025 increased by 15.20% to Rs. 815.909 Mn., compared to Rs. 708.261 Mn. in FY2024. The growth was primarily driven by revised rental agreements and expanded service offerings.

Net Profit declined to Rs. 421.535 Mn., reflecting a year-on-year decrease of 27.65%. This reduction was mainly attributable to lower fair value gains on investment properties, which amounted to Rs. 146.222 Mn. in FY2025 compared to Rs. 479.340 Mn. in FY2024. Excluding fair value adjustments, underlying operational performance remained stable, supported by steady recurring income streams.

As at December 31, 2025, Net Asset Value per share increased by 8.06% to Rs. 371.27, compared to Rs. 343.58 as at December 31, 2024.

Over the past five years, CDC has demonstrated consistent earnings generation and steady growth in Net Asset Value, contributing stable dividend flows and long-term value to the Group.

Future plans

Looking ahead, CDC will continue to focus on maintaining stable recurring income through effective property management, optimised rental structures and efficient facility management services. The Company remains committed to enhancing operational efficiency and sustaining asset value growth, thereby ensuring continued contribution to the Group’s stability and long-term value creation.

ORYSYS Limited

(Formerly known as CBC Tech Solutions Limited)

ORYSYS Limited, a wholly owned subsidiary of Commercial Bank of Ceylon PLC, operates as a specialised Technology and Business Automation Partner primarily serving the Banking, Financial Services and Insurance (BFSI) sector. To strengthen the organisation’s future objectives, the company changed its name from “CBC Tech Solutions Limited” to “ORYSYS Limited,” a strategic move aimed at emphasising its evolving business focus and expanded technological capabilities. Moving forward, Commercial Bank of Ceylon PLC and its subsidiaries are the main focus for digital transformation, while the company continues extending technology solutions across a wider range of clients.

The core business areas of the Company include IT services, hardware sales and software licensing, hardware maintenance, software development and resource augmentation. Its strategic roadmap focuses on growth, digitalisation, customer experience and talent development, delivered through a dual engagement model of solution development and managed services, with particular emphasis on mid-sized financial institutions and enterprises.

Key developments during 2025

During the year, the Company aligned its operations with global technology shifts through focused Research & Development initiatives in emerging technologies and innovative software solutions.

Operational efficiency was strengthened through the automation of Tier 1 IT support tickets using AI and scripting, alongside the implementation of a unified dashboard for real-time performance monitoring.

Strategic partnerships were further reinforced, highlighted by the inaugural partner event with Nutanix and Lenovo in October 2025. Integration was deepened with partners including Nutanix, Lenovo, Huawei, HP, ManageEngine and CISCO, while new partnerships in IT security services were pursued.

The Company was recognised as the Nutanix “BFSI Partner of the Year” for 2025 and received the ManageEngine Silver Partner Certification. Talent development remained a priority, with targeted upskilling programs in AI and Data Science aimed at maintaining employee retention above industry benchmarks.

Performance during FY2025

The Company recorded total revenue of Rs. 1.731 Bn. in FY2025, representing a growth of 48.16% compared to Rs. 1.169 Bn. in FY2024. This increase was primarily driven by higher IT service income and increased hardware and software sales.

Profit before tax rose to Rs. 222.235 Mn., reflecting a growth of 117.65% over Rs. 102.105 Mn. in FY2024, supported by stronger sales performance and improved cost management. Profit after tax increased to Rs. 151.893 Mn., marking a 143.58% rise from Rs. 62.358 Mn. in FY2024. These results demonstrate enhanced operational performance and disciplined execution of the Company’s growth strategy.

Future plans

As part of its long-term growth strategy, the Company plans to expand its product portfolio into selected foreign markets, strengthening its international footprint. The ORYSYS Board is strengthened by directors possessing global experience and a strong regional presence. This diverse expertise enhances our governance standards and provides a vital perspective as the Company aims to expand beyond domestic operations.

Entering the 2026–2030 strategic period, the Company is positioned to drive sustained value creation through continued innovation and disciplined growth. The Company’s long-term strategic roadmap is anchored by a framework of robust governance and the operational scalability required to drive sustainable growth.

ORYSYS Limited hosting its inaugural partner event with Nutanix and Lenovo – October 2025

CBC Finance PLC (CBCF)

CBCF, a wholly owned subsidiary of Commercial Bank of Ceylon PLC, is a Licensed Finance Company regulated under the Finance Business Act No. 42 of 2011. Following its strategic rebranding from Serendib Finance Ltd, the Company has strengthened its market positioning while reinforcing governance standards and operational alignment with its parent company. Leveraging the strength, reputation and stability of the Commercial Bank Group, CBCF continues to enhance its institutional presence within Sri Lanka’s financial services sector.

Key developments during 2025

During 2025, CBCF undertook several strategic initiatives aimed at strengthening its capital base, expanding its market presence and enhancing organisational capability.

A key milestone during the year was the successful issuance and listing of Rs. 1.5 Bn. five-year listed, rated, unsecured, subordinated, redeemable, debentures in December 2025. The issuance was oversubscribed, reflecting strong investor confidence in the Company’s financial strength, governance standards and growth prospects. Rated “BBB+(lka)” by Fitch Ratings Lanka Limited and listed on the Colombo Stock Exchange, the debenture issue further strengthened the Company’s capital base and enhanced its capacity to support lending growth, particularly within the SME segment.

CBCF also expanded its physical footprint by commissioning four new branches in Tissamaharama, Kaduwela, Maharagama and Panadura. This expansion enhanced accessibility, reinforced market presence and supported business growth across strategically important regions.

In parallel, the Company continued to strengthen its corporate culture and internal capabilities. Focus was placed on promoting integrity, innovation and inclusivity, supported by structured training programs and leadership development initiatives. These efforts reinforced accountability, enhanced employee engagement and strengthened the Company’s human capital foundation.

Performance during FY2025

In 2025, Sri Lanka’s financial sector transitioned from a phase of recovery to sustained stability, supported by structural reforms and sovereign debt restructuring, as discussed in the section on Operating Environment and Outlook of this Report. Within this improving macroeconomic environment, CBCF delivered strong financial performance, reflecting disciplined portfolio expansion and effective cost management.

Gross income for FY2025 increased by 39.73% to Rs. 3.719 Bn. (FY2024: Rs. 2.661 Bn.). This growth was primarily driven by a 39.65% increase in interest income to Rs. 3.172 Bn. (FY2024: Rs. 2.271Bn.), reflecting the strategic expansion of the lending portfolio.

Managing the cost of funds remained a priority during the year, with interest expenses increasing by a controlled 22.29% to Rs. 1.711 Bn. in FY2025, compared to Rs. 1.399 Bn. in FY2024, amid portfolio expansion. As a result of disciplined funding management and strong lending growth, Net Interest Income increased significantly by 67.50% to Rs. 1.461 Bn. in FY2025, up from Rs. 872.079 Mn. recorded in FY2024.

Furthermore, a strategic emphasis on non-fund-based income resulted in a 66.23% increase in net fee and commission income, which rose to Rs. 447.597 Mn. in FY2025 from Rs. 269.266 Mn. in FY2024. Supported by strong growth in both interest and non-interest income streams, Total Operating Income increased by 60.71% year-on-year to Rs. 1.993 Bn., compared to Rs. 1.240 Bn. in FY2024.

Impairment charges for FY2025 increased by 29.59% to Rs. 306.950 Mn. (FY2024: Rs. 236.865 Mn.), reflecting a prudent and conservative approach to credit risk aligned with portfolio expansion. Despite the higher provisioning, Net Operating Income increased significantly by 68.06% to Rs. 1.686 Bn. in FY2025, compared to Rs. 1.003 Bn. in FY2024.

Total operating expenses increased by 51.27% to Rs. 1.124 Bn. in FY2025, compared to Rs. 742.811 Mn. in FY2024, primarily driven by business expansion and scaling initiatives. Despite the rise in operating costs, overall

profitability improved significantly, with Net Profit increasing by 189.20% to Rs. 235.818 Mn., compared to Rs. 81.541 Mn. in FY2024.

The Company’s balance sheet expanded significantly during the year. Total assets nearly doubled to Rs. 33.648 Bn. (FY2024: Rs. 16.861 Bn.), supported by a 93.07% increase in net loans and receivables to Rs. 25.958 Bn. (FY2024: Rs.13.445 Bn.)

On the funding side, deposits grew by 35.48% to Rs. 13.970 Bn. as at end-FY2025 from Rs. 10.311 Bn. as at end-FY2024, underscoring heightened public confidence and effective deposit mobilisation strategies. In addition, balances due to banks increased significantly to Rs. 12.016 Bn. (FY2024: Rs. 3.050 Bn.), representing a 293.93% growth, supporting the expansion of lending activities during the year. Furthermore, the successful issuance of listed debentures during FY2025 strengthened the Company’s medium-term funding profile, contributing Rs. 1.500 Bn. to the liability base as at end-FY2025 (FY2024: Nil).

Collectively, the growth in deposits, bank borrowings and debenture funding enhanced the Company’s funding diversification and supported the substantial expansion of its balance sheet during the year.

Future plans

Looking ahead, CBCF remains committed to sustained growth and institutional strengthening. Plans for 2026 include the establishment of a new Corporate Office in Colombo to enhance operational capacity and brand visibility.

The strategic relocation of three existing branches is also planned to further improve service standards and deliver a modernised customer experience.

Building on the strong momentum achieved in 2025, CBCF is well positioned to pursue disciplined balance sheet growth, strengthened capital management and long-term value creation.

Commercial Insurance Brokers (Pvt) Limited (CIBL)

CIBL is a fully owned subsidiary of Commercial Bank of Ceylon PLC. Established in 1987, CIBL is a licensed Insurance Broker specialising in both General and Life Insurance. During 2025, Commercial Bank of Ceylon PLC increased its shareholding from 60% to 100%, thereby acquiring full ownership of the Company and further strengthening strategic alignment within the Group.

With nearly four decades of industry experience, CIBL provides comprehensive insurance and risk advisory services to large corporates, high-net-worth individuals, SMEs and retail clients across Sri Lanka. The Company’s industry exposure spans key sectors including Manufacturing, Banking & Finance, Transportation, Trade, Construction, Export & Import, Agriculture, Health & Hospitality and Information Technology.

Key developments during 2025

During 2025, CIBL implemented several strategic initiatives to strengthen its market position and expand its operational reach.

A key milestone was the amalgamation of the Bank’s Bancassurance operations with CIBL, enabling closer integration within the Commercial Bank Group and supporting accelerated business growth.

The Company significantly expanded its branch network from 8 to 33 locations during the year, with a focused emphasis on strengthening General Insurance distribution. This expansion enhanced accessibility, broadened customer reach and improved service delivery across the country.

In addition, the corporate office was relocated to Synergy Hub, Colombo 03, aligning the Company’s operations with the Commercial Bank Group’s broader vision for growth, innovation and excellence.

Performance during FY2025

CIBL recorded strong financial performance during FY2025, reflecting the positive impact of expanded distribution capabilities and enhanced bancassurance integration.

Gross Premium increased by 69% to Rs. 3,100.7 Mn. in FY2025, compared to Rs. 1,834.5 Mn. in FY2024, demonstrating strengthened market penetration and improved business volumes.

Commission Income rose by 49.37% to Rs. 328.739 Mn. in FY2025, up from Rs. 220.080 Mn. in FY2024, reflecting enhanced revenue generation from core brokerage activities.

Profit Before Tax increased by 26.27% to Rs. 84.078 Mn. in FY2025, compared to Rs. 66.587 Mn. in FY2024, underscoring improved operational performance and sustained profitability.

Future plans

Looking ahead, CIBL intends to pursue aggressive growth by further expanding its branch network and strengthening diversified distribution channels. Emphasis will also be placed on digital transformation initiatives to enhance operational efficiency and customer experience.

Building on the strong momentum achieved in 2025 and strengthened Group integration following full ownership acquisition, CIBL remains well positioned to capitalise on emerging market opportunities while contributing to the Commercial Bank Group’s broader strategic objectives.

Performance of foreign subsidiaries

Commercial Bank of Maldives Private Limited (CBM)

CBM, established in 2016 in partnership with Tree Top Investments (TTI), continues to strengthen its presence in the Maldivian banking sector by leveraging strong local market expertise and the backing of the Commercial Bank Group. As at December 31, 2025, CBM operated two branches and six self-service terminals, including two offsite ATMs.

Key developments during 2025

During 2025, CBM undertook several strategic initiatives aimed at enhancing digital capability, expanding service reach and strengthening market engagement.

CBM successfully went live on the Favara Maldives Instant Payments System, enabling instant and secure MVR transfers across all banks in the Maldives. This milestone significantly strengthened the Bank’s digital payment infrastructure and customer convenience.

The Bank further enhanced foreign currency access through the introduction of its second USD ATM in Hulhumale’, improving service accessibility for customers requiring USD cash withdrawals.

CBM also strengthened market visibility and customer engagement through active participation in major national exhibitions, including the Maldives Living Expo, Maldives Business Expo, Vacation Expo and Maldives Expo. These platforms enabled the Bank to promote its home loan products, card offerings and full suite of banking solutions to both local and international audiences.

In recognition of its performance and service quality, CBM received international accolades at the World Economic Magazine Awards 2025, being named Fastest Growing Private Bank – Maldives 2025 and Best Customer Service Bank – Maldives 2025.

The progress of Commercial Bank of Maldives Private Limited operations in core banking areas over the past five years is given below:

Key performance indicators – Commercial Bank of Maldives Private Limited Table – 53

As at December 31,	2025 MVR Mn.	2024 MVR Mn.	2023 MVR Mn.	2022 MVR Mn.	2021 MVR Mn.	5-Year CAGR %
Total deposits	3,981	3,244	2,785	2,542	1,993	21.57
Gross advances	1,529	1,274	955	785	590	24.27
Total Assets	4,756	3,922	3,248	2,927	2,316	21.58
Profit before tax	121	87	102	75	44	30.47
Profit after tax	91	65	78	57	33	31.66

Key financial ratios – Commercial Bank of Maldives Private Limited Table – 54

Indicator	2025	2024	2023	2022	2021
Cost/Income ratio (%)	31.59	32.67	35.29	35.63	48.11
Net Interest Margin (%)	3.48	3.49	3.69	3.78	3.51
Profit Per Employee (MVR Mn.)	1.57	1.12	1.53	1.39	0.80
ROA (%)	2.10	1.81	2.53	2.17	1.61

In parallel with its financial performance, CBM continued its corporate social responsibility initiatives, including support for the Back-to-School 2025 campaign, providing essential school supplies to children from underprivileged families.

Future plans

Looking ahead, CBM remains committed to sustained technological advancement, service innovation and customer excellence. Strategic focus areas include enhancing digital capabilities, strengthening customer experience, promoting financial inclusion and supporting sustainable growth across the Maldivian economy.

Building on the strong momentum achieved in 2025, CBM is well positioned to deepen its market presence while creating long-term value for customers, stakeholders and the wider community of the Republic of Maldives.

CBC Myanmar Microfinance Company Ltd.

CBC Myanmar Microfinance Company Ltd., a wholly owned subsidiary of Commercial Bank of Ceylon PLC, commenced operations in July 2018 with its head office and first branch in Lewe Township, Nay Pyi Taw. Established with a mandate to promote financial inclusion, the Company provides responsible and accessible microfinance solutions to underserved rural and semi-urban communities across Myanmar.

Since inception, the Company has steadily expanded its outreach, supporting entrepreneurs, farmers and cottage industry operators through tailored financial products and advisory services, thereby contributing to sustainable livelihood development and grassroots economic stability.

Key developments during FY2025

During FY2025, CBC Myanmar expanded its operational footprint with the establishment of two new branches in the Mandalay region, increasing its presence to 13 townships across Nay Pyi Taw and Mandalay regions.

Operations were conducted in a challenging environment marked by political uncertainty, inflation, exchange rate volatility, regulatory changes and liquidity constraints. Rising operating costs, migration patterns and natural disaster risks added further pressure. In response, the Company reinforced portfolio quality through disciplined risk management, including close monitoring of delinquent accounts, proactive borrower engagement and flexible repayment arrangements.

The Company continued to strengthen its financial inclusion and sustainability initiatives. A Financial Literacy and Capacity Building Program benefited approximately 375 centre leaders and micro-entrepreneurs. A digital loan collection campaign increased digital collections by around 300%, improving efficiency and reducing paper usage, while two branches were converted to solar energy to support environmentally responsible operations.

Employee engagement was enhanced through the introduction of a performance-based salary scheme, revisions to compensation structures in line with rising living costs and expanded staff training. In addition, the Company diversified its funding base through new institutional partnerships, reducing reliance on the parent institution and strengthening operational independence.

Performance during FY2025

Despite structural challenges, CBC Myanmar delivered strong business growth in FY2025 compared to FY2024.

Loan disbursements increased by 86.00% to MMK 18.6 Bn., while the loan portfolio grew by 71.35% to MMK 11.707 Bn. The number of active borrowers increased by 32.83%, reflecting expanded outreach and sustained demand.

Enhanced portfolio management contributed to a 35.31% reduction in non-performing loans compared to 2024, while maintaining a strong recovery ratio of 99%. Revenue increased by 84.08% to MMK 2.802 Bn., and profitability improved to MMK 0.990 Bn., reflecting stronger loan recovery, optimised interest income and cost-efficient operations.

During FY2025, the Company successfully offset accumulated losses from prior periods and began building retained earnings, strengthening equity and overall financial resilience.

Future plans

Looking ahead to 2026, CBC Myanmar will focus on enhancing efficiency, expanding financial inclusion and strengthening sustainability. Key priorities include further digitalisation of loan collections, promotion of environmentally responsible practices and obtaining a deposit acceptance license to broaden services and improve liquidity.

The Company also plans to expand its agriculture loan product, increase branch presence in new townships and continue emphasising female lending to support women-led micro-enterprises. These initiatives are designed to deepen outreach, enhance service delivery and strengthen long-term institutional resilience.