Monday Apr 07, 2025
Monday Apr 07, 2025
Wednesday, 5 March 2025 00:34 - - {{hitsCtrl.values.hits}}
Chairman Prof. Narada Fernando (left) and Chief Executive Officer Clive Fonseka
People’s Bank, yesterday announced its financial results for the year ended 31 December, 2024 reporting total consolidated operating income of Rs. 145.1 billion and post-tax profit of Rs. 28.8 billion, reflecting a growth of 49.9% and 152.7%, respectively. This included the benefit stemming from ISB restructuring which was fairly modest relative to peers.
Consolidated net interest income rose to Rs. 122.9 billion during the year from Rs. 67.8 billion in the same period 2023 – reflecting timely pricing of assets and liabilities in line with changing market interest rates. As a result, consolidated net interest margins improved to 3.7% in 2024 from 2.1% in 2023. Consolidated net fees and commissions amounted to Rs. 15.3 billion for the year – representing a growth of 10.5% - also a group all-time high. Total consolidated operating expenses amounted to Rs. 75.7 billion (2023: Rs. 62.2 billion).
Total consolidated customers deposits reached Rs. 2,947.9 billion (end 2023: Rs. 2,745.2 billion) whilst net loans were Rs. 1,665.0 billion (end 2023: Rs. 1,823.8 billion); being after the settlement of Rs. 262.6 billion in loans granted to a sovereign backed state enterprise by way of treasury bonds. Excluding the said settlement, net loan growth was close to 5.7%. Total consolidated assets reached Rs. 3,471.7 billion at end 2024 (end 2023: Rs. 3,208.2 billion).
The Bank’s total Tier I and Total Capital Adequacy Ratios were 10.9% and 16.5%, respectively at 31 December, 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.6% and 17.7% (end 2023: 13.7% and 18.2%). To save any doubt, these were after taking into account all prudential deductions; including those specifically relating to the sovereign backed State-owned enterprise restructure which was taken in full all things prudent considered. In addition, the Bank’s solvency levels were augmented by the Rs. 13.5 billion Basel III compliant Tier II debt issuance as undertaken during Q4-2024.
People’s Bank Chairman Prof. Narada Fernando said: “In 2024, the Bank made significant strides in several key areas, overcoming numerous challenges, particularly those stemming from the country’s prolonged macroeconomic difficulties. With many of the institution’s internal challenges now addressed, we look toward the future with optimism and a renewed sense of purpose. Our primary goal remains to support the Government’s efforts in strengthening the national economy, while maintaining consistent profitability as an independent institution.”
“As we continue to navigate the complexities of a recovering macroeconomic environment, we remain committed to intensifying our efforts in several core areas. Foremost, on driving innovation across all aspects of our business, ensuring that we stay ahead of the curve in delivering cutting-edge financial solutions. Two, to strengthen collaboration, both within the organisation and with external partners and thereby creating a more cohesive and agile approach to problem solving. Three, to further promote financial inclusion so that all segments of society have the opportunity to participate in, and benefit from, the broader economy,” he said.
“Ultimately, our vision is to be the leading force in the banking and financial services sector, setting the benchmark for excellence in customer service, innovation, and contributions to national economic development. I would like to take this opportunity to express my sincere gratitude to our shareholders, including the co-operative societies, customers, employees, and all stakeholders for their unwavering support and trust. I extend my special appreciation to the Ministry of Finance and other officials for their support and cooperation extended on many fronts. Together, we have not only overcome challenges but have also built a foundation for long-term resilience and sustainable growth,” the Chairman added.
The Bank’s CEO/General Manager Clive Fonseka said: “Amidst unforeseen challenges, our team has once again exemplified extraordinary resilience, adaptability, and an unwavering commitment to excellence. The results we’ve achieved are not only the highest in the institution’s history but also a testament to our ability to make meaningful progress despite the many obstacles we’ve encountered along the way.”
“By focusing on enhancing operational efficiency, elevating our customer experience, and making strategic investments in both technology and talent, we have laid the groundwork for sustainable, long-term growth. These efforts have strengthened our foundation, enabling us to swiftly adapt to evolving market conditions, refine our services, and continue delivering exceptional value to our customers and stakeholders,” he said.
“As we look to 2025 and beyond, we remain resolutely focused on our strategic priorities. While challenges are inevitable, particularly in a recovering macroeconomic environment, we are confident in our ability to navigate them with resilience and precision. By harnessing the full potential of our collective strengths and expertise, we are well-positioned to turn challenges into opportunities.
With renewed energy and a clear, shared sense of purpose, we are excited for the future ahead. We remain steadfast in our belief that our ongoing efforts will drive us to even greater heights, securing our position as industry leaders and creating a lasting, positive impact for years to come,” Fonseka added.
