People’s Bank achieves Rs. 92.7 b in Group Gross Income in 1Q

• Achieves significant growth across most aspects of business operations
• Total consolidated assets, deposits, and net loans expanded to Rs. 3.3 t, Rs. 2.8 t and Rs. 1.8 t respectively as of 31 March
• Statutory Liquid Assets reached an institutional high of 39.2%
• Total Consolidated Capital Adequacy at 17.2% whilst on a solo basis 16.1%, well above requisite minimum of 13.5%
• Digital customer base grew to 2.7 m, largest for any financial services provider

People's Bank Chairman Sujeewa Rajapakse

CEO GM Clive Fonseka

People’s Bank yesterday announced a total consolidated operating income of Rs. 20.4 billion and post-tax profit of Rs. 2.5 billion for the first quarter of FY24. 

The Bank reported total consolidated operating income of Rs. 20.4 billion and post-tax profit of Rs. 2.5 billion. Excluding the impact of exceptional adjustments in view of greater prudence considering current macro-economic circumstances, these figures on a normalised basis were otherwise Rs. 28.4 billion and Rs. 6.6 billion, respectively, reflecting a growth of 18.2% and 35.8%, the Bank said in a statement. 

Consolidated net interest income rose to Rs. 16.1 billion during the quarter from Rs. 15.3 billion in the same period 2023. On a normalised basis, excluding the impact of any exceptional items, consolidated net interest margins improved to 3.0% from 2.0% during 2023 reflecting the reducing term deposit cost of funding. Consolidated net fees and commissions amount to Rs. 3.8 billion – representing a 14.7% growth on a like for like basis. Total consolidated operating expenses amounted to Rs. 17.6 billion (2023: Rs. 14.4 billion).

Total consolidated customers deposits touched Rs. 2,808.3 billion (end 2023: Rs. 2,745.2 billion) whilst net loans amounted to 1,845.4 billion (end 2023: Rs. 1,823.8 billion). The impaired loan ratio also showed improvement relative to end 2023. Total consolidated assets reached Rs. 3,264.5 billion at period end (end 2023: Rs. 3,208.2 billion). 

The Bank’s total Tier I and Total Capital Adequacy Ratios were 11.5% and 16.1%, respectively at 31 March 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.9% and 17.2%, respectively (end 2023: 13.7% and 18.2%). The Bank’s solvency levels continue to remain sound. Further efforts to bolster its regulatory capital, including for the purposes of additional contingency, is currently in process. 

Commenting on the results of the Bank and the Group, People’s Bank Chairman Sujeewa Rajapakse said: “We are pleased with the steadfast progress made by the Bank on many fronts even amidst interim pressures stemming from the yet ongoing – and likely to be soon concluded – debt restructuring initiatives of the Government of Sri Lanka. We reasonably expect that these pressures will normalise in the near term with the support of all key stakeholders. Notwithstanding, the Bank has yet again demonstrated its strength, resilience and capacity to deliver positive growth across all core operating metrics even amidst such limiting circumstances.” 

“Looking ahead, whilst navigating the challenges which naturally exists in a reviving macro-economic context - we remain focused on innovation, collaboration, and the drive for forward movement across all aspects of our business, ensuring that we continue to play our leading role in any and every way possible in the country economic revival. Needless to say, all our successes stem from the hard work, dedication, and commitment of our employees and the unwavering trust and confidence of our customers. I take this opportunity to thank them all as we look forward with a great sense of hope and optimism,” Rajapakse added.

Commenting on the results, the Bank’s CEO/General Manager Clive Fonseka said: “In the face of unforeseen challenges, our team has once again demonstrated its resilience, adaptability, and unwavering commitment. Our first quarter not only show cases our ability to grow amidst challenges but importantly, the strength and resilience of our business. By prioritising operational efficiency, enhancing customer experience, and investing in technology and talent, we have positioned ourselves for sustainable growth and long-term success. “ 

“Looking at the rest of the year, we will continue to focus on our strategic priorities whilst navigating the challenges which yet exists. Amongst others, we will also continue to innovate, collaborate, and drive for positive change at every instance so possible so to ensure we remain at the forefront of our industry. We look forward,” Fonseka added.