People’s Bank rated AA by Lanka Rating Agency

Chairman Sujeewa Rajapakse (left) and CEO/GM Clive Fonseka

People’s Bank has been assigned a prestigious AA rating by Lanka Rating Agency (LRA), reaffirming its status as the leading financial institution in Sri Lanka. 

This rating reflects the bank’s solid financial foundation, strong capitalisation, and prudent management, all of which contribute to maintaining the trust of its customers, stakeholders, and the public. 

Achievement of this rating amidst a challenging economic environment serves as a testament to People’s Bank’s unwavering commitment to excellence and stability.

People’s Bank’s AA rating is driven by its significant market share in the banking sector, representing over 14% of the industry’s total assets and over 17% of the sector’s total advances. As a Domestic Systemically Important Bank (DSIB), People’s Bank plays a critical role in the country’s financial system, with a clear commitment to providing secure and reliable banking services to individuals, businesses, and Government institutions.

The bank’s strong liquidity profile, with a notable improvement in the liquidity coverage ratio (LCR) to 257% at the end of March 2024, reflects its resilience in challenging market conditions. Moreover, People’s Bank’s proactive approach to managing exposure to exchange rate risks, maintaining a well-diversified loan portfolio, and focusing on Government securities further enhances its financial robustness.

People’s Bank Chairman Sujeewa Rajapakse said:“We are incredibly proud to receive this AA rating from LRA, which highlights People’s Bank’s position as one of the most trusted financial institutions in Sri Lanka. Our majority Government ownership, coupled with our prudent risk management practices, enables us to continue delivering financial security and peace of mind to our customers. We remain committed to strengthening our capital base and enhancing the Bank’s long-term financial sustainability.”

People’s Bank CEO/GM Clive Fonseka said: “This AA rating is a reflection of the dedication and hard work of our team, as well as our strategic focus on improving the financial health of the bank. We have consistently maintained a solid liquidity profile and diversified deposit base, allowing us to weather economic challenges while continuing to offer reliable and innovative banking solutions to our customers. Our focus remains on growing our customer relationships while ensuring the safety and stability of the bank.”

People’s Bank Head of Finance Azzam A. Ahamat said: “The AA rating by LRA ultimately attests to the bank’ the financial strength and its innate ability to successfully deal with multiple challenges head-on whilst effectively managing its enterprise risks. All matters and circumstances considered, we remained focused on expanding our balance sheet in a measured manner whilst ensuring to continuously maintain strong liquidity and capital buffers which are both core to our strength and stability. We believe that our focus on ensuring continuous improvements across all our core operating and financial metrics will ensure the Institution’s long-term all round success”

People’s Bank is committed to enhancing its profitability and asset quality while continuing to focus on responsible lending practices. The bank’s ability to sustain its financial position and adapt to changing economic conditions will be crucial in maintaining its strong credit profile. As a leader in Sri Lanka’s financial sector, People’s Bank remains dedicated to delivering value to its customers, shareholders, and the nation.