People’s Bank records unprecedented bottom line and balance sheet growth

• Reports consolidated gross income of Rs. 236.8 b and consolidated pre-tax profit of Rs. 37.2 b
• Consolidated loan book reaches Rs. 1,990 b while consolidated deposit base exceeds Rs. 2,168.7 b
• Extends industry’s largest COVID-19 relief 
• Executes over Rs. 1 t in digital transactions during 2021 
• People’s Wave becomes industry’s most downloaded app

For the financial year 2021, People’s Bank reported a consolidated total operating income of Rs. 110.7 billion and total operating expenses amounting to Rs. 50.5 billion which represents an increase of 21.9% and 14.9% respectively over 2020. 

The bank’s consolidated pre-tax and post-tax profits amounted to Rs. 37.2 billion and Rs. 28.1 billion; representing a 51.1% and 74.6% growth. 

On a bank standalone basis, the bank’s PBT and PAT figures were Rs. 30.4 billion and Rs. 23.7 billion, respectively, up 43.2% and 67.3% over 2020. 

Income growth primarily stemmed from net interest income, which accounted for close to 90.0% of total operating income and grew by 30.2% in line with the bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4% to reach Rs. 9.0 billion; reflecting People’s Bank’s efforts to improve its non-funded income sources. 

Underscoring the bank’s operational efficiency bank’s cost-to-income ratio has shown a marked improvement at 51.1% in 2021 as compared with 54.3% in 2020 and 61.8% in 2019. 

In 2021 the bank’s consolidated loan book expanded by 12.1% to reach Rs. 1,990 billion while its consolidated deposit base grew by 12.1% to Rs. 2,168.7 billion. 

Total consolidated taxes and dividends to the Government totalled Rs. 20.4 billion during 2021, representing a 25.1% growth over Rs. 16.3 billion in 2020. 

Its Consolidated Tier I and Total Capital Adequacy was 13.4% and 17.9%, respectively at the end of 2021 (end 2020: 10.7% and 15.6%). 

On a bank standalone basis, these were 12.6% and 17.8%, respectively (2020: 9.5% and 15.5%). All other regulatory ratios were maintained well above the minimum requirement.

During the year, the bank invested in rural development, supported small and medium-sized enterprises (SMEs), and encouraged women entrepreneurship. 

At the end of 2021, it extended over Rs. 63.0 billion to SMEs through various loan initiatives; which included close to Rs. 1.9 billion through its scheme to help revive businesses across agriculture, information technology, logistics, manufacturing, tea, and tourism. 

In addition, People’s Bank in conjunction with the Small Holder Agri-Business Partnership (SAP), introduced a low-interest credit scheme for 5,000 farmers with an initial provision of Rs. 1.0 billion. To support the production of local fertiliser, the bank introduced the Sarabhoomi loan scheme whilst to promote women entrepreneurship, it extended Rs. 533.5 million. 

The bank also introduced additional loan schemes to assist self-employment in the agricultural and handicrafts spaces. 

From a Personal Loan perspective, in its effort to uplift the housing and construction sector, the bank granted over 10,000 home loan facilities amounting to over Rs. 185.8 billion at the end of 2021. In addition, by the end of 2021, it had disbursed over Rs. 5.5 billion to retired disabled officers of armed forces and over Rs. 68.5 billion to Government pensioners. 

To assist artists and related professionals, the bank disbursed over Rs. 550.0 million, whilst to assist university students and teachers, the bank designed laptop loan schemes through which a total of Rs. 350.5 million was extended throughout the year. Medical students at State universities were similarly offered personal loan facilities.