31 August 2024 01:40 am Views - 90
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Sujeewa Rajapakse
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Clive Fonseka
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People’s Bank, Sri Lanka’s leading financial services provider, yesterday announced its financial results for the first half ended June 30, 2024. The bank reported a total consolidated operating income of Rs.44.6 billion and a post-tax profit of Rs.3.2 billion.
Excluding the impact of exceptional adjustments in view of greater prudence considering the current macroeconomic circumstances, these figures on a normalised basis were otherwise Rs.62.6 billion and Rs.12.7 billion, respectively, reflecting a growth of 29.9 percent and 104.2 percent. The consolidated net interest income rose to Rs.35.0 billion during the 1H, from Rs.31.4 billion in the same period in 2023. On a normalised basis, excluding the impact of any exceptional items, the consolidated net interest margins improved to 3.2 percent, from 2.1 percent during 2024, reflecting the reducing term deposit cost of funding. The consolidated net fees and commissions amount to Rs.7.4 billion, representing a 19.3 percent growth on a like-for-like basis. The total consolidated operating expenses amounted to Rs.34.6 billion (2023: Rs.30.2 billion).
Total consolidated customer deposits touched Rs.2,885.6 billion (end-2023: Rs.2,745.2 billion) whilst net loans amounted to Rs.1,866.8 billion (end-2023: Rs.1,823.8 billion). The impaired loan ratio also showed improvement relative to end-2023. Total consolidated assets reached Rs.3,364.1 billion at the period end (end-2023: Rs.3,208.2 billion).
The bank’s total Tier 1 and total capital adequacy ratios were 11.5 percent and 15.9 percent, respectively at June 30, 2024 (end-2023: 12.4 percent and 17.4 percent) whilst on a consolidated basis, it was 12.8 percent and 16.8 percent, respectively (end-2023: 13.7 percent and 18.2 percent). 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 group, People’s Bank Chairman Sujeewa Rajapakse stated, “We are very pleased with the bank’s steadfast progress across various dimensions, notwithstanding the interim pressures associated with the yet to be concluded debt restructuring initiatives of the government of Sri Lanka. We remain optimistic that these pressures will and should abate in the near term, with the support of all key stakeholders. Despite these constraints, the bank has once again showcased its exceptional strength, resilience and further improving capacity for growth across all core aspects of its operational metrics.
As we anticipate and navigate the complexities which yet exist in a recovering macroeconomic landscape, our focus remains on fostering innovation, enhancing collaboration and driving advancement across every facet of our business. We, as always, continue to play our leading role in the country’s economic revitalisation. Our continued success is a direct reflection of the diligence, hard work, dedication and commitment of all our employees as well as the unwavering trust and confidence of our customers. On behalf of the Board of Directors, I take the opportunity to extend my deepest gratitude to all stakeholders as we look forward to the future with greater hope and optimism.”
Commenting on the results, the bank’s Chief Executive Officer/General Manager Clive Fonseka stated, “Amidst unforeseen challenges, our team has yet again exemplified its resilience, adaptability and steadfast commitment. The results from the first half of the year not only illustrate our ability to advance but also do so despite the many difficulties.
By emphasising operational efficiency, elevating the customer experience and strategically investing in technology and talent, we have adeptly positioned ourselves for sustainable growth over the longer term.
As we proceed through the remainder of the year, our focus remains sharply aligned with our strategic priorities while navigating the yet prevailing challenges. We remain committed to fostering innovation, cultivating collaboration and driving transformative change at every juncture, ensuring that we maintain our leadership position within the industry.
We eagerly anticipate progressing with these objectives, propelled by renewed vigour and purpose.”