People’s Bank expands balance sheet by close to Rs.350bn during first nine months

• Extends unparallel support to government 
• Reports industry’s second highest comprehensive income of Rs.15.3bn on standalone basis and Rs.18.9bn on  consolidated basis
• Introduces multiple loan schemes at highly concessionary rates to support Saubhagya initiatives
• Total asset and net loan book growth during pandemic-affected 21-month period ended Sept. 30, 2021 at Rs.706.5bn and Rs.492.8bn, respectively 

People’s Bank yesterday announced the results for its nine-month period ended on September 30, 2021, reporting an asset and a deposit growth of Rs.349.7 billion and Rs.276.6 billion, respectively, a record high growing by 15.7 percent and 15.1 percent during the said period. 

Growth in net loans and investment in treasury securities was Rs.167.4 billion and Rs.191.4 billion, respectively. 
On a standalone basis, the bank accounted for close to 20.0 percent of the banking sector’s asset and net loan growth during the 21-month period ended on September 30, 2021, which is a feat self-attesting to the contribution made by the institution to the national cause and government. At September 30, 2021, close to 50.0 percent of the bank’s gross loans were to the state and other state-owned enterprises (SOEs). 

During the said 21-month period ended on September 30, 2021, the bank introduced multiple loan schemes in view of supporting its customers. These included, amongst other, over Rs.60.0 billion in credit to support small and medium-scale enterprises, over Rs.160.1 billion in home loans to over 9,000 customers, over Rs.6.0 billion to retired and disabled officers of armed forces and over Rs.560.0 million to artists of varying disciplines. 

In addition, the bank extended Rs.750.0 million to support the development of a techno park in Galle, over Rs.485.0 million to support women entrepreneurship and over Rs.260.0 million to university students to purchase laptops. 

Looking at some of the nine-month 2021 highlights, the net interest income rose by 38.9 percent whilst the total operating income grew by close to 30.0 percent. Impairment charges rose by 10.7 percent, non-personnel operating expenses were maintained at near Rs.11.6 billion, without any increase. The bank’s gross stage three loans as a function of  total gross loans was close to 8.1 percent at September 30, 2021, whilst its gross non-performing loans, excluding SOEs was 6.1 percent. Total taxes and dividends to the government during the said period were Rs.9.7 billion. The bank’s Tier I and total capital adequacy were 10.2 percent and 15.5 percent, respectively at end-September 2021, compared with a minimum 8.5 percent and 12.5 percent.

Commenting on the results, People’s Bank Chairman Sujeewa Rajapakse stated, “We are pleased with the role and contribution of the institution more so during a time of extraordinary challenge, change and need. We remain of service to the country in a time it needs us the most and are committed to the government’s long-term Vistas of Prosperity and Splendour initiatives. We measure our success not by a typical top or bottom line but by our contribution to safeguard the pandemic-stricken economy and our role to assist in its revival. It also demonstrates our efficiency and productivity even during the most challenging circumstances, thereby debunking any myth to the contrary. Above all said, with our job being far from over, we remain committed to continuing to play our part to help the country navigate through these unchartered waters.” 

People’s Bank Chief Executive Officer/General Manager Ranjith Kodituwakku stated, “2021 is a year unlike any seen. The year-to-date period has put to test our continued commitment, our continued access, our digital capabilities, our customer centricity and our ultimate ability to rise to our national duty. Notwithstanding the many challenges, including those beyond our reasonable control as seen in recent past, our delivery remains testimony to our strength, resilience and collective capability. Fully aware of the many challenges, which lie ahead, we look forward to the future with a great degree of hope and optimism.”