People’s Bank kicks off year with Rs. 92.7 bn 1Q consolidated gross income

• Operational Growth: Significant growth across most aspects of business operations
• Balance Sheet Expansion: Total consolidated assets, deposits, and net loans expanded to Rs. 3.3 trillion, Rs. 2.8 trillion, and Rs. 1.8 trillion, respectively, as of March 31, 2024
• Record Liquidity: Statutory Liquid Assets reached an institutional high of 39.2 percent
• Strong Capital Adequacy: Total Consolidated Capital Adequacy at 17.2 percent whilst on a solo basis 16.1 percent. Well above the requisite minimum of 13.5 percent
• Digital Leadership: Digital customer base grew to 2.7 million, the largest for any financial services provider in the country

People’s Bank announced its financial results for the first quarter ended March 31, 2024. The bank reported total consolidated operating income of Rs. 20.4 billion and post-tax profit of Rs. 2.5 billion. 

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 percent from 2.0 percent during 2023 reflecting the reducing term deposit cost of funding. 
Consolidated net fees & commissions amount to Rs. 3.8 billion - representing a 14.7 percent 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 Rs. 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 percent and 16.1 percent, respectively at March 31, 2024 (end 2023: 12.4 percent and 17.4 percent) whilst, on a consolidated basis, it was 12.9 percent and 17.2 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 the Group, the Chairman of People’s Bank, 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’s economic revival” 

Commenting on the results, the bank’s Chief Executive Officer/ 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 exist. 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.”