People’s Bank achieves LKR 92.7 billion in Consolidated Gross Income in Q1-2024

The People’s Bank reported total consolidated operating income of LKR 20.4 billion and post-tax profit of LKR 2.5 billion, for Q1-2024. Excluding the impact of exceptional adjustments in view of greater prudence considering current macro-economic circumstances, these figures on a normalized basis were otherwise LKR 28.4 billion and LKR 6.6 billion, respectively, reflecting a growth of 18.2% and 35.8%, People’s Bank press release said.

The release added: ‘Consolidated net interest income rose to LKR 16.1 billion during the quarter from LKR 15.3 billion in the same period 2023. On a normalized basis, excluding the impact of any exceptional items, consolidated net interest margins improved to 3.0% from 2.0% during 2023 reflecting the reducing term deposit cost of funding. Consolidated net fees & commissions amount to LKR 3.8 billion – representing a 14.7% growth on a like for like basis. Total consolidated operating expenses amounted to LKR 17.6 billion (2023: LKR 14.4 billion).

‘Total consolidated customers deposits touched LKR 2,808.3 billion (end 2023: LKR 2,745.2 billion) whilst net loans amounted to 1,845.4 billion (end 2023: LKR 1,823.8 billion). The impaired loan ratio also showed improvement relative to end 2023. Total consolidated assets reached LKR 3,264.5 billion at period end (end 2023: LKR 3,208.2 billion).

‘The Bank’s total Tier I and Total Capital Adequacy Ratios were 11.5% and 16.1%, respectively at March 31, 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.9% and 17.2%, respectively (end 2023: 13.7% and 18.2%). 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, stated that: “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 normalize 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 economic revival”

‘Commenting on the results, the Bank’s Chief Executive Officer/ General Manager Clive Fonseka, stated that: 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.’