People’s Bank yesterday announced its financial results for the first half ended June 30, 2024. The Bank reported total consolidated operating income of LKR 44.6 billion and post-tax profit of LKR 3.2 billion. 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 62.6 billion and LKR 12.7 billion, respectively, reflecting a growth of 29.9% and 104.2%.

Consolidated net interest income rose to LKR 35.0 billion during the 1H from LKR 31.4 billion in the same period 2023. On a normalized basis, excluding the impact of any exceptional items, consolidated net interest margins improved to 3.2% from 2.1% during 2024 reflecting the reducing term deposit cost of funding. Consolidated net fees & commissions amount to LKR 7.4 billion – representing a 19.3% growth on a like for like basis. Total consolidated operating expenses amounted to LKR 34.6 billion (2023: LKR 30.2 billion).

Total consolidated customers deposits touched LKR 2,885.6 billion (end 2023: LKR 2,745.2 billion) whilst net loans amounted to 1,866.8 billion (end 2023: LKR 1,823.8 billion). The impaired loan ratio also showed improvement relative to end 2023. Total consolidated assets reached LKR 3,364.1 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 15.9%, respectively at June 30, 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.8% and 16.8%, 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 very pleased with the Bank’s steadfast progress across various dimensions, notwithstanding the yet 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 revitalization.

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 that: 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 emphasizing 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 vigor and purpose!