Business
People’s Bank reports consolidated profit after tax of LKR 4.6 billion
People’s Bank announced the results for its quarter ended March 31, 2023 reporting total consolidated operating income and pre-tax profit amounting to LKR 24.0 billion and LKR 7.2 billion, respectively (Q1-2022: LKR 42.6 billion and LKR 11.0 billion).
Similar to 2022, the quarter continued to be characterized by higher interest costs; due to the high interest rate environment which prevailed. This saw consolidated net interest income dip by 49.7% to LKR 15.3 billion during the period relative to Q1-22. This, in part, also reflected the Bank efforts to defer re-pricing of some of its loans to its more sensitive customer segments. Consolidated net fees & commission income amounted to LKR 4.5 billion which, excluding one off items during Q1-22, represented over a 40.0% growth on a like for like basis.
Reflecting inflation pushed cost pressures, much of which originated in the period after Q1-22, saw consolidated total operating expenses rise by 10.1% to reach LKR 14.4 billion (Q1-22: LKR 13.1 billion). This compared well with the industry and, in part, also reflected Group efforts for greater cost control at every instance so reasonably possible.
Total consolidated customers deposits grew to reach LKR 2,513.1 billion – i.e., by 2.6%, whilst consolidated net loans contracted by 4.2% to LKR 1,835.1 billion. The dip in net loans reflected a conscious effort on part of the Bank and the Group to control lending more so in a yet contracting macro-economic context. Total consolidated assets stood at LKR 3,072.2 billion at period end (end 2022: LKR 3,133.1 billion).
The Bank’s Tier I and Total Capital Adequacy Ratios were 11.8% and 16.2%, respectively at March 31, 2023 (end 2022: 11.9% and 16.3%) whilst, on a consolidated basis, it was 13.0% and 16.9%, respectively (end 2022: 13.3% and 17.2%). The Bank’s solvency levels remain sound ultimately reflecting efforts made since the onset of Basel III on July 1, 2017. Further efforts to bolster its regulatory capital, including for the purposes of additional contingency, is currently ongoing. In addition, the Bank successfully met all key regulatory measures during the said period.
Commenting on the results of the Bank and the Group, the Chairman of People’s Bank, Mr. Sujeewa Rajapakse, stated that: “Whilst the sector has, and continues to reel with many headwinds over the last several years. our first quarter results remains testimony to our continued strength and resilience, and adaptability even in the most adverse set of circumstances. Over the last several years, the Bank has successfully met the needs of its diverse stakeholders, leading from the front in many instances so to ensure the country is first prioritized, customer interest are safeguarded, government endeavors are supported whilst, at the same time, the Bank’s commercial interests are also met. Our top line growth during the quarter attest to the growth of our core banking operations whilst the high interest rate environment which prevailed has naturally led to the inevitable earnings pressure as seen throughout the industry. The quarter was however witness to several accomplishments from an Institutional standpoint both from a quantitative and qualitative front. This included, amongst other, our ability to successfully drive identified strategic growth areas, ensure sustained improvements in liquidity both from a rupee and foreign currency standpoint and instill further improvements from a risk management perspective. In addition, our digital investments continues to bear fruit, which augurs well for the Bank’s future growth prospects!
Looking ahead, with several positive developments seen on a macro-economic front including those stemming from the IMF’s Extended Fund Facility, we look forward to the future with a great degree of optimism. As we have done so over the last several years, we reaffirm our unwavering commitment to play our role to safeguard national interest and those of our stakeholders. I take the opportunity to thank our loyal customers for their continued trust and confidence in the Institution!”
Commenting on the results, the Bank’s Chief Executive Officer/ General Manager (Acting) Mr. Clive Fonseka, stated that: “Despite the many pressures, including those unique to a State-Owned Institution, we have continued to make noteworthy progress on several fronts and have addressed some of the most pressing matters within a short span of time. Our primary focus has, and continues to be, in further bolstering our liquidity, driving key areas of strategic importance, and managing our asset quality whilst supporting our customers navigate through these challenging times. We are currently also taking early steps to bolster our regulatory capital from current levels. The success of our delivery remains ultimately best reflected in the sustained improvements shown across several key performance indicators.
Relating to the recent news being circulated in select social media platforms on non-performing loan write-offs – I seek to confirm that there have been no such write offs. Our usual due process for recovering such loans are currently in process.
He further stated that: “The foundation of People’s Bank’s success primarily rests with our staff and that of our loyal customers. While the road ahead is likely to be filled with many more challenges, we look forward to facing them with confidence and vigor as we have done so over the last several years!
Janashakthi Life, one of the fastest growing Life insurers in Sri Lanka has recorded a massive LKR 5.7 Billion Profit Before Tax for the period under review. This is the second consecutive year the company has surpassed the LKR 5 billion mark in PBT.
Reflecting on the company’s achievements, Ravi Liyanage, Director / CEO of Janashakthi Insurance PLC, said, “Our strong financial performance in 2024 is a testament to our strategic focus, operational excellence, and steadfast commitment to serving our policyholders. Despite market uncertainties, we have continued to grow, delivering exceptional value to our policyholders and all the stakeholders. Our exponential growth trajectory was double the size of the industry growth to reach 44% in revenue growth surpassing over LKR 6.6 Billion premium income whilst not compromising the value creation to our investors and shareholders recording over LKR 5.7 Billion PBT.
“Looking ahead, the company is well-poised to maintain its momentum as the fastest-growing insurance provider in 2025. The company has already deployed well focused strategies for market and distribution expansion in keeping with product / market as a matrix for growth. Some of the innovative products are being developed for emerging segments of the life insurance market in 2025. Further, plans are already in place to deliver best-in-class service through focused customer lifecycle management. The company is also executing robust digitalization initiatives to strengthen its position as a pioneer in digital innovation. Janashakthi Life’s total assets amount to LKR 38 billion at the close of 2024, reflecting robust growth. This underscores the financial strength and stability of the company, ensuring long-term security and sustainability for its stakeholders. Further, A key financial indicator, the Capital Adequacy Ratio of over 277%, highlights the company’s prudent financial management and reinforces confidence among all stakeholders”, added Liyanage.
Annika Senanayake, Chairperson of Janashakthi Insurance PLC, commented on the performance, “At Janashakthi Life, our resolute focus is on creating sustainable value for all stakeholders. Our performance in 2024 reflects not only our financial strength but also our deep commitment to supporting our policyholders when it matters most. The significant increase in claims paid denotes our dedication to being a reliable partner in our customers’ lives, providing them with financial security and peace of mind. As we look to the future, we are committed to invest in our human resource, technology, and product innovation to continue delivering customer-centric solutions, strengthening our market position, and driving long-term growth in Sri Lanka’s life insurance sector”.
“In 2024, we provided over LKR 4.2 billion in benefits to our policyholders through claims and maturities. The company’s prudent financial management and planning paved the way during this period to stay strong and tall irrespective of economic challenges”, Senanayake added.
The year under review saw many outstanding achievements in the company’s operations, including the highest growth in lives protected, new business premium growth of over 63%, which reflects the success of our business acquisition efforts. Additionally, we received numerous industry recognitions, such as Asia’s Best Insurance Company for Innovations at the Fifth Asia’s Best and Emerging Insurance Company Awards, the International Finance Awards, the Business Pinnacle Awards, the Business Tabloid Awards, the Global Banking Finance Awards 2024, the SLITAD People Development Awards, and the TAGS Awards, all of which highlight our commitment to employee development and industry leadership, to name just a few.
Founded in 1994 as a Life Insurance company, Janashakthi Insurance PLC (Janashakthi Life) made its mark in the industry as an innovator and household name over a span of over 30 years. Janashakthi Life has a strong presence across the island, with an expanding network of over 75 branches and a dedicated call centre that covers every corner of Sri Lanka. In line with its purpose of ‘Uplifting Lives and Empowering Dreams’, Janashakthi Life remains committed to becoming a leader in the Life Insurance industry by delivering a service beyond Insurance to its customers and stakeholders. Janashakthi Insurance PLC is a member of the JXG (Janashakthi Group), Sri Lanka’s emerging financial conglomerate that operates in the Insurance, Finance, and Investment sectors.
CSE trading was of a negative orientation and a low turnover level was recorded yesterday. A drop in the price of HNB shares contributed to this development in considerable measure.
HNB’s initial share price was Rs 314.75 but subsequently it dropped to Rs 305. HNB thus contributed 24 negative points to both indices.
The All Share Price Index went down by 67 points, while the S and P SL20 declined by 19.4 points. Turnover stood at Rs 1.66 billion with six crossings.
Those crossings were reported in Lankem Ceylon where 1 million shares crossed to the tune of Rs 85 million; its shares traded at Rs 85, Commercial Bank 500,000 shares crossed to the tune of Rs 74 million; its shares sold at Rs 148, Richard Peiris 2.6 million shares crossed for Rs 68.9 million; its shares traded at Rs 26, Agarapathana Plantations 4 million shares crossed to the tune of Rs 52.4 million; its shares traded at Rs 13.10, Hemas Holdings 200,000 shares crossed for Rs 24 million; its shares traded at Rs 120 and JKH 1 million shares crossed to the tune of Rs 20.3 million; its shares traded at Rs 20.3.
In the retail market top six companies that mainly contributed to the turnover were; Sampath Bank Rs 183 million (1.5 million shares traded), JKH Rs 172 million (8.5 million shares traded), Commercial Bank Rs 138 million (931,000 shares traded), HNB Rs 122 million (403,000 shares traded), TJ Lanka Rs 57.4 million (1.1 million shares traded) and Commercial Credit Rs 33.3 million (593,000 shares traded). During the day 52.9 million share volumes changed hands in 11112 transactions.
It is said that the banking sector counter was the main contributor to the turnover followed by the manufacturing sector, especially JKH. The plantations sector counters were also a bit active especially with Agarapathana Plantations featuring.
The rupee was quoted at Rs 296.30/40 to the US dollar in the spot market, stronger from 296.35/45 on the previous day, dealers said, while bond yields were up steeply.
A bond maturing on 15.09.2027 was quoted at 9.55/65 percent, up from 9.47/50 percent. A bond maturing on 15.03.2028 was quoted at 9.97/10.05 percent. A bond maturing on 15.12.2028 was quoted at 10.20/30 percent. A bond maturing on 15.09.2029 was quoted at 10.35/45 percent, up from 10.30/35 percent. A bond maturing on 15.12.2032 was quoted at 10.75/85 percent, down from 10.75/90 percent.
The Central Bank was quoting a rate of Rs 292.0669 for buying and Rs 300.5806 for selling for US dollar telegraphic transfers; a rate of Rs 313.3986 for buying and Rs 326.1557 for selling for Euro; Rs 376.5107 buying and Rs 390.7131 selling for the British pound and Rs 1.9269 buying and Rs 2.0037 selling for the Japanese yen.
By Hiran H.Senewiratne
Business
British Council Sri Lanka marks Commonwealth Day by hosting latest cohort of returning Commonwealth and Chevening Scholars from Sri Lanka
The British Council in Sri Lanka hosted its annual networking event to welcome home the latest batch of Sri Lanka’s Commonwealth and Chevening Scholars returning from the UK on completion of their studies.
This year’s event, organized together with the British High Commission Colombo, was also the 65th anniversary of the Commonwealth Scholarships, and took place on Commonwealth Day—the first-ever “Welcome Home” event that celebrated both Commonwealth and Chevening Scholars. The scholarships enable outstanding emerging leaders from all over the world to pursue advance studies in the UK.
HE Andrew Patrick, British High Commissioner, Orlando Edwards, Country Director of British Council Sri Lanka, and Philip Everest, Policy Lead from the Foreign, Commonwealth & Development (FCDO) Commonwealth & Marshall Scholarship Unit, together with Commonwealth and Chevening Scholarship alumni attended.
Commonwealth Day was celebrated across 56 Commonwealth member countries on 10March under this year’s theme ‘Together We Thrive’, demonstrating how working together can build a future defined by opportunity and resilience. During his Commonwealth Day Message, His Majesty The King, Head of the Commonwealth stated, “The Commonwealth’s ability to bring together people from all over the world has stood the test of time and remains as ever-important today.
Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Southern, and Uva provinces and in Nuwara-Eliya district after 2.00 p.m.
Gnanasara Thera urged to reveal masterminds behind Easter Sunday terror attacks
IMF asks SL to maintain reform momentum to stabilise economy
-
News7 days agoSeniors welcome three percent increase in deposit rates
-
Features7 days agoThe US, Israel, Palestine, and Mahmoud Khalil
-
News7 days agoScholarships for children of estate workers now open
-
Foreign News5 days agoBuddhism’s holiest site erupts in protests over Hindu ‘control’ of shrine
-
News7 days agoJapanese Defence Delegation visits Pathfinder
-
Features4 days agoCelebrating 25 Years of Excellence: The Silver Jubilee of SLIIT – PART I
-
Editorial6 days agoWhen tractors become cars!
-
Business2 days agoAIA Higher Education Scholarships Programme celebrating 30-year journey