People’s Bank records Rs. 400 billion consolidated gross income
The Morning: People’s Bank announced its financial results for the year ended 31 December 2024, reporting total consolidated operating income of Rs. 145.1 billion and post-tax profit of Rs. 28.8 billion, reflecting a growth of 49.9% and 152.7%, respectively.
This included the benefit stemming from ISB restructuring which was fairly modest relative to peers.
Consolidated net interest income rose to Rs. 122.9 billion during the year from Rs. 67.8 billion in the same period 2023 – reflecting timely pricing of assets and liabilities in line with changing market interest rates.
As a result, consolidated net interest margins improved to 3.7% in 2024 from 2.1% in 2023. Consolidated net fees and commissions amounted to Rs. 15.3 billion for the year – representing a growth of 10.5% – also a group all-time high.
Total consolidated operating expenses amounted to Rs. 75.7 billion (2023: Rs. 62.2 billion).
Total consolidated customers deposits reached Rs. 2,947.9 billion (end 2023: Rs. 2,745.2 billion) whilst net loans were Rs. 1,665 billion (end 2023: Rs. 1,823.8 billion); being after the settlement of Rs. 262.6 billion in loans granted to a sovereign backed state enterprise by way of treasury bonds.
Excluding the said settlement, net loan growth was close to 5.7%. Total consolidated assets reached Rs. 3,471.7 billion at end 2024 (end 2023: Rs. 3,208.2 billion).
The bank’s total tier I and total capital adequacy ratios were 10.9% and 16.5%, respectively at 31 December 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.6% and 17.7% (end 2023: 13.7% and 18.2%).
In addition, the bank’s solvency levels were augmented by the Rs. 13.5 billion Basel III compliant tier II debt issuance as undertaken during Q4-2024.
People’s Bank Chairperson Prof. Narada Fernando said: “In 2024, the bank made significant strides in several key areas, overcoming numerous challenges, particularly those stemming from the country’s prolonged macroeconomic difficulties. With many of the institution’s internal challenges now addressed, we look toward the future with optimism and a renewed sense of purpose. Our primary goal remains to support the government’s efforts in strengthening the national economy, while maintaining consistent profitability as an independent institution.”
Fernando said that the bank will focus on three key priorities: Innovating to deliver cutting-edge financial solutions, strengthening internal and external collaboration, and promoting financial inclusion for all.
“Ultimately, our vision is to be the leading force in the banking and financial services sector, setting the benchmark for excellence in customer service, innovation, and contributions to national economic development. I would like to take this opportunity to express my sincere gratitude to our shareholders, including the co-operative societies, customers, employees, and all stakeholders for their support and trust.
People’s Bank Chief Executive Officer/General Manager Clive Fonseka said: “Amidst unforeseen challenges, our team has once again exemplified extraordinary resilience, adaptability, and a commitment to excellence. The results we’ve achieved are not only the highest in the institution’s history but also a testament to our ability to make meaningful progress despite the many obstacles we’ve encountered along the way.”
OSL take:
The income recorded by the state-owned People’s Bank indicates the strength and growth of Sri Lanka’s banking sector. Given that a strong and resilient banking sector is an important prerequisite for a country on the path to achieving regional hub status, the income and profits recorded by state-owned banks like People’s Bank and the Bank of Ceylon (BOC) serves as a confidence booster for foreign businesses/investors looking at engaging and doing business in Sri Lanka. The ongoing economic activities and the overall expansion in the country’s economy have presented a host of business/investment opportunities in the country’s key economic sectors. With Sri Lanka on a steady growth path supported by its geographical positioning in the Indian Ocean and strong trade ties enjoyed with many foreign countries while the authorities continue to improve on the ease of doing business environment in the country, the island nation presents the ideal business destination for foreign businesses/investors. The increasing business potential in the country’s many business/investment opportunities guarantee quick returns on investments (ROIs) for foreign businesses/investors while also enabling them to further expand operations through local collaborations. All these developments would be supported by a strong banking network that would assist in setting up businesses while also ensuring safety for the monies/investments of foreign businesses/investors.
| Article Code : | VBS/AT/20250306/Z_2 |