People’s Bank continues impressive performance

People’s Bank last year recorded a 20.8 percent growth in profit, its fifth successive year in which the bank has shown an impressive performance. The bank’s unaudited financials show profit before taxation and appropriations reaching its highest level of Rs.4.2 billion last year while the profit before tax for the group recorded Rs.5.1 billion.

Revenue indicated a growth of 4.7 percent over the year 2005 and the profit after taxation saw a 20.8 percent growth and retained profits after the payment of dividends grew by 29.3 percent over the previous year. “People’s Bank has had a very successful year in relation to the growth of deposits with total deposits reaching Rs.270 billion showing a growth of 19.7 percent. The bank’s capital funds now amount to Rs.11.2 billion up from Rs.4 billion over the previous year,” said Dr. P. A. Kiriwandeniya, Chairman, People’s Bank. He said that the Bank’s contribution to the government in the form of taxes and levies increased by 11.5 percent to reach Rs.3.6 billion.

Asoka de Silva, CEO/GM, People’s Bank said that the second phase of People’s Bank’s major restructuring drive, based on the strategic plan initiated in 2001, was completed in three years. “The main area of focus of the bank’s development plan has been to create a performance-oriented culture,” he said.

Insisting that the bank will further accelerate the recovery of longstanding, non-performing loans (NPL) he added that the amount recovered was Rs.1. billion in 2006. “As a result, the NPL ratio was reduced to seven in 2006, from 11 percent in 2005 and it was cut down from Rs.17.4 billion to Rs.15.9 billion. The overall slippage in the non-performing category from the new advances since 2002 is below three percent,”he said.

During the year, People’s Bank put in place short, medium to long term strategies for development finance, mainly concentrated on the development of micro, SME and agricultural sectors. The bank extended value added services to viable industries in livestock development, dairy farming, and supported rice-based product development.