People’s Bank reports highest ever balance sheet growth in 2020
View(s):The People’s Bank has announced its results for the year ended December 31, 2020 reporting consolidated net loan growth of Rs. 315.7 billion, representing a 21.6 per cent growth year on year and accounting for close to one third of overall net sector credit extended during the period.
Close to two third of credit was to the state and state-owned enterprises. It’s consolidated assets reached Rs. 2,400.6 billion, up 17.1 per cent from end 2019 whilst its total deposits grew 21.8 per cent to reach Rs.1,935.2 billion from end 2019. Of deposit growth, 53.8 per cent came from current and savings accounts, the bank said in a media release this week.
From the COVID-19 moratorium perspective, the banking group extended relief to 460,000 retail customers – the largest for any financial services provider – and over 21,000 businesses. In addition, it introduced multiple loan schemes at highly concessionary rates of interest. It extended over Rs. 27 billion to revive SMEs including Rs. 13.7 billion in Saubghaya loans, and over Rs. 10 billion to the agriculture sector. All these however saw consolidated net interest income drop by 5.3 per cent to Rs. 74.4 billion, the release said
Consolidated operating income reached Rs. 90.8 billion, a 5.8 per cent drop from 2019. Total consolidated taxes and dividends to the Government during the year amounted to Rs. 16.8 billion down from Rs. 25.1 billion in 2019. Consolidated post tax profit amounted to Rs. 16.1 billion, down by 0.5 per cent from 2019. On a bank standalone basis however, post tax profit was Rs. 14.2 billion, up 9.7 per cent from 2019.
Commenting on the results, Chairman of People’s Bank Sujeewa Rajapakse said: “Unlike in a typical year, our success in 2020 is not measured by a typical top line or bottom line but by our national value added and customer centricity which was at the heart of every decision making process. An ability to go above and beyond a time of need is what ultimately defines this institution and the individuals who run it. The above all said, our job is far from over.”
Bank CEO/GM Ranjith Kodituwakku added: “2020 was an out of the ordinary year on many fronts. Operationally it was the year which put digital and technological capabilities of all institutions alike, and their contingency plans, to the ultimate litmus test. It was also the year which held customer centricity to account. Several measures were taken to ensure safety and stability of the institution such as reducing capital expenditures and focusing lending to more priority/ essential service sectors.”