People’s Bank achieves strong performance in Q1-2024

Above: Chairman Sujeewa Rajapaksa and CEO Clive Fonseka

People’s Bank, Sri Lanka’s leading financial services provider, announcing its financial results for the first quarter ended March 31, 2024, reported total consolidated operating income of Rs. 20.4 billion and post-tax profit of Rs. 2.5 billion.

Excluding the impact of exceptional adjustments due to greater prudence in view of current macro-economic circumstances, these figures on a normalised basis were Rs. 28.4 billion and Rs. 6.6 billion, respectively, reflecting a growth of 18.2 per cent and 35.8 per cent over the same 2023 period, the bank said in a media release.

Consolidated net interest income rose to Rs 16.1 billion during the quarter from Rs.15.3 billion in the same period 2023. On a normalised basis, excluding the impact of any exceptional items, consolidated net interest margins improved to 3 per cent from 2 per cent during 2023 reflecting the reducing term deposit cost of funding.

Total consolidated customers deposits touched Rs.2,808.3 billion (end 2023: Rs.2,745.2 billion) whilst net loans amounted to Rs.1,845.4 billion (end 2023: Rs.1,823.8 billion). The impaired loan ratio also showed improvement relative to end 2023.

Commenting on the results of the bank and the Group, the Chairman of People’s Bank, Sujeewa Rajapakse, stated that: “We are pleased with the steadfast progress made by the bank on many fronts even amidst interim pressures stemming from the yet ongoing - and likely to be soon concluded - debt restructuring initiatives of the Government of Sri Lanka. We reasonably expect that these pressures will normalise in the near term with the support of all key stakeholders. Notwithstanding this, the bank has yet again demonstrated its strength, resilience and capacity to deliver positive growth across all core operating metrics even amidst such limiting circumstances.”

In his comments, the bank’s Chief Executive Officer/ General Manager Clive Fonseka, said: In the face of unforeseen challenges, our team has once again demonstrated its resilience, adaptability, and unwavering commitment. Our first-quarter not only showcases our ability to grow amidst challenges but importantly, the strength and resilience of our business. By prioritising operational efficiency, enhancing customer experience, and investing in technology and talent, we have positioned ourselves for sustainable growth and long-term success.”