People’s Bank released its financial results for the first half ended June 30, 2024 on Friday.
The Bank reported total consolidated operating income of Rs. 44.6 billion and post-tax profit of Rs. 3.2 billion.
Excluding the impact of exceptional adjustments in view of greater prudence considering current macro-economic circumstances, these figures on a normalised basis were otherwise Rs. 62.6 billion and Rs. 12.7 billion, a growth of 29.9% and 104.2%.
Consolidated net interest income rose to Rs. 35.0 billion during the 1H from Rs. 31.4 billion in the corresponding period in 2023.
On a normalised basis, excluding the impact of any exceptional items, consolidated net interest margins improved to 3.2% from 2.1% during 2024 reflecting the reducing term deposit cost of funding. Consolidated net fees and commissions amount to Rs. 7.4 billion – representing a 19.3% growth on a like-for-like basis.
Total consolidated operating expenses amounted to Rs. 34.6 billion (2023: Rs. 30.2 billion).
Total consolidated customer deposits touched Rs. 2,885.6 billion (end 2023: Rs. 2,745.2 billion) while net loans amounted to 1,866.8 billion (end 2023: Rs. 1,823.8 billion). The impaired loan ratio also showed improvement relative to end 2023. Total consolidated assets reached Rs. 3,364.1 billion at period end (end 2023: Rs. 3,208.2 billion).
The Bank’s total Tier I and Total Capital Adequacy Ratios were 11.5% and 15.9% at June 30, 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.8% and 16.8%, respectively (end 2023: 13.7% and 18.2%).
The Bank’s solvency levels continue to remain sound. Further efforts to bolster its regulatory capital, including for the purposes of additional contingency, is currently in process.
Chairman of People’s Bank, Sujeewa Rajapakse said, “As we anticipate and navigate the complexities which yet exist in a recovering macroeconomic landscape, our focus remains on fostering innovation, enhancing collaboration, and driving advancement across every facet of our business. We, as always, continue to play our leading role in the country’s economic revitalisation.”
Chief Executive Officer/ General Manager Clive Fonseka, said, “Amid unforeseen challenges, our team has yet again exemplified its resilience, adaptability, and steadfast commitment.
The results from the first half of the year not only illustrate our ability to advance but also do so despite the many difficulties.
“By emphasising operational efficiency, elevating the customer experience, and strategically investing in technology and talent, we have adeptly positioned ourselves for sustainable growth over the longer-term.
“We remain committed to fostering innovation, cultivating collaboration, and driving transformative change at every juncture, ensuring that we maintain our leadership position within the industry,” he said.
