Business
‘People’s Bank continues to demonstrate resilience despite extraordinarily limiting circumstances’
People’s Bank yesterday announced the results for its year ended December 31, 2022 with total consolidated gross revenues, total operating income, and pre-tax profit amounting to LKR 391.2 billion, LKR 130.0 billion, and LKR 26.7 billion, respectively (2021: LKR 236.8 billion, LKR 110.7 billion and LKR 37.2 billion).
Extracts of a People’s Bank press release: ‘Primarily reflecting an extraordinarily high interest rate environment that prevailed – consolidated interest income rose by 58.0% during the year under review to reach LKR 351.4 billion whilst interest expenses soared by 107.5% to LKR 260.4 billion, reflecting the faster pace repricing of term deposits relative to loans. As typically seen throughout the industry, most term deposits at People’s Bank are with maturities of 12 months or less. In addition, in view of preserving and protecting its most vulnerable customer segments – the Bank and Group shouldered much of the interest cost increases – either by delaying or deferring any re-pricing of their loans. These collectively saw Consolidated Net Interest Margins slip by 6.0% to LKR 91.0 billion (2021: LKR 96.9 billion).
‘The Group’s non-funded income accounted for 30.0% of its total operating income during 2022 (2021: 12.5%) aided by an 81.1% increase in consolidated net fees and the extraordinary impact arising from the rupee devaluation. Excluding any one-off increases in fees on a Bank standalone basis, growth was still strong at 26.1% ultimately showcasing the Bank’s ongoing effort to consistently and very systematically improve its non-funded income sources year-on-year, more so in a highly volatile interest rate environment.
‘Reflecting high inflationary pressures during the year under review which peaked at close to 70.0%, total consolidated operating expenses rose by a measured 16.8% to LKR 59.0 billion (2021: LKR 50.5 billion); reflecting prudent cost control and efficiency improvements as exercised at every instance so reasonably possible. This compares well with most peers. As a result, the Bank and Group were able to successfully maintain its cost-to-income ratios at close to 2021 levels despite many limiting circumstances.
‘Relating to customer delinquencies and credit costs, the Bank assessed all its customers’ stress levels, including more importantly its larger key segments, and staged them on a preemptive and prudent basis. To its benefit, the Bank’s exposure to foreign currency investments subject to external debt restructuring was amongst the lowest with an aggregate amortized cost of only US$ 51.4 million at December 31, 2022.
‘Total consolidated customers deposits grew by 13.0% to reach LKR 2,450.1 billion whilst consolidated net loans contracted by 3.8% to LKR 1,915.8 billion reflecting the Bank’s and Group’s diligent approach to credit growth more so in a contracting macro-economic context, amongst other factors. Total consolidated assets crossed LKR 3.0 trillion to reach LKR 3,133.1 billion expanding by 10.6% from the end 2021.
‘Commenting on the results, chairman, People’s Bank, Sujeewa Rajapakse, stated that: “From a macro-economic perspective, 2022 was the culmination of economic stresses and stress events over the last several years. It was a year that saw the country’s external reserve position falling to a level previously unseen, the rupee devalue by close to 80.0%, inflation soar to nearly 70.0%, policy rates increase in a manner unprecedented in view of curbing inflationary pressures and, all in all, resulting in the country’s credit rating fall to a historic low and the economy contract by close to 11.0% which is deepest seen since independence. 2022 was therefore not a year where the top-line or bottom line was the prime focus but safeguarding customer interests in their absolute time of need, strengthening liquidity and the overall risk management and the governance framework of the Institution for its long-term sustainability was and where improving efficiency and productivity at every instance possible was at the core of all conversations and decisions. All these considered, including the added burden shouldered as a responsible State Institution – we are pleased with our 2022 results both on a quantitative and, more importantly, a qualitative front.’
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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