“People’s Bank ends 2023 with remarkable successes on multiple fronts”

People’s Bank announced the results for its year ended December 31, 2023 reporting total consolidated operating income and pre-tax profit of LKR 96.8 billion and LKR 19.3 billion, respectively.

A People’s Bank press release said: ‘Reflecting high interest costs on term deposit funding, due to the high interest rate environment which prevailed during 2022 and early 2023 – and significant interest concessions extended to the customers for the ultimate benefit of the country – saw consolidated net interest income slip to LKR 67.8 billion during the year from LKR 91.0 billion in the year prior. However, the last quarter of the year showed a forward movement on this front as its interest expense continues to normalize with the current interest rate environment. Consolidated net fees & commission income amounted to LKR 13.9 billion, reflecting a 11.0% growth over 2022 less extraordinary items during the said prior year.

“Despite inflation-pushed cost pressures, total consolidated operating expenses rose by only 5.5% to reach LKR 62.2 billion (2022 LKR 59.0 billion) ultimately reflecting stringent cost control and efficiency improvements which compared well with peers.

“Total consolidated customers’ deposits and rupee loans grew by 12.0% and 1.4%, respectively whilst it’s all currency net loans contracted by 4.0% reflecting both the appreciation of the rupee impact on its foreign currency loan book as well as measured growth by both the Bank and the Group in the first half of the year considering macro-economic circumstances. Total consolidated assets stood at LKR 3,208.2 billion at period end (end 2022: LKR 3,133.1 billion).

“The Bank’s Tier I and Total Capital Adequacy Ratios were 12.4% and 17.4%, respectively at December 31, 2023 (end 2022: 11.9% and 16.3%) whilst, on a consolidated basis, it was 13.7% and 18.2%, respectively (end 2022: 13.3% and 17.2%). The Bank’s solvency levels remain sound ultimately reflecting efforts made since the onset of Basel III on July 1, 2017. Further efforts to bolster its regulatory capital, including for the purposes of additional contingency, is currently in process.

“Commenting on the results of the Bank and the Group, the Chairman of People’s Bank, Sujeewa Rajapakse, stated, among other things, that: ‘Considering the added burden shouldered as a State Bank – amidst the most challenging set of circumstances over the last four (4) years, I am very pleased with the Bank’s overall performance on both quantitative and, even more importantly, a qualitative front.

Taking on some of these challenges head-on, we have navigated the first phase of the Domestic Debt Optimization program with great success, converted our rupee liquidity stresses to now an all-time high excess, further augmented our regulatory capital amidst limiting circumstances and drive super normal growth across all our overall digital platforms – all of which whilst continuing to place national interest and serving our customers at the heart of all our decision making ahead of profitability.’