People’s Bank records unprecedented bottom line and balance sheet growth

For the financial year 2021 People’s Bank reported a consolidated total operating income of LKR 110.7 billion and total operating expenses amounting to LKR 50.5 billion which represents an increase of 21.9% and 14.9% respectively over 2020. Bank’s consolidated pre-tax and post-tax profits amounted to LKR 37.2 billion and LKR 28.1 billion; representing a 51.1% and 74.6% growth.

On a Bank standalone basis, Bank’s PBT and PAT figures were LKR 30.4 billion and LKR 23.7 billion, respectively-up 43.2% and 67.3% over 2020. Income growth primarily stemmed from net interest income, which accounted for close to 90.0% of total operating income and grew by 30.2% in line with the Bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4% to reach LKR 9.0 billion; reflecting People’s Bank’s efforts to improve its non-funded income sources. Underscoring the bank’s operational efficiency Bank’s cost to income ratio has shown a marked improvement at 51.1% in 2021 as compared with 54.3% in 2020 and61.8%in 2019.

In 2021 the Bank’s consolidated loan book expanded by 12.1% to reach LKR 1,990 billion while its consolidated deposit base grew by 12.1% to LKR 2,168.7 billion.

Total consolidated taxes and dividends to the Government of Sri Lanka totaled LKR 20.4 billion during 2021, representing a 25.1% growth over LKR 16.3 billion in 2020.Its Consolidated Tier I and Total Capital Adequacy was 13.4% and 17.9%, respectively at end 2021 (end 2020: 10.7% and 15.6%). On a Bank standalone basis, these were 12.6% and 17.8%, respectively (2020: 9.5% and 15.5%).All other regulatory ratios were all maintained well above the minimum requirement.

During the year, the Bank invested in rural development, supported small and medium-sized enterprises (SMEs) and encouraged women entrepreneurship. At end 2021, it extended over LKR 63.0 billion to SMEs through various loan initiatives; which included close to LKR 1.9 billion through its own scheme to help revive businesses across agriculture, information technology, logistics, manufacturing, tea and tourism.