Historic Profitability: People’s Bank achieved its highest-ever standalone Profit After Tax (PAT) of LKR 40.2 billion.

Asset Milestone: The People’s Bank Group reached a historic milestone with consolidated total assets surpassing LKR 4.0 trillion.

Operational Stability: The Bank maintained robust capital and liquidity, with a Total Capital Adequacy ratio of 16.5% and a Rupee Liquidity Coverage Ratio of 263.3%.

National Impact: Successfully supported the "Pay Digital" agenda and MSME development, reinforcing its role in national economic empowerment.

People’s Bank has announced the strongest financial performance in its history for the year ended December 31, 2025, reporting an all-time high standalone Profit After Tax (PAT) of LKR 40.2 billion. This landmark achievement underscores the Bank’s exceptional stability and its pivotal role as a driver of national economic activity. Despite the external challenges posed by Cyclone Ditwah during the year, the Bank utilized proactive business continuity measures and prudent risk management to limit financial impact and deliver these record-breaking results.

The Bank’s stellar standalone performance was the primary driver of its success, characterized by significant growth across all key income lines. Operating income rose by 32.5% to LKR 165.8 billion, while net interest income grew by 32.8% to LKR 142.4 billion. This growth lifted the net interest margin to 4.1%, up from 3.4% in the previous year. The Bank’s balance sheet also demonstrated steady expansion, with solo assets reaching LKR 3.7 trillion, deposits increasing to LKR 3.2 trillion, and net loans growing to LKR 1.7 trillion. This solo strength is underpinned by a robust capital position, with a Total Capital Adequacy ratio and Tier 1 ratio of 16.5% and 12.2% respectively, well above regulatory thresholds.

On a consolidated level, the People’s Bank Group marked a historic milestone as total assets and total loans portfolio reached the LKR 4.0 trillion and LKR 2.0 trillion thresholds respectively. The Group reported a Profit After Tax of LKR 43.5 billion, with consolidated gross income rising to LKR 424.0 billion. This achievement reflects sustained expansion across both core banking operations and subsidiaries, reinforcing the Group’s strengthened financial capacity and its firmly established strategic position within the financial sector.

Leadership Commentary

Commenting on the full-year performance, Chairman Professor Narada Fernando noted that the results demonstrate the Bank’s ability to navigate challenges while strengthening its operational foundations. He stated that the recovery of previously pressured segments has improved overall stability, enabling the Bank to contribute meaningfully to the Government’s economic priorities while ensuring sustainable and prudent profitability. He also reaffirmed the institution’s commitment to innovation, partnerships, and broader financial inclusion so that the benefits of economic progress reach communities across the country.

Chief Executive Officer/General Manager Mr. Clive Fonseka described the twelve-month outcome as a landmark achievement for the Bank. He explained that the results were delivered amid a deliberate transformation of the Bank’s operating model, with greater emphasis placed on expanding private-sector business alongside its traditional role. Mr. Fonseka further highlighted that the record-breaking performance, together with the Group’s historic LKR 4.0 trillion asset milestone, underscores the Bank’s strengthened scale, operational resilience, and long-term strategic positioning. He added that continued investments in efficiency, customer experience, and digital capabilities have strengthened competitiveness, improved responsiveness, and positioned the Bank for sustainable growth in the years ahead.

Beyond financial metrics, People’s Bank has made qualitative contributions to the country's economy through inclusive and purpose-driven initiatives. The Bank played a central role in the national "Pay Digital" agenda by increasing awareness and usage of the bank’s digital banking platforms which exceeded 4.0 million subscribers. Furthermore, its commitment to grassroots economic empowerment was evidenced by community outreach for World MSME Day and the BizTeens Challenge 2025, which fostered entrepreneurship among younger demographics. By aligning its business and operational strategies with national priorities, the Bank continues to serve as a trusted partner in Sri Lanka’s economic progress.