People’s Bank, Sri Lanka’s leading financial services provider, announced its financial results for the nine months period ended September 30, 2024. The Bank reported total consolidated operating income of LKR 75.4 billion and post-tax profit of LKR 6.4 billion. Excluding the impact of exceptional adjustments in view of greater prudence, considering the yet to be finalized debt restructuring initiatives, these figures on a normalized basis were otherwise LKR 101.5 billion and LKR 20.2 billion, respectively, reflecting a growth of 50.0% and 193.6%.

Consolidated net interest income rose to LKR 60.4 billion during the nine months from LKR 44.6 billion in the same period 2023. On a normalized basis, excluding the impact of the aforementioned exceptional items, consolidated net interest margins improved to 3.2% from 2.1% during 2024 primarily reflecting the reduced and reducing term deposit cost of funding. Consolidated net fees & commissions amount to LKR 11.3 billion - representing a 25.1% growth on a like for like basis. Total consolidated operating expenses amounted to LKR 52.4 billion (2023: LKR 45.9 billion).

Total consolidated customers deposits touched LKR 2,933.2 billion (end 2023: LKR 2,745.2 billion) whilst net loans amounted to 1,848.5 billion (end 2023: LKR 1,823.8 billion). Total consolidated assets reached LKR 3,396.0 billion at period end (end 2023: LKR 3,208.2 billion).

The Bank’s total Tier I and Total Capital Adequacy Ratios were 11.1% and 16.9%, respectively at September 30, 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.6% and 17.7%, respectively (end 2023: 13.7% and 18.2%). The Bank’s solvency levels continue to remain sound with augmented by the recent LKR 13.5 billion Basel III compliant Tier II debt issuance.

Commenting on the results of the Bank, its Chief Executive Officer/ General Manager Mr. Clive Fonseka stated that: “The Bank has made notable positive progress on several fronts despite the many challenges encountered due to the country’s deeply distressed macro-economic circumstances. While a few obstacles yet remains, we remain confident that these will also be resolved in the near-term, under the leadership and guidance of our Chairman and Board of Directors, and with the support of all key stakeholders. Post thereto, our focus remains to continuously enhance every aspect of the Bank’s business with our core priorities being to further enhance operating efficiencies, foster innovation, and ultimately deliver greater value to the country’s economy.

As we continue to operate within the complexities of a recovering macroeconomic landscape, we remain committed to intensifying our efforts in several core areas. Foremost, on driving innovation across all aspects of our business, ensuring that we stay ahead of the curve in delivering cutting-edge financial solutions. Two, to strengthen collaboration, both within the organization and with external partners and thereby creating a more cohesive and agile approach to problem solving. Three, to further promote financial inclusion so that all segments of society have the opportunity to participate in, and benefit from, the broader economy.

Ultimately, under the guidance of our Chairman and Board of Directors, our goal is to be the foremost financial services provider in the country, setting the standard for excellence in customer service, innovation, and contribution to national economic development. we remain confident that by staying focused on our long-term vision and by working collaboratively with all, we can achieve this ambitious goal and help shape a more prosperous future for our nation"

Commenting on the results, the Bank’s Head of Finance Mr. Azzam A. Ahamat stated that: "Amidst unforeseen challenges, the Bank has once again demonstrated its resilience, adaptability, and unwavering commitment to growth across various aspects of its business; both from a quantitative and qualitative standpoint. These nine months’ results on a normalized basis not only reflect the Bank’s ability to make meaningful progress, but also its strength in marching forward amidst the numerous obstacles encountered along the way.

By focusing on operational efficiency, continuously improving its customer experience, and making strategic investments in both technology and talent, the Bank has well positioned itself for sustained growth over the long term. These efforts have fortified the Institution’s foundation, better enabled it respond fairly quickly to changing circumstances, helped it improve its services, and, most importantly, enabled the delivery of consistent incremental value to its customers and other stakeholders.

As we approach the final quarter of the year, we remained focused on our strategic priorities. While challenges persist, we are confident in our ability to navigate them successfully, leveraging on our collective strengths and expertise. With renewed energy and a sharpened sense of purpose, we remain eager to continue advancing towards our objectives. We remain excited about the opportunities that lie ahead and are confident that our sustained efforts will drive even greater success, positioning us for a future of lasting impact and continued industry leadership. We look to the future with great degree of hope and optimism!"