People’s Bank today announced the results for its nine-months period ended September 30, 2023 with total consolidated operating income and pre-tax profit was LKR 67.6 billion and LKR 11.4 billion, respectively.
Due to the higher cost of term deposit funding – which stemmed from the high interest rate environment which prevailed during much of 2022 -consolidated net interest income slipped to LKR 44.6 billion during the nine-months ended September 30, 2023. Reflecting rupee depreciation and inflation driven cost pressures, much of which originated since Q222, consolidated total operating expenses rose by 14.7% to reach LKR 45.9 billion.
Total consolidated customers deposits grew to reach LKR 2,652.6 billion – i.e., by 8.3%, whilst consolidated net loans contracted by 5.4% to LKR 1,812.1 billion. Total consolidated assets stood at LKR 3,131.7 billion as at September 30, 2023. The Bank’s Tier I and Total Capital Adequacy Ratios were 11.6% and 15.7%, respectively as at September 30, 2023 whilst, on a consolidated basis, it was 13.1% and 16.8%, respectively.
Chairman of People’s Bank, Sujeewa Rajapakse, said, “The country’s outlook currently hinges on the success of its external debt restructuring, fiscal consolidation and the success in implementing several key structural reforms. Despite the many uncertainties, both macro-economic and otherwise our diversified portfolio and unique offerings have enabled us to positively contribute towards our overall performance during the first nine months of this year. One such example is our efforts to improve the overall foreign currency inward worker remittances for the benefit of the Bank and ultimately the country. Such initiatives rolled out since early 2022 has enabled the Bank to increase its market share to 18.0% from just 6.0% at end-2022 – which also testifies to the confidence placed in the Institution by that remit. Looking ahead by combining technological advancement, risk mitigation, customer-centric initiatives, and community engagement, we are confident that these strategies will help position our Bank for success in the years ahead.”
Bank’s Chief Executive Officer/ General Manager Clive Fonseka said, “we are making continuous strides in executing our operational plan notwithstanding the many challenges posed by the external environment. Our digitalization strategy remains at the heart of every internal thinking and decision-making process.”
“Substantial improvement in our liquidity profile during the year-to-date period is one of our key accomplishments and, with the economy showing positive signs of rejuvenation, we now remain focused on expanding our loan book in a measured manner.’
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