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 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 and 61.8%in 2019.
In 2021the 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 totalled LKR 20.4billion 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 the end of 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 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 the end of 2021, it extended over LKR 63.0 billion to SMEs through various loan initiatives.
In addition, People’s Bank in conjunction with the Small Holder Agri-Business Partnership (SAP), introduced a low-interest credit scheme for 5,000 farmers with an initial provision of LKR 1.0 billion. To support the production of local fertilizer, the Bank introduced the Sarabhoomi loan scheme whilst to promote women entrepreneurship, it extended LKR 533.5 million. The Bank also introduced additional loan schemes to assist self-employment in the agricultural and handicrafts spaces.
From a Personal Loan perspective, in its effort to uplift the housing and construction sector, the Bank granted over 10,000 home loan facilities amounting to over LKR 185.8 billion at the end of 2021. In addition, by the end of 2021, it had disbursed over LKR 5.5 billion to retired disabled officers of armed forces and over LKR 68.5 billion to government pensioners.