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People’s Bank reports consolidated PAT of Rs. 4.6 Bn.

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Consolidated gross income expands by 49.4% to Rs. 116.8 Bn
Chairman Sujeewa Rajapakse CEO, GM (Acting) Clive Fonseka
Chairman Sujeewa Rajapakse CEO, GM (Acting) Clive Fonseka

People’s Bank reported a total consolidated operating income and pre-tax profit amounting to Rs 24 billion and Rs 7.2 billion, respectively (Q1-2022: Rs 42.6 billion and Rs 11.0 billion). for its quarter ended March 31, 2023.

Similar to 2022, the quarter continued to be characterized by higher interest costs; due to the high interest rate environment which prevailed. This saw consolidated net interest income dip by 49.7% to Rs 15.3 billion during the period relative to Q1-22. This, in part, also reflected the Bank’s efforts to defer re-pricing of some of its loans to its more sensitive customer segments.

Reflecting inflation pushed cost pressures, much of which originated in the period after Q1-22, saw consolidated total operating expenses rise by 10.1% to reach Rs 14.4 billion (Q1-22: Rs 13.1 billion). Total consolidated customers deposits grew to reach Rs 2,513.1 billion – i.e., by 2.6%, whilst consolidated net loans contracted by 4.2% to Rs 1,835.1 billion.

The Bank’s Tier I and Total Capital Adequacy Ratios were 11.8% and 16.2%, respectively at March 31, 2023 (end 2022: 11.9% and 16.3%) whilst, on a consolidated basis, it was 13.0% and 16.9%, respectively (end 2022: 13.3% and 17.2%).

Chairman of People’s Bank, Sujeewa Rajapakse, said “Whilst the sector has, and continues to reel with many headwinds over the last several years. Our first quarter results remain testimony to our continued strength and resilience, and adaptability even in the most adverse set of

circumstances.Over the last several years, the Bank has successfully met the needs of its diverse stakeholders, leading from the front in many instances so to ensure the country is first prioritized, customer interest are safeguarded, government endeavors are supported whilst, at the same time, the Bank’s commercial interests are also met. Our top line growth during the quarter attests to the growth of our core banking operations whilst the high interest rate environment which prevailed has naturally led to the inevitable earnings pressure as seen throughout the industry. “Looking ahead, with several positive developments seen on a macro-economic front including those stemming from the IMF’s Extended Fund Facility, we look forward to the future with a great degree of optimism.”

The Bank’s Chief Executive Officer/ General Manager (Acting) Clive Fonseka, stated that: “Despite the many pressures, including those unique to a State-Owned Institution, we have continued to make noteworthy progress on several fronts and have addressed some of the most pressing matters within a short span of time.Our primary focus has, and continues to be, in further bolstering our liquidity, driving key areas of strategic importance, and managing our asset quality whilst supporting our customers navigate through these challenging times. We are currently also taking early steps to bolster our regulatory capital from current levels.”



Wednesday, May 31, 2023 – 01:00

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