3Q results point to great year for People’s Bank

Having ended 2014 on a very high note, not only surpassing Rs 1 Tn Balance Sheet but also amassing a number of global accolades, the third quarter results for People’s Bank points towards the closing of a very successful year by end 2015.  

The Bank has gained the best results ever posted in any 3Q  and all key performance indicators notch consistent growth paradigms, a testament to People’s Bank’s commitment to maintain an ethos of stability, strength and sustainability.  

Profit Before Tax 3Q was Rs 12.5 Bn, well above the Rs 11.5 Bn notched in the same period last year with 8.5% growth.  Similarly, Profit After Tax also had a YoY growth of 7.5%, to post an impressive Rs 8.9 Bn in profitability.  This is compared to Rs 8.3 Bn last year.

Chairman Hemasiri Fernando is quite jubilant with the results, emphasizing that the Bank’s emphasis on being the pulse of the people has been the underlying tenet for success.  “Balance sheet growth has maintained its phenomenal upward trajectory to stand at Rs 1.1 Tn, which shows the prowess we possess and the financial stability we have retained.  Our Group too has done exceptionally well, showcasing PBT of Rs 16.9 Bn compared to Rs 15.3 Bn last year, reiterating that we have astutely mooted businesses within our Group that are sustainable and aligned with macro growth paradigms.” 

People’s Bank’s accent on being accessible and available to a wide demographic through nearly 740 branches and one of the largest ATM networks of over 2,500 well spearheaded by a team who take customer service to new realms has seen deposit mobilization continuing with its upward trajectory.  Total Deposits hence have grown by 9.6%.  While the CASA Ratio stands at a prudent 47.3%, total deposits reached Rs 869.8 Bn and the savings deposit portfolio, which yet stands as the largest in the country, is an impressive Rs 363.3 Bn 3Q.  Growth notched in savings deposits is a commendable 13.9% for the period December 2014 to September 2015. 



 “The fact that we were able to increase our loan income and garner low cost deposits that enabled business growth is surely one of the positive dynamics that enabled us to showcase the good results,” explains General Manager/CEO N Vasanthakumar.  

He elaborated stating that net interest income growth stands at 62.5%, up from Rs 19.9 Bn last year to Rs 32.4 Bn this year, while total gross loans grew by 18.4% to Rs 811.4 Bn.  Return on Assets (before tax) is 1.5% while Return on Equity is 25.7%.

Having amassed a number of internationally prestigious awards including  Bank of the Year at the European Global Banking and Finance Awards for two years consecutively and adjudged Sri Lanka’s Best Banking Group and Most Sustainable Bank at the World Finance Banking Awards also for two years consecutively, Vasanthakumar points to People’s Bank’s deeply embedded values and ideals as being the fundamental for its success.  

 “We have never believed in being complacent,” he says.  “We’ve always been a pioneer and because of this, we are on constant quest to raise the bar.  This means that from our service standards, to network reach for greater accessibility, to innovative products and services, People’s Bank is always striving to be the best.  Into this equation, we have augmented our IT platform, where our 16 million customers are given products and services in real-time.  We recognize that the entire world is moving into a digital age and that means that we must be up in front, leading the way.  State of the art IT initiatives are already being implemented on a sophisticated framework which undoubtedly will soon make People’s Bank the Most Digitalised Bank in Sri Lanka.”