People’s Bank Group PBT hits a record Rs. 24.1 b

People’s Bank has posted phenomenal financial results by end 2015, posting 13.3% YoY growth and recording the highest-ever Profit Before Tax of Rs. 19.5 b.  

Group PBT also experienced 11.5% growth, notching Rs. 24.1 b in 2015, compared to Rs. 21.6 b in 2014.  Profit After Tax for 2015 reached Rs. 12.6 b.

People’s Bank continued its formidable status of having the second largest deposit base in the country, observing a growth of 13.3% in its total deposit portfolio amounting to Rs. 899.2 b, of which the local currency savings deposit base saw an incline of 17.1% to a total of Rs. 356.7 b. Aligned with this, the CASA ratio increased to a notable 47.8%.  

The commendable results are further compounded with the bank’s Net Interest Income increasing to Rs. 43.7 b from Rs. 30.1 b in 2014, with a YoY growth of an impressive 45%, while total loans also gained significant upward momentum to Rs. 829.2 b, increasing by 21%.

The bank expanded its balance sheet by Rs. 150 b to reach Rs. 1.2 t with a percentage of 14.6, reiterating its focused strategies in the results-oriented culture it has mooted.

Having always remained cognisant in adhering to a stringent risk management framework, the best practices infused into the bank’s astute management of credit risk is well reflected in the overall improvement observed in asset quality and the gross NPL ratio of 2.4%, positioned well below industry average of 3.2%.

ROA is 1.8% and ROE is 27.1%, affirming the bank’s well-managed strategies that form the foundation for a strong, stable and sustainable custodian of public funds.

There however, has been a palpable change in the way People’s Bank has been doing business from 2015, which Chairman Hemasiri Fernando states is the reason for the impressive financial results the bank has reported.

“Year 2015 qualifies to be termed ‘Business as unusual’ for People’s Bank, as we did not overlook our regular business matters at the expense of strategy development nor due to the volatility that prevailed for most of the year. This is the reason we have posted such good results, including the best profits to-date.”

Enthusiastic about taking People’s Bank through its turning point in its 55-year history, Fernando has begun laying the trusses to make the bank a completely transformed financial entity, fully digitised by 2020, operating on interconnected ICT platforms managed by its very own dynamic team.  

Explaining the stellar performance further, CEO/GM N. Vasantha Kumar commends his team for being singularly focused in not only exceeding annual growth targets, but also in finalising and implementing the groundwork for the Strategic Plan until 2020.

“It is not only our customers and immediate stakeholders who should benefit from their relationship with us but the nation as a whole. This is well evidenced in our contribution in taxation which increased by Rs. 5.7 b, while our economic contribution has grown nearly 25%. Our input into the country’s infrastructure via road development, water management and hospital construction projects, as well as infusing significant funding initiatives to empower rural and underserved sectors has reaped in cascading rewards in a national sense.”

Kumar proclaims that People’s Bank sustained strong credit expansion by promoting its expansive retail product, which prompted the highest-ever retail lending growth of Rs. 80 million. In addition, the bank’s stature as a sophisticated financial services provider is well reflected in the two largest debenture issues the country has had and in debuting its equity IPO for People’s Insurance.

“Being the custodian of the largest savings deposit base in the country, we have unequivocally constructed a strong base of confidence and trust among our stakeholders and thereby our brand. Our honour roll of accolades including Service Brand of the Year and the Banking Service Provider of the Year at the SLIM Nielson People’s Awards in 2015; winning it for the ninth consecutive time surely bodes well for our next step ahead.”

This next step according to the Chairman is that People’s Bank has a responsibility to uplift the economic and social standards of the people of Sri Lanka and technology would be the tool that unlocks the potential for this.

“Our stakeholders must be a partner in realising this vision for a modern more flexible and responsive national economic asset and we in turn pledge that People’s Bank will continue to be a bank that echoes the pulse of the people.”