People’s Bank achieves consolidated pre-tax profit of Rs. 17.7 b in 1Q

Chairman Professor Narada Fernando (left) and CEO/General Manager Clive Fonseka

• Consolidated gross income crosses Rs. 100 b for 1Q alone
• Reports group ‘all-time high’ post-tax profit of Rs. 11 b
• Total consolidated assets, deposits, and net loans expand to Rs. 3.6 t, Rs. 3.1 t, and Rs. 1.7 t, respectively, as at 31 March 2025
• Continues to remain at institutional all-time highs; All Currency and Rupee liquidity coverage over 282.9% and 340.3%, respectively 
• Total consolidated capital adequacy strong at 17%, whilst 16.5% on solo basis, with Common Equity Tier I being 11.8% and 10.5%, respectively
• Digital onboarding continues with total customer base at 3.3 m at end March 2025 and increasing, the largest for any financial services provider in country

People’s Bank yesterday announced its results for the period ended 31 March 2025, reporting a total consolidated operating income of Rs. 45.1 billion and post-tax profit of Rs. 11 billion, reflecting a growth of 120.8% and 347.2%, respectively. 

Consolidated net interest income rose to Rs. 38.6 billion during the said period from Rs. 16.1 billion in the comparable period in 2024 – reflecting timely pricing of assets and liabilities in line with changing market interest rates. As a result, consolidated net interest margins improved to 4.3% in 2025 from 2% in 2024. Consolidated net fees and commissions amounted to Rs. 4.5 billion for the period, representing a growth of 20.6% – also a group all-time high for the same period. Total consolidated operating expenses amounted to Rs. 19.9 billion, up from Rs. 17.6 billion in 2024.

Total consolidated customers’ deposits reached Rs. 3,106.5 billion (end 2024: Rs. 2,947.9 billion) whilst net loans were Rs. 1,689.4 billion (end 2024: Rs. 1,665.0 billion). Total consolidated assets reached Rs. 3,648.7 billion (end 2024: Rs. 3,471.7 billion). 

The bank’s total Tier I and Total Capital Adequacy Ratios were 11.0% and 16.5%, respectively, at 31 March 2025 (end 2024: 10.9% and 16.5%), whilst on a consolidated basis, it was 12.2% and 17.0% (end 2024: 12.6% and 17.7%). To save any doubt, these were after taking into account all prudential deductions; including those specifically relating to the sovereign backed State-owned enterprise restructure. which was taken in full in year 2024 all things prudent considered. In addition, the bank’s solvency levels were augmented by the Rs. 13.5 billion Basel III compliant Tier II debt issuance as undertaken during Q32024. 

People’s Bank Chairman Professor Narada Fernando said: “We are pleased with our first quarter results, which reflects our continued progress across multiple fronts and the sustained momentum we developed in 2024. The stabilisation and normalisation of previously stressed areas within core banking functions underscore the significant strides we have made internally. With many of these institutional challenges now effectively addressed, we remain well-positioned to contribute meaningfully to the Government’s broader agenda to strengthen the national economy, while maintaining our trajectory of consistent and robust profitability as a strong, independent State institution.

“Operating within the ongoing complexities of a recovering macroeconomic environment, we remain steadfast in our commitment to advancing on several strategic fronts. One, on driving innovation across all aspects of our business, ensuring that we stay ahead of the curve in delivering cutting-edge financial solutions. Two, to strengthen collaboration, both within the organisation and with external partners and thereby creating a more cohesive and agile approach to problem-solving. Three, to further promote financial inclusion so that all segments of society have the opportunity to participate in, and benefit from, the broader economy.

Ultimately, our vision is to be the nation’s foremost financial services provider – setting the benchmark for excellence in customer service, innovation, and impactful contribution to national development. We are confident that, by being focused on our long-term goals and by fostering strong partnerships at every level, we can realise this vision sooner than later and help shape a more inclusive and prosperous future for all in the country.”

People’s Bank Chief Executive Officer/General Manager Clive Fonseka said: “I am proud to share that the results for the first quarter represent the highest performance in our institution’s history – a clear reflection of our collective determination and ability to achieve meaningful progress even in the face of many challenges. This is an ultimate testament to the team’s extraordinary resilience, adaptability, and an unwavering commitment to growth across all aspects of business operations.

This success stems from an unrelenting focus on enhancing operational efficiency, consciously and very diligently elevating the customer experience, and making deliberate strategic investments in technology. These pillars have not only fortified our foundation but also positioned us to swiftly respond to changing market dynamics, refine our services, and – through which – deliver sustained value to all our stakeholders.

As we look to the remainder of the year, we remain resolute in executing our strategic priorities. Whilst we recognise that challenges are a constant, we remain confident in our ability to navigate them with purpose and precision. Our continued progress will be driven by the same values that have brought us this far – resilience, innovation, and a deep commitment to creating a long-lasting impact.”