Friday Aug 29, 2025
Friday Aug 29, 2025
Thursday, 28 August 2025 03:49 - - {{hitsCtrl.values.hits}}
Chairman Prof. Narada Fernando (left) and CEO/GM Clive Fonseka
People’s Bank yesterday said it reported an all-time-high Profit Before Tax (PBT) of Rs. 28 billion in the first half of 2025.
The bank reported an operating income of Rs. 80.8 billion and Profit After Tax (PAT) of Rs. 18.2 billion during this period. “This achievement is particularly noteworthy, as this profit was recorded after recognising significant impairment charges on exposures to several State-owned enterprises (SOEs),” the bank said in a statement.
The bank’s net interest income rose to Rs. 69.3 billion during the period, compared to Rs. 27.6 billion in the corresponding period of 2024, reflecting the timely re-pricing of assets and liabilities in line with changing market interest rates. Consequently, net interest margins improved to 4% in 1H 2025 from 3.4% as of end-2024. Net fees and commissions reached Rs. 8 billion, recording a 16.8% growth, the highest ever for the same period. Total operating expenses stood at Rs. 33.4 billion, down from Rs. 28.7 billion a year earlier.
Customer deposits reached Rs. 3.1 trillion as of end-June 2025, compared to Rs. 2.8 trillion as of end-2024, while net loans stood at Rs. 1. 6 trillion, up from Rs. 1.5 trillion in end-2024. Total assets rose to Rs. 3.6 trillion on a solo basis, up from Rs. 3.3 trillion six months earlier, the bank said.
As of 30 June 2025, the Bank’s Tier I and Total Capital Adequacy Ratios stood at 12% and 16.9%, respectively (end-2024: 10.9% and 16.5%). On a consolidated basis, the ratios were 13.2% and 17.6% (end-2024: 12.6% and 17.7%).
“These ratios reflect all prudential deductions, including those related to the sovereign-backed SOE restructuring, which were fully accounted for, ensuring a conservative and prudent assessment,” the bank said.
The consolidated operating income of the group at the end of 1H 2025 was Rs. 91.8 billion. Consolidated PBT and PAT were Rs. 31.0 billion and Rs. 19.6 billion, respectively. The group’s total deposits reached Rs. 3.2 trillion, while net loans grew to Rs. 1.8 trillion and total assets reached Rs. 3.8 trillion by end-June 2025 on a consolidated basis, the bank reported.
Commenting on the results, People’s Bank Chairman Prof. Narada Fernando said: “We are pleased to report a historic and record performance for 1H, reflecting the sustained momentum since 2024 and the continued progress we have made across multiple fronts. This achievement underscores our strong position as an independent State institution, well-equipped to make meaningful contributions to the Government’s broader agenda of strengthening the national economy.”
“Our focus extends well beyond profitability. We remain firmly committed to advancing financial inclusion, supporting the Small and Medium Enterprise (SME) sector, and uplifting the living standards of all Sri Lankans,” he said.
Prof. Fernando added: “Amidst the ongoing challenges of a recovering macroeconomic environment, we are steadfast in executing our strategic priorities. These include strengthening private sector lending, with a special emphasis on the SME base, fostering innovation, and empowering entrepreneurs, all with the ultimate goal of reinforcing the broader economy. Our vision is to be the nation’s foremost financial services provider, setting the benchmark for excellence in customer service, innovation, and meaningful contributions to national development.”
People’s Bank General Manager/CEO Clive Fonseka said: “I am delighted to announce that 1H 2025 marks the highest-ever performing 1H in People’s Bank’s history. This remarkable achievement reflects the collective dedication, resilience, and strategic agility of our entire team, particularly in the face of a challenging operating environment.”
“Importantly, this record-breaking performance was achieved despite a significant reduction in our exposure to SOEs. The exposure to SOEs declined to 26.5% by the end of 1H 2025, from 42.8% at the end of 1H 2024. Our strategic pivot towards the private sector successfully offset the decline in SOE business volumes, enabling us to mitigate potential negative impacts. This shift clearly demonstrates our strength and resilience as a true commercial bank,” he said.
“We remain fully committed to executing our strategic priorities. While we recognise that external challenges will persist, we are confident in our ability to navigate them with purpose and resolve. Our progress will continue to be driven by the values that define us – resilience, innovation, and an enduring commitment to creating long-term value for all our stakeholders,” Fonseka added.
Commenting on the overall performance, People’s Bank Acting Head of Finance/DGM Commercial Credit Thushari Hewawasam noted that, as of end-June 2025, the group’s asset base reached Rs. 3.8 trillion, reflecting a strong 9.3% growth in the first half of the year. The increase was primarily attributable to Rs. 120.6 billion rise in net loans and advances, complemented by Rs. 300.2 billion growth in the group’s deposit base. She further highlighted that this performance underscored the bank’s strategic emphasis on operational efficiency, digital transformation, and customer-centric initiatives, which have strengthened its competitive position and ability to adapt to emerging challenges.
The bank reported rapid digital banking onboarding, with its digital customer base reaching 3.7 million as of end-June 2025, which was the largest for any financial services provider, the bank claimed.
