Saturday May 11, 2024
Saturday May 11, 2024
Monday, 7 March 2022 03:25 - - {{hitsCtrl.values.hits}}
Chairman Sujeewa Rajapakse (left) and CEO and General Manager Ranjith Kodituwakku
People’s Bank has announced a consolidated total operating income of Rs. 110.7 billion and total operating expenses amounting to Rs. 50.5 billion in 2021 reflecting a growth of 21.9% and 14.9% respectively over 2020.
Consolidated pre-tax and post-tax profits amounted to Rs. 37.2 billion and Rs. 28.1 billion; representing a 51.1% and 74.6% growth.
On a Bank standalone basis, figures were Rs. 30.4 billion and Rs. 23.7 billion, respectively - up 43.2% and 67.3% over 2020.
Income growth primarily stemmed from net interest income, which accounted for close to 90.0% of total operating income and grew by 30.2% in line with the Bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4% to reach Rs. 9 billion; reflecting the Bank efforts to improve its non-funded income sources.
Expense growth mostly related to direct business growth. Relative to 2019, the Bank’s cost to income ratio has shown a marked improvement at 51.1% in 2021 as compared with 54.3% in 2020 and 61.8% in 2019. Bank-wide impairment charges rose reflecting macro-economic stresses as seen throughout the industry.
During the year, the Bank invested in rural development, supported small and medium-sized enterprises (SMEs) and encouraged women entrepreneurship. At end 2021, it extended over Rs. 63 billion to SMEs through various loan initiatives; which included close to Rs. 1.9 billion through its own scheme to help revive businesses across agriculture, information technology, logistics, manufacturing, tea and tourism.
In conjunction with the Small Holder Agri-Business Partnership (SAP), introduced a low-interest credit scheme for 5,000 farmers with an initial provision of Rs. 1 billion. To support the production of local fertiliser, the Bank introduced the Sarabhoomi loan scheme whilst to promote women entrepreneurship, it extended Rs. 533.5 million. The Bank also introduced additional loan schemes to assist self-employment in the agricultural and handicrafts spaces.
To support the country’s investment in information technology, the Bank committed Rs. 6 billion of which Rs. 750 million was already drawn down.
From a Personal Loan perspective, in its effort to uplift the housing and construction sector, the Bank granted over 10,000 home loan facilities amounting to over Rs. 185.8 billion at end 2021.
In addition, by end 2021, it had disbursed over Rs. 5.5 billion to retired disabled officers of armed forces and over Rs. 68.5 billion to government pensioners.
To assist artists and related professionals, the Bank disbursed over Rs. 550 million, whilst to assist University Students and Teachers, the Bank designed laptop loan schemes through which a total of Rs. 350.5 million was extended throughout the year. Medical students at state universities were similarly offered personal loan facilities.
The Bank’s consolidated loan book expanded by 12.1% to reach Rs. 1,990 billion at end 2021. The Bank’s stage 3 loans were, however, at 4.3% (2020: 4.5%).
In addition, the Bank undertook approximately Rs. 453 billion treasury bond conversions during the said two-year period. Growth in its consolidated deposits was 12.1% to Rs. 2,168.7 billion.
Total consolidated taxes and dividends to the Government of Sri Lanka totalled Rs. 20.4 billion during 2021, representing a 25.1% growth over Rs. 16.3 billion in 2020.
Its Consolidated Tier I and Total Capital Adequacy was 13.4% and 17.9%, respectively at end 2021 (end 2020: 10.7% and 15.6%). On a Bank standalone basis, these were 12.6% and 17.8%, respectively (2020: 9.5% and 15.5%); either of which not institutional all times highs but also amongst the highest in the industry. All other regulatory ratios were all maintained well above the minimum requirement.
People’s Bank Chairman Sujeewa Rajapakse said: “We are very pleased with the results of the Bank more so as attained during unseen like before circumstances. As a service provider, the last two years have put our promise and our ability to deliver to the ultimate test.
As a national institution, we don’t measure our success by a typical top line or bottom line but by our national value added - with our results both from a quantitative and qualitative perspective self-attesting to our resilience in these difficult times and overall performance including, most notably, our productivity and efficiency.
All the above said, our job is far from over. Not complacent with any of our successes, we remain focused and fully committed to the Government economic revival plan. Mindful of the challenges which lie ahead, we look forward with a great degree of optimism. Together, we can.”
“On behalf of the Board of Directors, I take the opportunity to thank His Excellency the President, the Honourable Prime Minister and the Honourable Minister of Finance for their leadership in these difficult times. I also extend my gratitude to the Governor of Central Bank, the Secretary to the President and the Secretary to the Treasury for their support and guidance on all matters of a related nature.
Importantly, to all our customers and all employees both present and former - thank you. The Bank’s success is undoubtedly yours. Your continued trust and confidence in the Institution has not only enabled us to serve the country in a manner previously unseen but also has helped us distinguish ourselves in the Banking and Financial Services space,” Rajapakse added.
CEO and General Manager Ranjith Kodituwakku said: “If one thought 2020 was challenging, 2021 was at a different level. Operationally, it continued to test our commitment, our discipline, our resolve, our strength and, importantly, our technological capabilities. If anything, the pandemic has expedited all things touchless, all things remote and all things digital.
So, we used 2021 to focus on our digital customer on-boarding efforts, introduce new solutions to help our customers, expand our overall digital footprint, enhance our brand value and forge new relationships, all of which ultimately led and will continue to lead to enhanced performance and delivery. Further improving our productivity and cost efficiency is a key aspect of our focus going forward, along with completing several measures already in progress to enhance the safety and stability of the institution.”
He continued: “2022 will be a defining year; we look forward to it with resolve, hope and optimism. I take the opportunity to thank all our customers and other stakeholders including our service providers for your trust and confidence in us. We look forward to your continued support.”
With a view to bringing the benefits of digitalisation to the entire nation, People’s Bank embarked on a pioneering digital transformation journey in 2015. Since then, a host of diversified digital banking solutions have been launched that deliver enhanced convenience, speed and efficiency to customers at every point in their interactions with the Bank.
People’s Bank is also the first and only bank in Sri Lanka to be accredited with the ISO/IEC 27001:2013 certification, the highest international accreditation for information protection, and security. Moreover, People’s Bank prides itself in being at the forefront of facilitating digital financial services penetration into the rural hinterlands of the country and has recorded unmatched levels of success in supporting the Nation’s evolution into a digital society.
