Monday Nov 16, 2026
Monday Nov 16, 2026
Monday, 16 November 2026 05:07 - - {{hitsCtrl.values.hits}}
Chairman Chandana Guniyangoda (left) and CEO/GM Clive Fonseka
People’s Bank has delivered a strong financial performance for the nine months ended 30 September 2026, building on its earnings momentum and demonstrating financial resilience in an evolving global and domestic economic environment.
The bank achieved a standalone Profit Before Tax (PBT) of Rs. 52.1 billion, supported by sustained core banking performance, prudent balance sheet management, and disciplined credit and risk management. This performance underscores the strength of the bank’s financial fundamentals and its ability to sustain progress while navigating changing economic and geopolitical conditions.
Strong growth across core income streams reinforced the bank’s earnings momentum during the nine months ended 30 September 2026. Total operating income rose by 18.7% to Rs. 145.1 billion, from Rs. 122.2 billion in the corresponding period of the previous year, while net interest income increased by 21.5% to Rs. 126.2 billion from Rs. 103.9 billion. The bank also strengthened its Net Interest Margin (NIM) to 4.4% from 4.1%, supported by effective asset and liability repricing and disciplined balance sheet management. Together, these improvements highlight the strength of its core banking performance.
Sustained lending momentum was another key feature of the bank’s performance. Gross loans and advances reached Rs. 2.1 trillion, reflecting continued growth in core lending activities. At the same time, total assets stabilised at Rs. 3.9 trillion, demonstrating the bank’s ability to advance its lending business while maintaining overall balance sheet stability.
The bank’s improving capital strength provided further support for its growth momentum during the first nine months of 2026. Supported by sustained profitability and prudent balance sheet management, the Total Capital Adequacy Ratio rose to 17.4% as at 30 September 2026, from 16.5% at the end of 2025, remaining comfortably above the regulatory minimum requirements. Liquidity remained robust, with the Rupee Liquidity Coverage Ratio at 226.5%, reflecting substantial liquidity buffers and continued financial resilience.
Progress in asset quality complemented the bank’s loan portfolio expansion during the first nine months of 2026. The impaired loans (Stage 3) ratio (net) improved to 6.3%, while the Stage 3 provision coverage ratio strengthened to 54.1%. These improvements, achieved alongside continued loan portfolio growth, underscore enhanced recovery efforts, prudent credit risk management and the bank’s commitment to a resilient balance sheet.
People’s Bank’s strong performance momentum extended to the Group during the first nine months of 2026, supported by healthy core banking expansion and improved margins. Group PBT grew by 23.8% to Rs. 59.3 billion, compared with Rs. 47.9 billion in the corresponding period of the previous year, reflecting improved operating performance alongside disciplined cost and risk management.
The Group also sustained its business expansion, with gross loans and advances increasing to Rs. 2.4 trillion and total assets stabilising at Rs. 4.3 trillion. This performance reinforces the Group’s scale and business growth across key segments. Net interest income rose by 24.4% to Rs. 148.6 billion from Rs. 119.5 billion, supported by effective balance sheet repricing and sustained lending activity.
Improved profitability was further supported by a stronger Group Net Interest Margin, which increased to 4.8% from 4.4%, reflecting efficient asset-liability management and improved yields on interest-earning assets. The combined strength of earnings growth, business momentum and financial resilience further reinforces the Group’s strategic position as one of the country’s leading financial institutions.
Leadership Commentary
Chairman Chandana Guniyangoda highlighted People’s Bank’s continued resilience, financial strength and stability amid an evolving global and domestic economic environment. He observed that Sri Lanka’s economy has sustained its recovery momentum, supported by improved macroeconomic stability and growth across key sectors, even as geopolitical tensions, global uncertainties and emerging inflationary pressures continue to pose challenges.
The Chairman stressed that the bank’s performance is underpinned by a continued focus on stronger financial fundamentals, greater operational efficiency, sound governance and prudent risk management. He reaffirmed People’s Bank’s commitment to advancing national economic priorities by facilitating productive economic activity, supporting businesses and promoting financial inclusion, thereby contributing to sustainable and inclusive economic growth.
The CEO/General Manager Clive Fonseka described the bank’s performance as a demonstration of its sustained positive momentum, driven by robust core income generation, improved margins, stronger asset quality and a stable balance sheet. He emphasised that strong capital and liquidity positions, disciplined financial management and continued investments in digital banking, customer experience and operational efficiency position the bank well for sustainable growth.
Fonseka also drew attention to the bank’s achievement of the Overall Gold Award at the National Business Excellence Awards 2026, alongside top honours in the Extra-large, Local Market Reach and Banking Sector categories. He highlighted these accolades as recognition of the bank’s commitment to excellence in governance, innovation, customer service and overall business performance, as well as the dedication and professionalism of its employees. He reaffirmed the bank’s determination to build on this success, further strengthen its market position and deliver greater value to customers and stakeholders.
In recognition of the bank’s consistent and robust performance, Fitch Ratings recently upgraded People’s Bank’s National Long-Term Rating by two notches to AA+(lka), with a Stable Outlook. Following this upgrade, People’s Bank now shares the highest National Long-Term Rating among domestic commercial banks, placing it ahead of all private sector commercial banks in Sri Lanka on Fitch’s national rating scale and reaffirming its position among the country’s strongest and most trusted financial institutions.
The significance of this milestone is further underscored by the fact that this marks only the second occasion in the bank’s history that it has received a two-notch rating upgrade, with the first such upgrade having occurred in 2010.
