September 02, Colombo (LNW): People’s Bank has announced its financial results for the first half of 2024, revealing a consolidated operating income of Rs. 44.6 billion and a post-tax profit of Rs. 3.2 billion.
When excluding exceptional adjustments, which were made in light of current macroeconomic conditions, the figures on a normalised basis stand at Rs. 62.6 billion and Rs. 12.7 billion, respectively, marking increases of 29.9 per cent and 104.2 per cent.
The bank’s consolidated net interest income increased to Rs. 35.0 billion, up from Rs. 31.4 billion in the same period last year.
On a normalised basis, the net interest margins improved to 3.2 per cent from 2.1 per cent, reflecting a decrease in term deposit costs.
Net fees and commissions grew by 19.3 per cent to Rs. 7.4 billion, while total consolidated operating expenses rose to Rs. 34.6 billion from Rs. 30.2 billion in 2023.
Customer deposits reached Rs. 2,885.6 billion by the end of June 2024, up from Rs. 2,745.2 billion at the end of 2023. Net loans also increased to Rs. 1,866.8 billion, compared to Rs. 1,823.8 billion at the end of 2023.
The impaired loan ratio improved relative to the previous year. Total consolidated assets rose to Rs. 3,364.1 billion from Rs. 3,208.2 billion.
The bank’s capital adequacy ratios were 11.5 per cent for Tier I and 15.9 per cent for total capital as of June 30, 2024, compared to 12.4 per cent and 17.4 per cent at the end of 2023.
On a consolidated basis, these ratios stood at 12.8 per cent and 16.8 per cent, respectively, down from 13.7 per cent and 18.2 per cent at the end of the previous year. Despite this, the bank’s solvency levels remain robust.
People’s Bank Chairman Sujeewa Rajapakse praised the institution’s resilience and growth potential. He stated, “The Bank continues to demonstrate its strength and capacity for growth across all core operational metrics. As we navigate the ongoing challenges of a recovering macroeconomic environment, our focus remains on innovation, collaboration, and advancing all aspects of our business.”
Chief Executive Officer/General Manager Clive Fonseka added, “The results for the first half of the year reflect our ability to progress despite significant difficulties. By focusing on operational efficiency, enhancing customer experience, and investing in technology and talent, we are well-positioned for sustainable long-term growth. We remain dedicated to driving innovation and transformative change to maintain our leadership in the industry.”
