• People’s Bank maintains non-personnel operating expenses

People’s Bank announced that non-personnel operating expenses were maintained at around Rs. 11.6 billion without any increase during its nine-month period ended 30 September 2021. Commenting on the results, People’s Bank Chairman Sujeewa Rajapakse stated: “We are pleased with the role and contribution of the institution more so during a time of extraordinary challenge, change, and need. We measure our success not by a typical top or bottom line, but by our contribution to safeguard the pandemic-stricken economy and our role to assist in its revival. “It also demonstrates our efficiency and productivity even during the most challenging circumstances, thereby debunking any myth to the contrary. Above all, with our job being far from over, we remain committed to continuing to play our part to help the country navigate through these unchartered waters.” The bank also reported an asset growth and deposit growth of Rs. 349.7 billion and Rs. 276.6 billion, respectively – a record-high growth by 15.7% and 15.1%, respectively, during the said period. Growth in net loans and investment in Treasury securities were Rs. 167.4 billion and Rs. 191.4 billion, respectively. On a standalone basis, the bank accounted for close to 20% of the banking sector’s asset and net loan growth during the 21-month period ended 30 September 2021, which is a feat self-attesting to the contribution made by the institution to the national cause and the Government. As of 30 September 2021, close to 50% of the bank’s gross loans were to the State and other state-owned enterprises. During the said 21-month period, the bank introduced multiple loan schemes in view of supporting its customers. These included, amongst other, over Rs. 60 billion in credit to support small and medium-scale enterprises (SMEs), over Rs. 160.1 billion in home loans to over 9,000 customers, over Rs. 6 billion to retired and disabled officers of armed forces, and over Rs. 560 million to artists of varying disciplines. In addition, the bank extended Rs. 750 million to support the development of a techno park in Galle, over Rs. 485 million to support women entrepreneurship, and over Rs. 260 million to university students to purchase laptops. Looking at some of the highlights for the nine-month period in 2021, net interest income rose by 38.9% whilst total operating income grew by close to 30%. Impairment charges rose by 10.7% whilst non-personnel operating expenses were maintained at around Rs. 11.6 billion without any increase. The bank’s gross stage three loans, as a function of total gross loans, was close to 8.1% at 30 September 2021 whilst its gross non-performing loans excluding SOEs was 6.1%. Total taxes and dividends to the government during the said period was Rs. 9.7 billion. The bank’s Tier 1 and total capital adequacy were 10.2% and 15.5%, respectively, at end-September 2021, compared with a minimum 8.5% and 12.5%, respectively. People’s Bank Chief Executive Officer (CEO) and General Manager (GM) Ranjith Kodituwakku stated: “The year to date period has put to test our continued commitment, our continued access, our digital capabilities, our customer centricity, and our ultimate ability to rise to our national duty. Notwithstanding the many challenges, including those beyond our reasonable control as seen in the recent past, our delivery remains testimony to our strength, resilience, and collective capability. Fully aware of the many challenges which lie ahead, we look forward to the future with a great degree of hope and optimism.”