People’s Bank announced its financial results for the year ended 31 December 2024, reporting total consolidated operating income of Rs. 145.1 billion and post-tax profit of Rs. 28.8 billion, reflecting a growth of 49.9% and 152.7%, respectively.
This included the benefit stemming from ISB restructuring which was fairly modest relative to peers.
Consolidated net interest income rose to Rs. 122.9 billion during the year from Rs. 67.8 billion in the same period 2023 - reflecting timely pricing of assets and liabilities in line with changing market interest rates.
As a result, consolidated net interest margins improved to 3.7% in 2024 from 2.1% in 2023. Consolidated net fees and commissions amounted to Rs. 15.3 billion for the year - representing a growth of 10.5% - also a group all-time high.
Total consolidated operating expenses amounted to Rs. 75.7 billion (2023: Rs. 62.2 billion).
Total consolidated customers deposits reached Rs. 2,947.9 billion (end 2023: Rs. 2,745.2 billion) whilst net loans were Rs. 1,665 billion (end 2023: Rs. 1,823.8 billion); being after the settlement of Rs. 262.6 billion in loans granted to a sovereign backed state enterprise by way of treasury bonds.
Excluding the said settlement, net loan growth was close to 5.7%. Total consolidated assets reached Rs. 3,471.7 billion at end 2024 (end 2023: Rs. 3,208.2 billion).
The bank’s total tier I and total capital adequacy ratios were 10.9% and 16.5%, respectively at 31 December 2024 (end 2023: 12.4% and 17.4%) whilst, on a consolidated basis, it was 12.6% and 17.7% (end 2023: 13.7% and 18.2%).
In addition, the bank’s solvency levels were augmented by the Rs. 13.5 billion basel III compliant tier II debt issuance as undertaken during Q4-2024.
People’s Bank Chairperson Prof. Narada Fernando said: “In 2024, the bank made significant strides in several key areas, overcoming numerous challenges, particularly those stemming from the country’s prolonged macroeconomic difficulties. With many of the institution’s internal challenges now addressed, we look toward the future with optimism and a renewed sense of purpose. Our primary goal remains to support the government’s efforts in strengthening the national economy, while maintaining consistent profitability as an independent institution.”
Fernando said that the bank will focus on three key priorities: Innovating to deliver cutting-edge financial solutions, strengthening internal and external collaboration, and promoting financial inclusion for all.
“Ultimately, our vision is to be the leading force in the banking and financial services sector, setting the benchmark for excellence in customer service, innovation, and contributions to national economic development. I would like to take this opportunity to express my sincere gratitude to our shareholders, including the co-operative societies, customers, employees, and all stakeholders for their support and trust.
I extend my special appreciation to the Ministry of Finance and other officials for their support and cooperation extended on many fronts. Together, we have not only overcome challenges but have also built a foundation for long-term resilience and sustainable growth,” Fernando added.
People’s Bank Chief Executive Officer/General Manager Clive Fonseka said: “Amidst unforeseen challenges, our team has once again exemplified extraordinary resilience, adaptability, and an commitment to excellence. The results we’ve achieved are not only the highest in the institution’s history but also a testament to our ability to make meaningful progress despite the many obstacles we’ve encountered along the way.”
“By focusing on enhancing operational efficiency, elevating our customer experience, and making strategic investments in both technology and talent, we have laid the groundwork for sustainable, long-term growth. These efforts have strengthened our foundation, enabling us to swiftly adapt to evolving market conditions, refine our services, and continue delivering exceptional value to our customers and stakeholders.
As we look to 2025 and beyond, we remain resolutely focused on our strategic priorities. While challenges are inevitable, particularly in a recovering macroeconomic environment, we are confident in our ability to navigate them with resilience and precision. By harnessing the full potential of our collective strengths and expertise, we are well-positioned to turn challenges into opportunities.”