People’s Bank, announcing the results for its year ended December 31, 2023 reported a total consolidated operating income and pre-tax profit of LKR 96.8 billion and LKR 19.3 billion, respectively.
Reflecting high interest costs on term deposit funding, due to the high interest rate environment which prevailed during 2022 and early 2023 – and significant interest concessions extended to the customers for the ultimate benefit of the country – saw consolidated net interest income slip to LKR 67.8 billion during the year from LKR 91.0 billion in the year prior. However, the last quarter of the year showed a forward movement on this front as its interest expense continues to normalize with the current interest rate environment. Consolidated net fees & commission income
amounted to LKR 13.9 billion, reflecting a 11.0% growth over 2022 lessextraordinary items during the said prior year. Despite inflation-pushed cost pressures, total consolidated operating expenses rose by only 5.5% to reach LKR 62.2 billion (2022 LKR 59 billion) ultimately reflecting stringent cost control and efficiency improvements which compared well with peers. Total consolidated customers deposits and rupee loans grew by 12.0% and 1.4%, respectively whilst its all currency net loans contracted by 4.0% reflecting both the appreciation of the rupee impact on its foreign currency loan book.
Total consolidated assets stood at LKR 3,208.2 billion at period end (end 2022: LKR 3,133.1 billion). Bank and Group Chairman of People’s Bank, Sujeewa Rajapakse, stated that: “Taking on some of challenges head-on, we have navigated the first phase of the Domestic Debt Optimization program with great success, converted our rupee liquidity stresses to now an all-time high excess, further augmented our regulatory capital amidst limiting circumstances and drive supernormal growth across all our overall digital platforms – all of which whilst continuing to place national interest and serving our customers at the heart of all our decision making ahead of profitability.”
Chief Executive Officer/ General Manager Clive Fonseka stated that: “In our pursuit of driving transformation, we have embarked on a new strategic direction during 2023 which focuses on rebalancing our business model, embracing technology integration, and intensifying the migration towards all our digital platforms. The year ended has witnessed notable success in each of these areas – the core of them being a proactive mindset, characterized by a constant search for innovation and adaptability.”
“Looking ahead, we will further our current path whilst also focusing on further streamlining our operations and enhancing efficiency across all parts of our business.”
