People's Bank records highest-ever Group PBT of Rs. 21 b

The People's Bank surpassed all previous records to post a PBT figure of Rs. 21 b in FY 2011 – the highest-ever recorded in the banking industry to-date.

W. Karunajeewa, Chairman, People's Bank

This includes a PBT of Rs. 15.3 b recorded by People's Bank – which delivered a 75 percent growth over last year, emerging as one of the most profitable banks in Sri Lanka for FY 2011.The Bank experienced a substantial increase in its gross interest income which expanded by 10 percent while interest expenses was 3.5 percent during the period under review. Stringent cost management initiatives and budgetary control enabled the Bank to reduce its overall over heads by 4.5 percent over 2010.

This, along with growth enabled the Bank to record a Profit After Tax (PAT) of Rs. 10.2 b – a 95 percent growth over the previous year's figure of Rs. 5.2 b.

The Bank's ability to maintain a healthy mix of loans and advances and investments enabled it to enhance its asset quality during the year under review, recording Rs. 663 b, which was an increase of 21 percent over the previous year. The favourable macro-economic conditions that prevailed during the year contributed towards this achievement. The healthy growth experienced in commercial and housing loans, pawning advances and state-owned enterprises inter-alia resulted in the expansion of total loans and advances to Rs. 478 b from last year's figure of Rs. 372 b an increase of 29 percent over the previous year.

The pawning business – which is a capital efficient business segment continued to propel profitability of the Bank by emerging as an integral segment of the Bank's financial cycle, particularly for those stakeholders involved in agriculture, fisheries , and micro, small and medium scale entrepreneurial community in the country. Having pioneered the concept of pawning in 1963, the Bank has today emerged as the undisputed leader and most sought-after financial services provider in the pawning sector through which the Bank caters to a significant customer base via its islandwide branch network.

Directly influenced by the increase in rupee savings, the Bank's overall deposits rose to Rs. 540 b during the year, an increase of 16.8 percent over the previous year's figure of Rs. 462 b.

The Fixed Deposits segment which represents a significant portion of the deposit portfolio also grew by 18 percent in 2010 to boost the overall deposit status.

The increasing contribution made by People's Bank by way of taxes, levies and dividends is aptly reflected in the amount paid out during 2011 which stands at Rs. 12.5 b – an increase of 25 percent when compared to the Rs. 9.9 b paid out in 2010.