People's Bank posts Rs. 14b PAT

The People's Bank closed 2014 with an impressive performance, attesting that it continues to remain the 'Pulse of the People'. Posting the milestone of Rs 1 trillion in its balance sheet, only the second bank in Sri Lanka to do so, the People's Bank also notched the best profitability for an year end, since its inception in 1961.

Augmenting its balance sheet of Rs 1 trillion, this year's Profit Before Tax increased 67.2% to Rs 17,231 million, while Profit After Tax was pushed upwards by 89.9% to Rs 14,219 million.

The Bank's financial performance for 2014 is impressive. Net Interest Income was Rs 30,118 million, while the Net Interest Margin reached 3.1%, despite the entire banking industry battling the downward pressure exerted on interest rates. Gross Interest Income reached Rs 84,480 million, compared to Rs 110,441 million last year, primarily due to the decline in interest rates, coupled with the downsizing of the pawning portfolio. Interest expense stands at Rs 54,362 million against last year's Rs 73,791 million with the decrease attributed to the cascading impact of declining interest rates and replacing of higher cost deposits with low-cost saving deposits growth.

Gross Loans and Advances reached Rs 685,310 million by the end 2014, an incline of 0.6%. With the permeating global gold crisis impacting the pawning industry significantly from 2013, the Bank was prudent and instituted some dynamics to decrease its exposure which emerged at 16.6% in 2014 of the total Gross Loans, which in 2013 stood at a high of 28.9%. Pawning balance reached Rs 113,946 million indicating a reduction of Rs 83,183 million compared to last year.

Chairman Hemasiri Fernando said, "Possessing one of the largest customer bases in Sri Lanka of over 16 million, the Bank has proved repeatedly that its brand of 'banking by the people, for the people' is the formula to success. We also continue being the most accessible bank in Sri Lanka, possessing the widest branch network of 739 branches and over 3,000 strong ATM network, the largest in the country."