People's Bank Group posts Rs 12.6 b PAT

The People's Bank posted phenomenal financial results by end 2015, posting 13.3% YoY growth in the highest ever Profit Before Tax of Rs 19.5 bn. Group PBT also experienced 11.5% growth, reaching Rs 24.1 bn in 2015, compared to Rs 21.6 bn in 2014.

Profit After Tax for 2015, was Rs 12.6 bn. People's Bank continued its formidable status of having the Second largest deposit base in the country, observing a growth of 13.3% in its total deposit portfolio amounting to Rs 899.2 bn, of which the local currency savings deposit base saw an incline of 17.1% to a total of Rs 356.7 bn. Aligned with this, the CASA ratio increased to 47.8%.

The commendable results are further compounded with the Bank's Net Interest Income increasing to Rs 43.7 bn from Rs 30.1 bn in 2014, with a YoY growth of an impressive 45%, while total loans also gained significant upward momentum to Rs 829.2 bn, increasing by 21%.

The Bank expanded its balance sheet by Rs 150 bn to reach Rs 1.2 tn with a percentage of 14.6, reiterating its focused strategies in the results-oriented culture it has mooted. Having always remained cognisant in adhering to a stringent risk management framework, the best practices infused into the Bank's astute management of credit risk is well reflected in the overall improvement observed in asset quality and the gross NPL ratio of 2.4%, positioned well below industry average of 3.2%.

ROA is 1.8 % and ROE is 27.1 %, affirming the Bank's well managed strategies that form the foundation for a strong, stable and sustainable custodian of public funds.

There however has been a palpable change in the way People's Bank has been doing business from 2015, which Chairman Hemasiri Fernando states is the reason for the impressive financial results the Bank he helms, has reported. "2015 qualifies to be termed, 'Business as unusual' for People's Bank, as we did not overlook our regular business matters at the expense of strategy development nor due to the volatility that prevailed for most of the year. This is the reason we have posted such good results, including the best profits to-date," he said.