People’s Bank has reported a profit-after-tax (PAT) of Rs. 6.4 billion for the third quarter of 2024, despite the challenging macroeconomic environment in Sri Lanka. For the nine-month period ending 30 September 2024, the bank posted a total consolidated operating income of Rs. 75.4 billion. Excluding the impact of exceptional adjustments due to ongoing debt restructuring initiatives, the bank’s normalised figures show a significant growth of 50.0% in operating income and a 193.6% increase in PAT, reaching Rs. 101.5 billion and Rs. 20.2 billion, respectively.
The bank’s consolidated net interest income rose sharply to Rs. 60.4 billion, up from Rs. 44.6 billion in the same period last year, while net interest margins improved to 3.2% from 2.1%, reflecting the reduction in term deposit funding costs. Additionally, consolidated net fees and commissions grew by 25.1%, amounting to Rs. 11.3 billion.
Total operating expenses for the period stood at Rs. 52.4 billion, compared to Rs. 45.9 billion in 2023. Customer deposits grew to Rs. 2,933.2 billion, while net loans increased to Rs. 1,848.5 billion, continuing a positive trend in assets, which reached Rs. 3,396 billion by the end of September.
The bank’s capital adequacy ratios remained robust, with Tier I and total capital ratios at 11.1% and 16.9%, respectively. On a consolidated basis, these ratios were 12.6% and 17.7%. The bank’s solvency was further strengthened by a recent Rs. 13.5 billion Basel III-compliant Tier II debt issuance.
CEO/GM Clive Fonseka highlighted the bank’s progress despite the country’s macroeconomic challenges and expressed confidence in overcoming remaining obstacles. Finance Head Azzam A. Ahamat noted that the bank is focused on strategic priorities, confident in navigating challenges with the support of its stakeholders.
With strong financial performance and a steady outlook, People’s Bank continues to demonstrate resilience and growth, positioning itself for a strong finish to the year.