People’s Bank records bottom line and balance sheet growth

0
23

The People’s Bank reported a consolidated total operating income of LKR 110.7 billion and total operating expenses amounting to LKR 50.5 billion for the financial year 2021, which represents an increase of 21.9% and 14.9%respectively over 2020. The Bank’s consolidated pre-tax and post-tax profits amounted to LKR 37.2 billion and LKR 28.1 billion; representing a 51.1% and 74.6% growth. 

On a Bank stand alone basis, the Bank’s PBT and PAT figures were LKR 30.4 billion and LKR 23.7 billion, respectively – up 43.2% and 67.3% over 2020. Income growth primarily stemmed from net interest income, which accounted for close to 90.0% of total operating income and grew by 30.2% in line with the Bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4% to reach LKR 9.0 billion; reflecting People’s Bank’s efforts to improve its non-funded income sources. Underscoring the bank’s operational efficiency Bank’s cost to income ratio has shown a marked improvement at 51.1% in 2021 as compared with 54.3% in 2020 and 61.8%in 2019.

In 2021 the Bank’s consolidated loan book expanded by 12.1% to reach LKR 1,990 billion while its consolidated deposit base grew by 12.1% to LKR 2,168.7 billion. 

Total consolidated taxes and dividends to the Government of Sri Lanka totalled LKR 20.4 billion during 2021, representing a 25.1% growth over LKR 16.3 billion in 2020. Its Consolidated Tier I and Total Capital Adequacy was 13.4% and 17.9%, respectively at the end 2021 (end 2020: 10.7% and 15.6%). On a Bank standalone basis, these were 12.6% and 17.8%, respectively (2020: 9.5% and 15.5%). All other regulatory ratios were all maintained well above the minimum requirement.