Group profit before tax exceeds Rs 21 billion
Notching a host of record breaking numbers, People’s Bank closed 2014 with an impressive performance, posting the milestone of Rs 1 trillion in its balance sheet, only the second bank in Sri Lanka to do so.
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 inclined 67.2% to stand at Rs 17,231 mn, while Profit After Tax was pushed upwards by an impressive 89.9% displayed at Rs 14,219 mn. The Bank’s financial performance for 2014 is unequivocally impressive. Net Interest Income is posted at Rs 30,118 mn, 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 mn, compared to Rs 110,441 mn last year, primarily due to this decline in interest rates, coupled with the downsizing of the pawning portfolio. Interest Expense stands at Rs 54,362 Mn against last year’s.
Rs 73,791 mn with the decrease attributed to the cascading impacts of declining interest rates and replacing of higher cost deposits with low cost saving deposits growth. Observing the details of the impressive Rs 1 Tn balance sheet, Gross Loans and Advances reached Rs 685,310 Mn by end 2014, indicating an incline of 0.6%. With the permeating global gold crisis impacting the pawning industry significantly from 2013 onwards, 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 Mn indicating a reduction of Rs 83,183 Mn in comparison to last year. The Bank focused emphatically on broadening its lending portfolio, heralding an increase to 87,026 Mn in lending to other customers.
With probably the country’s largest savings base now exceeding Rs 318 Bn with increasing customer confidence, Deposits reached Rs 793,342 Mn indicating a 4.1% improvement over 2013. This was due to the Bank taking advantage of the low interest rate regime and aggressive marketing and promotional campaigns aimed at mobilizing low cost deposits. Having a commendable CASA ratio of 46.3% , the Bank’s Saving Deposits grew by Rs 62,967 Mn, although Time Deposits declined by
Rs 42,945 Mn. Advances to Deposits ratio is detailed at 86.4% for end 2014.
Chairman Hemasiri Fernando said the Bank has proven repeatedly that its unique brand of ‘banking by the people, for the people’ is the formula to its success. “We also continue being the most accessible bank in Sri Lanka, possessing the widest branch network of 739 branches and in excess of 3,000 strong ATM network, the largest in the country.
But Fernando adds that the Bank must continue to foster its stringent compliance culture, as well as that unrelenting focus on ethics, transparency and accountability.
“We have earned a rating of AA+ by Fitch Rating, which proves that we are a stable and progressive bank. We have also showcased our leadership prowess in an intensely competitive banking environment with the results you are seeing today and also the continuous progressive initiatives the Bank introduces to optimise performance and build sustainable relationships with our stakeholders.”
CEO and General Manager N. Vasantha Kumar said “Being a state owned bank, we have an ingrained responsibility to ensure that our stakeholders’ trust and confidence is consistent, strong and enduring. This means, that our focus should not only centered on a quantitative sense, though important, as seen in our impressive results, but also in the qualitative dynamics we continue to infuse through the decisions we make. Whatever we do, the impact on our stakeholders must be positive.” www.dailynews.lk
Notching a host of record breaking numbers, People’s Bank closed 2014 with an impressive performance, posting the milestone of Rs 1 trillion in its balance sheet, only the second bank in Sri Lanka to do so.
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 inclined 67.2% to stand at Rs 17,231 mn, while Profit After Tax was pushed upwards by an impressive 89.9% displayed at Rs 14,219 mn. The Bank’s financial performance for 2014 is unequivocally impressive. Net Interest Income is posted at Rs 30,118 mn, 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 mn, compared to Rs 110,441 mn last year, primarily due to this decline in interest rates, coupled with the downsizing of the pawning portfolio. Interest Expense stands at Rs 54,362 Mn against last year’s.
Rs 73,791 mn with the decrease attributed to the cascading impacts of declining interest rates and replacing of higher cost deposits with low cost saving deposits growth. Observing the details of the impressive Rs 1 Tn balance sheet, Gross Loans and Advances reached Rs 685,310 Mn by end 2014, indicating an incline of 0.6%. With the permeating global gold crisis impacting the pawning industry significantly from 2013 onwards, 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 Mn indicating a reduction of Rs 83,183 Mn in comparison to last year. The Bank focused emphatically on broadening its lending portfolio, heralding an increase to 87,026 Mn in lending to other customers.
With probably the country’s largest savings base now exceeding Rs 318 Bn with increasing customer confidence, Deposits reached Rs 793,342 Mn indicating a 4.1% improvement over 2013. This was due to the Bank taking advantage of the low interest rate regime and aggressive marketing and promotional campaigns aimed at mobilizing low cost deposits. Having a commendable CASA ratio of 46.3% , the Bank’s Saving Deposits grew by Rs 62,967 Mn, although Time Deposits declined by
Rs 42,945 Mn. Advances to Deposits ratio is detailed at 86.4% for end 2014.
Chairman Hemasiri Fernando said the Bank has proven repeatedly that its unique brand of ‘banking by the people, for the people’ is the formula to its success. “We also continue being the most accessible bank in Sri Lanka, possessing the widest branch network of 739 branches and in excess of 3,000 strong ATM network, the largest in the country.
But Fernando adds that the Bank must continue to foster its stringent compliance culture, as well as that unrelenting focus on ethics, transparency and accountability.
“We have earned a rating of AA+ by Fitch Rating, which proves that we are a stable and progressive bank. We have also showcased our leadership prowess in an intensely competitive banking environment with the results you are seeing today and also the continuous progressive initiatives the Bank introduces to optimise performance and build sustainable relationships with our stakeholders.”
CEO and General Manager N. Vasantha Kumar said “Being a state owned bank, we have an ingrained responsibility to ensure that our stakeholders’ trust and confidence is consistent, strong and enduring. This means, that our focus should not only centered on a quantitative sense, though important, as seen in our impressive results, but also in the qualitative dynamics we continue to infuse through the decisions we make. Whatever we do, the impact on our stakeholders must be positive.” www.dailynews.lk
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