New initiatives undertaken over the last several years are now yielding significant positive results. Amongst other, triples market share in inward worker remittances
People’s Bank today announced the results for its nine-months period ended September 30, 2023 with total consolidated operating income and pre-tax profit was LKR 67.6 billion and LKR 11.4 billion, respectively.
Due to the higher cost of term deposit funding – which stemmed from the high interest rate environment which prevailed during much of 2022 – consolidated net interest income slipped to LKR 44.6 billion during the nine-months ended September 30, 2023. Consolidated net fees & commission income amounted to LKR 10.8 billion which, excluding one off items during 9M-22, represented a near 9.0% growth on a like-for-like basis.
Reflecting rupee depreciation and inflation driven cost pressures, much of which originated since Q222, consolidated total operating expenses rose by 14.7% to reach LKR 45.9 billion. Relative to such upward cost pressures, this compared well also reflecting Bank and Group wide efforts for greater cost control and efficiency improvement at every instance so possible.
Total consolidated customers deposits grew to reach LKR 2,652.6 billion – i.e., by 8.3%, whilst consolidated net loans contracted by 5.4% to LKR 1,812.1 billion. This reflected both the impact of the rupee appreciation on its foreign currency loan-book relative to end 2022 levels and, more notably, the cautionary approach adopted by the Bank when extending new credit considering the yet stressed macro-circumstances. Total consolidated assets stood at LKR 3,131.7 billion as at September 30, 2023
The Bank’s Tier I and Total Capital Adequacy Ratios were 11.6% and 15.7%, respectively as at September 30, 2023 whilst, on a consolidated basis, it was 13.1% and 16.8%, respectively. The Bank’s solvency levels continue to remain sound ultimately showcasing efforts consistently made since the onset of Basel III on July 1, 2017. Further efforts to bolster its regulatory capital are currently ongoing. In addition, the Bank has successfully met all its core regulatory measures during the said period including, amongst other, its liquidity ratios which reached new highs across both rupee and foreign currency.