Financials: People’s Bank posts PBT of Rs 16.6 b

People’s Bank recorded a standalone Profit Before Tax (PBT) of Rs 16.6 billion during the quarter ended on 31 March, supported by continued growth across core income streams. 

Total operating income increased by 13.2% to Rs 46.1 billion compared to Rs 40.7 billion in the corresponding period of the previous year, while net interest income grew by 17.5% to Rs 40.1 billion from Rs 34.1 billion. This performance was further supported by improved margin expansion, with the Net Interest Margin (NIM) increasing to 4.3% from 4.1%, driven by effective repricing strategies and disciplined asset-liability management.

The bank’s balance sheet continued to demonstrate steady expansion and financial stability, with total assets reaching Rs 3.8 trillion, customer deposits increasing to Rs 3.3 trillion, and net loans and advances growing to Rs 1.8 trillion. During the quarter, the bank further strengthened its capital position through the successful completion of Sri Lanka’s largest Basel III compliant Tier 2 debenture issuance, raising Rs 25.0 billion and reflecting strong investor confidence in the bank’s long-term stability and financial strength.

This strengthened capital base contributed to a further improvement in the bank’s Total Capital Adequacy Ratio, which increased to 17.9% from 16.5% recorded at the end of 2025, remaining comfortably above regulatory requirements. The bank also maintained a robust liquidity position, with a Rupee Liquidity Coverage Ratio of 260.0%, underscoring its strong financial resilience.

Further strengthening the bank’s financial profile, asset quality indicators continued to improve during the quarter. The impaired loans (Stage 3) ratio improved to 7.2% from 7.7%, while the Stage 3 provision coverage ratio strengthened to 50.0% from 48.4%, reflecting enhanced recovery efforts and prudent credit risk management.

At Group level, People’s Bank continued its strong growth momentum during the quarter, supported by healthy core banking expansion and improved margin performance. The group reported a Profit Before Tax of Rs 20.0 billion compared to Rs 17.7 billion in the corresponding period of the previous year, reflecting a 13.5% growth driven by improved operating performance and disciplined cost and risk management.

The group’s balance sheet continued to expand steadily, with total assets reaching Rs 4.2 trillion while net loans advanced to Rs 2.1 trillion, reinforcing the group’s strengthened scale and business growth across key segments. Net interest income increased significantly to Rs 47.4 billion from Rs 38.6 billion, recording a 22.9% growth supported by effective balance sheet repricing and sustained lending activity.

The group also recorded an improvement in Net Interest Margin, which increased to 4.6% from 4.4%, reflecting efficient asset-liability management and improved yields on interest-earning assets. Overall, the group maintained strong operational momentum and financial resilience during the quarter, further reinforcing its strategic position as one of the country’s leading financial institutions.

Commenting on the Q1 – 2026 performance, Chairperson Prof Narada Fernando noted that the results reflect People’s Bank’s continued resilience and stability during the quarter ended 31 March, despite a challenging global environment marked by heightened geopolitical tensions and economic uncertainty. He emphasised that the bank’s performance reflects its strong fundamentals, prudent governance framework, and disciplined approach to risk management, which have enabled it to maintain stability while strengthening key financial indicators.

He further highlighted the bank’s pivotal role in supporting national economic priorities, including financial inclusion, MSME development, and broader economic recovery efforts, reaffirming its position as a key institution in driving sustainable national development.

Chief Executive Officer/General Manager Clive Fonseka described the quarter’s performance as a strong demonstration of the bank’s operational resilience and financial strength. He highlighted that the bank’s strong core income generation, improving margins, enhanced asset quality indicators, and continued balance sheet expansion have further strengthened its financial position amidst evolving global and domestic challenges.

Fonseka further stated that the successful Rs 25.0 billion Basel III compliant Tier 2 debenture issuance, together with the bank’s strong capital and liquidity buffers, reflects growing investor confidence and reinforces the bank’s long-term strategic positioning. He added that continued investments in digital banking, customer experience, operational efficiency, and inclusive financial solutions will further strengthen the bank’s competitiveness and support sustainable growth in the periods ahead.

Beyond financial performance, People’s Bank continued to make meaningful contributions towards the country’s economic recovery and social development initiatives during the quarter. The bank contributed Rs 11.9 billion in taxes to the Government while also donating Rs 300 million towards the Rebuild Sri Lanka initiative. Through continued support for financial inclusion, digital banking adoption, and economic empowerment initiatives, People’s Bank remains committed to serving as a trusted partner in Sri Lanka’s sustainable economic progress.

Source: The morning