People’s Bank Reports a Pre-tax Profit of Rs. 17.7 Billion for the First Quarter of 2025
- Gross Income: The consolidated gross income for this quarter alone exceeded Rs. 100 billion.
- Profitability: The group reported the highest after-tax profit (for a quarter) so far, at Rs. 11.0 billion.
- Balance Sheet Growth: As at March 31, 2025, total consolidated assets, deposits, and net loans stood at Rs. 3.6 trillion, Rs. 3.1 trillion, and Rs. 1.7 trillion respectively.
- Liquidity: The institution continued to maintain its highest-ever recorded liquidity coverage, with all currency and LKR liquidity coverage ratios exceeding 282.9% and 340.3%, respectively.
- Strong Capital Adequacy: The total consolidated capital adequacy ratio strengthened to 17%, while on a standalone basis it was 16.5%. In addition, Common Equity Tier 1 capital ratios were 11.8% and 10.5%, respectively.
- Digitalization Leader: As of March 31, 2025, the institution continued to maintain the largest number of digital customers among financial service providers in the country, growing the number to 3.3 million.
People’s Bank, Sri Lanka’s leading financial services provider, released its financial results for the quarter ended March 31, 2025, recording a total consolidated operating income of Rs. 45.1 billion and an after-tax profit of Rs. 11.0 billion, reflecting growth rates of 120.8% and 347.2%, respectively.
Compared to the consolidated net interest income of Rs. 16.1 billion earned in the first quarter of 2024, this value rose to Rs. 38.6 billion in the first quarter of 2025, reflecting the re-pricing of assets and liabilities in line with changing market interest rates. As a result, the consolidated net interest margin increased from 2% in 2024 to 4.3% in 2025. The group also reported its highest-ever consolidated net fee and commission income of Rs. 4.5 billion for the relevant quarter in 2025, a growth of 20.6%. Total consolidated operating expenses amounted to Rs. 19.9 billion (2024: Rs. 17.6 billion).
Total consolidated customer deposits amounted to Rs. 3,106.5 billion (end 2024: Rs. 2,947.9 billion), while net loans stood at Rs. 1,689.4 billion (end 2024: Rs. 1,665 billion). Total consolidated assets increased to Rs. 3,648.7 billion (end 2024: Rs. 3,471.7 billion).
As at March 31, 2025, the bank’s standalone and total capital adequacy ratios (Tier 1 and Total) were 11.0% and 16.5%, respectively (end 2024: 10.9% and 16.5%), while on a consolidated basis these were 12.2% and 17.0% (end 2024: 12.6% and 17.7%). To clarify further, the aforementioned values are after taking into account all prudent provisioning for 2024, including specific provisions for restructured loans to state-owned enterprises with sovereign backing. Additionally, the bank’s capacity to shoulder liabilities was further strengthened during the fourth quarter of 2024 through the issuance of Rs. 13.5 billion in Basel III-compliant Tier 2 debt.
Commenting on the group’s results, People’s Bank Chairman Professor Narada Fernando stated:
“We are extremely pleased with the results achieved during the first quarter. The sustained progress across various sectors in 2024 and our growing commitment to sustainable goals are clearly reflected here. Within the core banking sector, the notable progress we have made in stabilizing and normalizing previously stressed sectors internally is significant. As many of these institutional challenges have now been successfully and effectively resolved, we are prepared to make a meaningful contribution to the government’s broad plan to strengthen the national economy, continuing our trajectory of strong and stable profitability as a robust, independent state institution.
Our commitment to move forward with several strategic priorities is demonstrated by our approach amidst the complexities of the evolving macroeconomic environment. Our first strategy is to drive innovation across all areas of our business to ensure we remain at the forefront of providing cutting-edge financial solutions. Secondly, we aim to strengthen cooperation within the institution and with external partners, fostering a more integrated and agile approach to problem-solving. Thirdly, we continue to promote financial inclusivity, ensuring that all segments of society have ample opportunity to participate in and benefit from economic activities.
Ultimately, our vision is to become the foremost financial services provider in the country, setting a benchmark for excellence in customer service, innovation, and contribution to national economic development. By focusing on our long-term goals and building strong partnerships at every level, we are confident that this vision can be realized without delay, helping to create a more equitable and prosperous future for all in the country.”
Commenting on these results, People’s Bank Chief Executive Officer/General Manager Clive Fonseka stated:
“The results achieved in the first quarter mark the highest performance recorded for a first quarter in our institution’s history. This is a testament to our collective leadership and our ability to achieve meaningful progress even in the face of many challenges. It is also evidence of our team’s exceptional resilience, adaptability, and unwavering commitment across all areas of business operations to achieve growth.
This success was driven by an ongoing focus on enhancing operational efficiency, strategically and swiftly improving customer experiences, and making highly prudent investments in modern technology. These factors have not only strengthened our foundation but also positioned us to respond quickly to changing market conditions, deliver efficient services, and offer exceptional value to all our stakeholders.
As we look ahead to the rest of this year, we remain steadfastly focused on executing our strategic priorities. While challenges are inevitable, we have strong confidence in our ability to face them decisively and with clear purpose. Through resilience, innovation, and unwavering commitment to our long-term goals, we will continue to move forward in our progress.”
