Highlights
- Gross Income crosses LKR 284.4 billion.
- Reports an ‘all-time high’ profit after tax of LKR 28.8 billion.
- Assets, deposits and net loans expands to LKR 3.6 trillion, LKR 3.2 trillion and LKR 1.6 trillion respectively.
- All Currency and Rupee Liquidity Coverage over 234.2% and 287.0%, respectively.
- Total Capital Adequacy ratio was strong at 16.0% with Tier I being 11.5%.
People’s Bank announced its financial performance for the nine months ended September 30, 2025, delivering the best-ever results in the institution’s history. With 7 out of 10 Sri Lankans banking with People’s Bank and 1 out of every 5 retail and business loans in the country originating from the Bank, this exceptional performance reinforces its position as the most trusted and influential financial services provider in Sri Lanka.
The Bank’s solo performance was the primary driver of this record-breaking achievement. People’s Bank reported a standalone post-tax profit of LKR 28.8 billion, marking the highest nine-month profit in its history. This exceptional performance was recorded in spite of booking a significant amount as impairments on behalf of few SOE’s. Solo operating income stood at LKR 121.9 billion, a substantial 99.4% increase, supported by exceptional core earnings. Net interest income nearly doubled to LKR 103.9 billion, driven by effective asset–liability repricing amid changing market conditions, resulting in an improvement of the Bank’s net interest margin to 4.0%, compared to 3.4% in December 2024. The Bank also recorded its highest-ever net fees and commissions for the period, reaching LKR 12.2 billion, reflecting strong customer activity and strengthened transactional volumes.
The balance sheet continued to expand steadily, with total solo assets rising to LKR 3.6 trillion, deposits to LKR 3.2 trillion, and net loans to LKR 1.6 trillion, underscoring the Bank’s central role in national credit intermediation. Capital adequacy ratios remained strong, with Tier I at 11.5% and Total Capital at 16.0%, even after incorporating all prudential deductions, including those related to the State-Owned Enterprise restructuring. Liquidity levels remained well above regulatory minimums, with the Rupee Liquidity Coverage Ratio standing at 287.0%
While the Bank’s solo results formed the foundation of its record performance, the Group’s consolidated results also remained strong. Consolidated post-tax profit reached LKR 30.5 billion, with operating income amounting to LKR 139.5 billion, an 85.0% growth over the previous year. Consolidated gross income rose to LKR 312.8 billion, and consolidated assets increased to LKR 3.9 trillion, further demonstrating the Group’s resilience and the underlying strength of its subsidiaries. Consolidated net interest margins improved to 4.3%, supported by prudent margin management and heightened operational efficiency.
People’s Bank continued to demonstrate leadership in digital transformation, recording 5.7 million digital onboardings and 4.0 million mobile banking app registrations by end-September 2025. These figures reflect the rapid adoption of its enhanced digital platforms and reaffirm the Bank’s position as Sri Lanka’s most accessible and inclusive financial institution.
Commenting on the results of the Bank and the Group, the Chairman of People’s Bank, Professor Narada Fernando, stated that:
“We are pleased to present the third-quarter results for 2025, which reflect the Bank’s sustained strength and resilience. The steady normalization of previously challenged areas demonstrates the depth of the progress made, positioning People’s Bank to support the government’s economic agenda while maintaining consistent and responsible profitability as a strong state institution. Despite ongoing macroeconomic complexities, we remain firmly committed to advancing our strategic priorities, driving innovation, and enhancing collaboration to deliver secure, seamless, and modern financial services to our customers.
Our focus on expanding financial inclusion continues to guide our efforts to ensure that all Sri Lankans can benefit from the country’s economic recovery. Our vision is to be the nation’s foremost financial services provider-setting new benchmarks in service excellence, innovation, and contribution to national development. By staying focused on long-term priorities and strengthening partnerships at every level, we are confident in our ability to support a more inclusive, resilient, and prosperous future for all.”
Commenting on the Bank’s record-breaking nine-month performance, Chief Executive Officer/General Manager Mr. Clive Fonseka stated:
“I am proud to share that our third-quarter results mark the highest performance in our institution’s history—an achievement that reflects the strength of our shared purpose and the dedication of our teams across the country. Importantly, these results were delivered while the Bank was undergoing a robust business model transformation, shifting from a long-standing emphasis on state-sector financing toward competing more vigorously for private-sector business. This strategic repositioning, supported by operational excellence, customer-centric transformation, and strategic digital investments, has strengthened our foundation and enhanced agility, enabling us to deliver greater value to customers and stakeholders.”
