People’s Bank’s pre-tax profit for 2021 Rs. 37.2 bln

People’s Bank, releasing results for the year ended December 31, 2021, said this week consolidated total operating income reached Rs.110.7 billion while total operating expenses amounted to Rs. 50.5 billion, much higher than in 2020.

Consolidated pre- tax and post- tax profits amounted to Rs. 37.2 billion and Rs. 28.1 billion, representing a 51.1 per cent and 74.6 per cent growth.

On the bank’s standalone basis, these figures were Rs.30.4 billion and Rs. 23.7 billion, respectively, up 43.2 per cent and 67.3 per cent over 2020, the bank said in a media release.

Income growth primarily stemmed from net interest income, which accounted for close to 90 per cent of total operating income and grew by 30.2 per cent in line with the bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4 per cent to reach Rs.9 billion, reflecting the bank efforts to improve its non-funded income sources.

Expense growth mostly related to direct business growth. Relative to 2019, the bank’s cost to income ratio has shown a marked improvement at 51.1 per cent in 2021 as compared with 54.3 per cent in 2020 and 61.8 per cent in 2019. Bank-wide impairment charges rose reflecting macro- economic stresses as seen throughout the industry.

During the year, the bank invested in rural development, supported small and medium- sized enterprises ( SMEs) and encouraged women entrepreneurship. At end 2021, it extended over Rs. 63 billion to SMEs through various loan initiatives.

The bank’s consolidated loan book expanded by 12.1 per cent to reach Rs.1,990 billion at end 2021.

Total consolidated taxes and dividends to the Government totalled Rs. 20.4 billion during 2021, representing a 25.1 per cent growth over Rs.16.3 billion in 2020.

Commenting on the results, People’s Bank Chairman Sujeewa Rajapakse, said that: “We are very pleased with the results of the bank more so as attained during unseen- like before circumstances. As a national institution, we don’t measure our success by a typical top line or bottom line but by our national value added - with our results both from a quantitative and qualitative perspective self-attesting to our resilience in these difficult times and overall performance including, most notably, our productivity and efficiency.”

Bank CEO/General Manager Ranjith Kodituwakku, added: “If one thought 2020 was challenging, 2021 was at a different level. Operationally, it continued to test our commitment, our discipline, our resolve, our strength and, importantly, our technological capabilities. If anything, the pandemic has expedited all things touchless, all things remote and all things digital.”