People’s Bank delivers record profit of Rs. 17.7 bn in 1Q25

Prof. Narada Fernando	Clive Fonseka

People’s Bank has reported total consolidated operating income of Rs. 45.1 billion and post-tax profit of Rs. 11.0 billion, reflecting a growth of 120.8 percent and 347.2 percent respectively. 

Consolidated net interest income rose to Rs. 38.6 billion during the said period from Rs. 16.1 billion in the comparable period in 2024 - reflecting timely pricing of assets & liabilities in line with changing market interest rates.  As a result, consolidated net interest margins improved to 4.3 percent in 2025 from 2.0 percent in 2024. Consolidated net fees & commissions amounted to Rs. 4.5 billion for the period - representing a growth of 20.6 percent - also a group all-time high for the same period. Total consolidated operating expenses amounted to Rs. 19.9 billion (2024: Rs. 17.6 billion).

Total consolidated customers deposits reached Rs. 3,106.5 billion (end 2024: Rs. 2,947.9 billion) whilst net loans were Rs. 1,689.4 billion (end 2024: Rs. 1,665.0 billion). Total consolidated assets reached Rs. 3,648.7 billion (end 2024: Rs. 3,471.7 billion).  The bank’s total Tier I and Total Capital Adequacy Ratios were 11.0 percent and 16.5 percent, respectively at March 31, 2025 (end 2024: 10.9 percent and 16.5 percent) whilst, on a consolidated basis, it was 12.2 percent and 17.0 percent (end 2024: 12.6 percent and 17.7 percent). To save any doubt, these were after taking into account all prudential deductions; including those specifically relating to the sovereign backed state owned enterprise restructure which was taken in full in year 2024 all things prudent considered. In addition, the bank’s solvency levels were augmented by the Rs. 13.5 billion Basel III compliant Tier II debt issuance as undertaken during 3Q2024. 

Commenting on the results of the bank and the Group, the Chairman of People’s Bank, Professor Narada Fernando stated: “We are pleased with our first-quarter results, which reflect our continued progress across multiple fronts and the sustained momentum we developed in 2024. The stabilisation and normalisation of previously stressed areas within core banking functions underscore the significant strides we have made internally. 

Meanwhile, People’s Bank Chief Executive Officer/ General Manager, Clive Fonseka, pointed out that the results for the first quarter represent the highest performance in the institution’s history.