People’s Bank posts best ever 9-month earnings as core performance surges

Chairman Prof. Narada Fernando

Chief Executive Officer Clive Fonseka

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. 
The bank’s solo performance was the primary driver of this record-breaking achievement. People’s Bank reported a standalone post-tax profit of Rs.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 state-owned enterprises (SOEs). Solo operating income stood at Rs.121.9 billion, a substantial 99.4 percent increase, supported by exceptional core earnings. The net interest income nearly doubled to Rs.103.9 billion, driven by effective asset-liability repricing, amid the changing market conditions, resulting in an improvement of the bank’s net interest margin to 4.0 percent, compared to 3.4 percent in December 2024. The bank also recorded its highest-ever net fees and commissions for the period, reaching Rs.12.2 billion.
The balance sheet continued to expand steadily, with total solo assets rising to Rs.3.6 trillion, deposits to Rs.3.2 trillion and net loans to Rs.1.6 trillion, underscoring the bank’s central role in national credit intermediation. Capital adequacy ratios remained strong, with Tier I at 11.5 percent and total capital at 16.0 percent, even after incorporating all prudential deductions, including those related to the SOE restructuring. Liquidity levels remained well above the regulatory minimums, with the rupee liquidity coverage ratio standing at 287.0 percent 
The group’s consolidated results also remained strong. Consolidated post-tax profit reached Rs.30.5 billion, with the operating income amounting to Rs.139.5 billion, an 85.0 percent growth over the previous year. The consolidated gross income rose to Rs.312.8 billion and the consolidated assets increased to Rs.3.9 trillion, further demonstrating the group’s resilience and the underlying strength of its subsidiaries. The consolidated net interest margins improved to 4.3 percent, 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.
Chairman Prof. Narada Fernando stated, “The steady normalisation 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.”
Chief Executive Officer/General Manager Clive Fonseka stated the 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 the customers and stakeholders.”