People’s Bank continues impressive performance in 2008

The “People’s Bank has shown a continuous impressive performance, in profits and balance sheet growth over the past eight years.

The Bank has recorded an impressive performance in 2008 as well. “The Bank’s unaudited financials show profit before taxation and appropriations reaching its highest level of Rs. 5.6 bn in the 2008 financial year, whilst profit before tax for the group surpassed Rs 7.2 bn.

The Bank’s profit before taxation indicated a growth of 13.2% whilst profit after taxation recorded an impressive a 14% growth over the previous year,” said Chairman, People’s Bank W. Karunajeewa.

“The Bank’s capital funds now amount to Rs 15.9 bn up from Rs 12.9 bn over the previous year. This was contributed by a capital injection of Rs 1.5 bn by the Government and substantial retained earnings, despite high taxation and returns to the Government. The People’s Bank’s contribution to the Government by way of taxes and levies increased by 18.2% to reach Rs 7.4 bn compared to Rs 6.2 bn in 2007”, he said.

“The second phase of the People’s Bank’s major restructuring drive, based on the Strategic Plan initiated in 2001 was completed in 2008, achieving outstanding success for the Bank.

A key focus on the Bank’s Strategic Plan has been to create a customer centric and performance oriented culture,” said CEO/GM, People’s Bank P.V. Pathirana. We have already formulated the next Strategic Plan for 2009-2014 and will be focusing on achieving the set goals and objectives from 2009,” he said.

Head of Finance Yohan Soza said that in 2008, the net income of the Bank grew by Rs 2.4 bn to Rs 18.9 bn a remarkable 15% rise compared with 2007. This was mainly due to timely pricing and repricing of our loan book and despite the marginal growth recorded in our lending portfolio.

“As expected during inflationary times, the Bank’s overheads increased but moderately by 9% or Rs 1.4 bn to Rs 17.1 bn over Rs 15.7 bn in 2007. However, this increase was within internal budgetary levels. The People’s Bank recorded a working profit of Rs. 7.3 bn, an improvement of Rs 1.4 bn over 2007.

Provisioning as required by the Central Bank, was increased for another successive year. The 1% general provision on performing loans is expected to be met on schedule by March 31.

Total general provisions (inclusive of pawning) amounted to Rs 577 mn, as against Rs 352 mn in 2007. The Bank’s specific provisions totalled Rs 965 mn in 2008, compared to Rs 470 mn in 2007”.