Impressive half year results:

People's Bank PAT up 17.8 percent to Rs.1,310 m

Ramani Kangaraarachchi

The People's Bank has shown impressive half year results during the six months ended June 30, 2009 despite many challenges and supporting the Government's massive development projects as a State Bank, said CEO, General Manager, People's Bank P.V. Pathirana.

Pathirana told the media at the People's Bank Head Office on Friday that the bank's total net income has increased to Rs. 13,393 million, an increase of 21.5 percent compared with last year's net income of Rs.11,022 million.

Head of Finance Yohan Sosa said that the bank's total operating expenses grew to Rs. 9,551 million from Rs. 8,212 million in the previous year recording a growth of 16.3 percent and the pre-tax profit for the quarter recorded Rs. 2,604 million compared to Rs. 2,287 million in the previous year recording a 13.9 percent improvement. The post tax profit recorded Rs. 1,310 million compared to Rs. 1,112 million in the previous year, a growth of 17.8 percent.

The total assets of the bank as per the balance sheet indicated Rs. 442,640 million compared to Rs. 400,745 million last year, a growth of

11.3 percent.

Total loans and advances stood at Rs. 300,441 million compared to Rs. 249,371 million last year, an increase of 14.0 percent. Total non performing loans were Rs. 30,792 million compared to Rs. 15,977 million last year, a growth of 16.4 percent. Total deposits of the Bank increased to Rs. 362,894 million from Rs. 314,604 million, a growth of 11.8 percent.

According to the key performance indicators, the Bank's income ratio during the past six months was 66.9 percent compared to 68.9 percent in the previous year and the non funded income ratio was 19.3 percent.

The Non Performing Loans Ratio was 6.8 percent compared to 6.3 percent last year. The Net Interest Margin remained at 5.1 percent and the total contribution to the Government was Rs. 3,262 million compared to Rs. 2,722 million in the previous year, a growth of 10.8 percent.

Senior Deputy General Manager Kapila Ariyaratne said that although the growth is low in certain areas the bank has helped the Government and also supported various private sector projects. The opening of new branches in the north and east and continuing all training programs for the staff, are some of the other achievements despite the impact of the global recession, he said.