People’s Bank was the highest contributor in the banking sector to government coffers in 2009, paying Rs.7.7 billion in taxes and levies, up 4% from Rs.7.3 billion in 2008, Head of Finance People’s Bank Yohan Soza told the Business Times.
He made this comment on the sidelines of a Colombo media briefing the financial results of bank in 2009, adding that the Value Added Tax (VAT) continues to be a bugbear in dragging the bank’s profitability down. He noted that some expenditure items under salaries and wages cannot be set off against VAT computation and therefore marks an added liability of 20%.
However, he pointed out, that the bank’s overheads rose by 15 % to Rs 19.7 billion over 2008.
The key driver behind the increase was salaries and related expenses due to the pay adjustments made through the 2009-2011 collective agreement.
Presenting the annual report to the media, he said that People’s Bank has shown a continuous impressive performance, in profits and balance sheet growth over the past nine years.
After tax profit for the group surpassed Rs 7.8 billion. In terms of the bank’s post tax profit, the results reported showed a 23 % growth over the previous year, he said.
CEO/General Manager P.V .Pathirana said that the bank posted a consistent growth, based on a pragmatic vision and strategic plan that has not wavered, even in the midst of difficult challenges . |
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