People’s Bank demonstrates its resilience in 2022
View(s):People’s Bank announced its 2022 results showing consolidated gross revenues, total operating income, and pre-tax profit amounting to Rs.391.2 billion, Rs.130 billion, and Rs.26.7 billion, respectively, compared to 2021 results: Rs.236.8 billion, Rs.110.7 billion and Rs.37.2 billion.
In a media release, the bank – the second largest in the country – said consolidated interest income rose by 58 per cent during the year under review to reach Rs.351.4 billion whilst interest expenses soared by 107.5 per cent to Rs.260.4 billion, reflecting the faster pace repricing of term deposits relative to loans. To preserve and protect its most vulnerable customer segments – the bank and the group shouldered much of the interest cost increases – either by delaying or deferring any re-pricing of their loans. These collectively saw Consolidated Net Interest Margins slip by 6 per cent to Rs.91 billion (2021: Rs.96.9 billion).
Reflecting high inflationary pressures during the year under review which peaked at close to 70 per cent, total consolidated operating expenses rose by 16.8 per cent to Rs.59 billion (2021: Rs.50.5 billion); reflecting prudent cost control and efficiency improvements as exercised at every instance so reasonably possible.
The bank’s exposure to foreign currency investments subject to external debt restructuring was amongst the lowest with an aggregate amortized cost of only US$ 51.4 million at December 31, 2022.
Total consolidated customers deposits grew by 13 per cent to reach Rs.2,450.1 billion whilst consolidated net loans contracted by 3.8 per cent to Rs.1,915.8 billion.
Commenting on the results, the Chairman of People’s Bank, Sujeewa Rajapakse, stated that: “From a macro-economic perspective, 2022 was the culmination of economic stresses and stress events over the last several years. It was a year that saw the country’s external reserve position falling to a level previously unseen, the rupee devalue by close to 80 per cent, inflation soar to nearly 70 per cent, policy rates increase in a manner unprecedented in view of curbing inflationary pressures and, all in all, resulting in the country’s credit rating fall to a historic low and the economy contract by close to 11 per cent which is deepest seen since independence.”
Acting CEO/ General Manager of People’s Bank, Clive Fonseka, stated that: “Looking at 2022 – our success remains in our contribution to the country in its time of absolute need, the interest loss and cost absorbed for the long-term well-being of our most vulnerable customers, and our ability to strengthen the various aspects of the bank’s business in these trying times.”
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