People’s Bank’s 1Q’23 profit after tax grows
View(s):People’s Bank has announced the results for its quarter ended March 31, 2023 reporting total consolidated operating income and pre-tax profit amounting to Rs.24 billion and Rs.7.2 billion, respectively (Q1-2022: Rs.42.6 billion and Rs.11 billion).
Similar to 2022, the quarter continued to be characterised by higher interest costs; due to the high interest rate environment which prevailed. This saw consolidated net interest income dip by 49.7 per cent to Rs.15.3 billion during the period relative to Q1-22.
This, in part, also reflected the bank efforts to defer re-pricing of some of its loans to its more sensitive customer segments. Consolidated net fees and commission income amounted to Rs.4.5 billion which, excluding one off items during Q1-22, represented over a 40 per cent growth on a like for like basis, the bank said in a media release.
Reflecting inflation pushed cost pressures, much of which originated in the period after Q1-22, saw consolidated total operating expenses rise by 10.1 per cent to reach Rs.14.4 billion (Q1-22: Rs.13.1 billion). This compared well with the industry and, in part, also reflected group efforts for greater cost control at every instance so reasonably possible.
Total consolidated customers deposits grew to reach Rs.2,513.1 billion – i.e., by 2.6 per cent, whilst consolidated net loans contracted by 4.2 per cent to Rs.1,835.1 billion.
Commenting on the results, Chairman of People’s Bank, Sujeewa Rajapakse, stated that: “Whilst the sector has, and continues to reel with many headwinds over the last several years, our first quarter results remains testimony to our continued strength and resilience, and adaptability even in the most adverse set of circumstances. Over the last several years, the bank has successfully met the needs of its diverse stakeholders, leading from the front in many instances so to ensure the country is first prioritized, customer interest are safeguarded, government endeavors are supported whilst, at the same time, the bank’s commercial interests are also met.
The bank’s Chief Executive Officer/ General Manager (Acting) Clive Fonseka, stated that: “Despite the many pressures, including those unique to a state-owned institution, we have continued to make noteworthy progress on several fronts and have addressed some of the most pressing matters within a short span of time. We are currently also taking early steps to bolster our regulatory capital from current levels.”
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