People’s Bank, which completed 46 years of service to the people of Sri Lanka, has recorded its sixth continuous year of impressive performance in 2007. The Bank’s audited financials show profit before taxation reaching its highest of Rs.5 bn in the 2007 financial year, whilst profit before tax for the group exceeded Rs.6bn. Profit before taxation indicated a growth of 22.6% over 2006. It should be noted that People’s Bank’s contribution to the Government of Sri Lanka in the form of taxes and levies increased by 48% to reach Rs.6.2bn, compared to Rs.4.2bn in 2006. In spite of this, the Bank’s capital funds now amount to Rs.13.2bn up from Rs.10.3bn in 2006.
The Bank has had a successful year in relation to deposits, with total deposits reaching Rs.301bn, whilst total assets reached Rs.381bn depicting a growth of 11% and 12% respectively over previous financial year.
The second phase of People’s Bank’s restructuring drive based on the development plan initiated in 2001 completed three years, resulted in outstanding success for the Bank.
The Bank’s IT platform now has 504 branches and service centers linked for online transactions. Further, the Bank currently has 190 ATMs, including a mobile ATM, reaching customers in remote areas.
In addition, the restructuring strategies of the Bank focused towards credit recovery. To accelerate the recovery of longstanding non-performing loans, People’s Bank implemented a vigorous recovery plan across the country. Substantial recoveries were noted from non-performing advances of over Rs.400mn in 2007. As a result, the NPL ratio was reduced to 5.8% in 2007, from 7.1% in 2006 and the NPL portfolio was cut down from Rs.15.9bn to Rs.14.9bn as at end 2007. The overall slippage in the non-performing category from new advances since 2002 is below 3%, which places the Bank within industry norms.
During the year under review People’s Bank was recognized by the people of the nation as the inspiration behind their lives, winning the coveted ‘Banking and Financial Services Brand of the Year’ award at the ‘People’s Awards’. This signified the Bank’s prominence in the financial services sector.
During 2007, People’s Bank put in place strategies to support the vision of the state for the economic development of the country. The Bank extended value added services to the development of micro, SME and agricultural sectors.
The pawning business has grown to become an integral part of the financing cycle in the agriculture, fisheries and tea smallholder sectors. Currently, People’s Bank is the market leader in the pawning business, and the most preferred and sought-after pawning service in the country.
People’s Bank currently has the widest network of 638 branches and service centers. The Bank has a wide range of deposit and loan schemes to individuals, and large and small enterprises, together with trade finance facilities and foreign currency services. In 2008 and beyond, the Bank will continue to maintain its growth momentum through maintaining excellent customer services and relationship management. It will continue to fulfill its original objectives of supporting and uplifting the needy segments of the economy and population, which also compliments the state vision for Sri Lanka.
