People's Bank recorded an impressive growth in profit after tax and before extraordinary items reaching Rs. 2.195 billion for the year 2004, its Chairman P. Amarasinghe said. He said the profit after taxation and all extraordinary items amounted to Rs. 1.414 billion. The extraordinary items related mainly to provision for losses arising from the tsunami, amounting to Rs. 681 million.

"The bank has performed exceptionally well and recorded a consistent profit and balance sheet growth despite the many challenges faced last year which affected many of its customers due to the tsunami," Amarasinghe said.

He said that the Bank is now on a financially stronger footing which helped them to absorb the financial impact of the tsunami on its bottom-line. This enabled it to play a critical role in helping the government disburse grants and loans to affected families and business.

Acting CEO/General Manager T. Karunasena said that the People's Bank was able to announce the result with great satisfaction in the year 2004.

He said the Bank was able to achieve this result because it has adopted a three-year strategic plan as a part of their restructuring process from 2001-2003. The second phase of the strategic plan for the year 2004-2008 will be started soon, he said.

Head of Finance Bertal Pinto Jayawardena said the Bank's customer deposits grew by 18 per cent last year to Rs. 185 billion, from its over nine million deposits accounts.

He said that the non performing loan portfolio, a key indicator on the quality of lending was also significantly lower at 14 per cent of total lending compared to 21 per cent in 2001 when the current restructuring process commenced. The new combined management team, together with all levels of staff of the Bank, were able to achieve an outstanding run of success for the Bank, resulting in a highly successful completion of the first strategic plan, he said.

Jayawardena said that the first year of the second phase 2004 has ended with the Bank achieving not only its highest ever profit before and after tax, but also showing continued improvement of customer service quality standards and a strong focus to upgrade the technology infrastructure of the Bank. (H.S.)