Highlights
- Top line: Gross income surpasses LKR 188.9 billion in 1H- 2025 on a solo basis
- Gross income Profitability: Reports ‘all-time high’ profit after tax of LKR 18.2 billion
- Balance Sheet Expansion: As of June 30, 2025, the Bank’s total assets, deposits, and net loans stood at LKR 3.6 trillion, LKR 3.1 trillion, and LKR 1.6 trillion, respectively
- Liquidity: Liquidity Coverage Ratios continue to remain at institutional all-time highs, with All-Currency and Rupee coverage at 257.3% and 318.6%, respectively
- Strong Capital Adequacy: Total Capital Adequacy remained strong at 16.9%, with the Tier I capital ratio at 12.0%.
- Digital Leadership: Digital onboarding continues to expand, with the customer base reaching 3.7 million by end-June 2025, the largest for any financial services provider in the country.
People’s Bank, Sri Lanka’s leading financial services provider, today announced its results for the period ended June 30, 2025, reporting operating income of LKR 80.8 billion and post-tax profit of LKR 18.2 billion. This achievement is particularly noteworthy, as this profit was recorded after recognizing significant impairment charges on exposures to several state-owned enterprises (SOEs).
The Bank’s net interest income rose to LKR 69.3 billion during the period, compared to LKR 27.6 billion in the corresponding period of 2024, reflecting the timely repricing of assets and liabilities in line with changing market interest rates. Consequently, net interest margins improved to 4.0% in 2025 from 3.4% in the end 2024. Net fees and commissions reached LKR 8.0 billion, recording a 16.8% growth, the highest ever for the same period. Total operating expenses stood at LKR 33.4 billion (2024: LKR 28.7 billion)
Customer deposits reached LKR 3,125.3 billion (end-2024: LKR 2,854.7 billion), while net loans stood at LKR 1,592.3 billion (end-2024: LKR 1,522.0 billion). Total assets rose to LKR 3,571.8 billion on a solo basis (end-2024: LKR 3,297.8 billion).
As of June 30, 2025, the Bank’s Tier I and Total Capital Adequacy Ratios stood at 12.0% and 16.9%, respectively (end-2024: 10.9% and 16.5%). On a consolidated basis, the ratios were 13.2% and 17.6% (end-2024: 12.6% and 17.7%). These ratios reflect all prudential deductions, including those related to the sovereign-backed state-owned enterprise restructuring, which were fully accounted for, ensuring a conservative and prudent assessment.
The consolidated operating income of the group at the end of 1H 2025 was LKR 91.8 billion. Pre-tax and Post-tax profit on consolidated basis were LKR 31.0 billion and LKR 19.6 billion, respectively. The group total deposit reached LKR 3,248.1 billion, while net loan grew to LKR 1,785.6 billion and total assets reached to LKR 3,795.0 billion by end of June 2025 on a consolidated basis
Commenting on the results of the Bank and the Group, the Chairman of People’s Bank, Professor Narada Fernando, stated that:
“We are pleased to report a historic and record performance for the first half, reflecting the sustained momentum since 2024 and the continued progress we have made across multiple fronts. This achievement underscores our strong position as an independent state institution, well-equipped to make meaningful contributions to the government’s broader agenda of strengthening the national economy.
Our focus extends well beyond profitability. We remain firmly committed to advancing financial inclusion, supporting the SME sector, and uplifting the living standards of all Sri Lankans.
Amidst the ongoing challenges of a recovering macroeconomic environment, we are steadfast in executing our strategic priorities. These include strengthening the private sector lending, with a special emphasis on the SME base, fostering innovation, and empowering entrepreneurs, all with the ultimate goal of reinforcing the broader economy.
Our vision is to be the nation’s foremost financial services provider, setting the benchmark for excellence in customer service, innovation, and meaningful contributions to national development.”
Commenting on the Bank’s performance, Mr. Clive Fonseka, Chief Executive Officer/General Manager of People’s Bank, stated:
“I am delighted to announce that the first half of 2025 marks the highest-ever performing first half in People’s Bank’s history. This remarkable achievement reflects the collective dedication, resilience, and strategic agility of our entire team, particularly in the face of a challenging operating environment.
Importantly, this record-breaking performance was achieved despite a significant reduction in our exposure to State-Owned Enterprises (SOEs). The exposure to SOEs declined to 26.5% by the end of 1H of 2025, from 42.8% at the end of 1H of 2024. Our strategic pivot towards the private sector successfully offset the decline in SOE business volumes, enabling us to mitigate potential negative impacts. This shift clearly demonstrates our strength and resilience as a true commercial bank.
We remain fully committed to executing our strategic priorities. While we recognize that external challenges will persist, we are confident in our ability to navigate them with purpose and resolve. Our progress will continue to be driven by the values that define us, resilience, innovation, and an enduring commitment to creating long-term value for all our stakeholders.”
Commenting on the overall performance, Ms. Thushari Hewawasam, Acting Head of Finance and DGM – Commercial Credit, noted that as of end-June 2025, the Group’s asset base reached LKR 3.8 trillion, reflecting a strong 9.3% growth in the first half of the year. The increase was primarily attributable to LKR 120.6 billion rise in net loans and advances, complemented by LKR 300.2 billion growth in the Group’s deposit base. She further highlighted that this performance underscores the Bank’s strategic emphasis on operational efficiency, digital transformation, and customer-centric initiatives, which have strengthened its competitive position and ability to adapt to emerging challenges.
