Banco Popular maintains constant performance

It reports profit after tax of Rs. 12.7 billion for the nine months ended September 30, 2022 on a standalone basis and Rs. 15.1 billion on a consolidated basis. People’s Bank published the results of its nine-month period ending 30th September 2022 last week, posting a pre-tax profit of Rs. 17.0 billion in a single bank and Rs. 21.0 billion consolidated basis.

Total operating income increased by 41.3% to reach Rs. 91.0 billion, while total operating expenses grew by just 9.6% to Rs. 31.4 billion reflecting prudent cost management in the midst of a highly challenging macroeconomic environment characterized, among other things, by a currency devaluation of 80.0% and which is mainly derived from inflationary pressure close to 70.0%. The Bank’s cost-to-income ratio was 40.9% for the ended 9-month period compared to 52.3% during the same period in 2021, reflecting both top line growth and cost increases controlled.

Net interest income grew by 12.7% to Rs. 66.5 billion, while interest expense increased 89.6% during the nine months of 2022. As a result, net interest margins fell to 3.12% from 3.27% in the same period of 2021. Fee income grew by 128.0% to reach Rs. 12.8 billion compared to Rs. 5.6 billion in the same period of 2021. Excluding extraordinary items, growth was close to 30.0%, reflecting the Bank’s continuous effort to improve its sources of unfunded income, even more so in a highly volatile interest rate environment. Impairment charges increased significantly, reflecting challenging macro circumstances and the elevated level of risk in its key customer segments. The profit after tax was Rs. 12.7 billion, falling 15.6% over the same period in 2021. Total deposits grew 10.4% to reach Rs. 2,286.3 billion, while net loans amounted to Rs. 1,811.0 billion, contracting marginally 1.3%. Total assets reached Rs. 3,028.5 billion, growing 14.4% since the end of 2021.

The Bank’s total and Tier I capital adequacy ratio was 11.2% and 15.6%, respectively, on an individual Bank basis (end 2021: 12.6% and 17.8%), while, on a consolidated basis, it was 12.4% and 16.3% (end of 2021). : 13.4% and 17.9%). The Bank’s solvency reflected its efforts to increase its regulatory capital since the implementation of Basel III on July 1, 2017, with additional efforts in this regard underway. People’s Bank President Sujeewa Rajapakse said: “Considering all factors and circumstances, we are pleased with the Bank’s results.

Regardless of the sector or nature of the business, 2022 is not a year in which performance is measured by the bottom line, but by resilience, prudence, solvency without any regulatory leniency, and most importantly, guidance. to the client in his moment of dire need”. CEO Ranjith Kodituwakku said: “With the economy set to contract this year, excluding the impact of currency devaluation, most balance sheets are likely to contract. While profitability is not the focal point, bolstering liquidity, strengthening capital, and driving productivity and efficiency improvements in these challenging times through digital and other means are key focus areas.”

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