People’s Bank has reported its strongest financial performance to date for the year ending December 31, 2025, with a record standalone Profit After Tax (PAT) of LKR 40.2 billion. This achievement highlights the Bank’s exceptional stability and significant contribution to national economic activity. Despite the challenges posed by Cyclone Ditwah during the year, the Bank effectively utilized proactive business continuity measures and prudent risk management to limit the financial impact and achieve these outstanding results.
The Bank’s impressive standalone performance was a key driver of its success, marked by notable growth across all major income sectors. Operating income increased by 32.5% to LKR 165.8 billion, while net interest income rose by 32.8% to LKR 142.4 billion. This growth resulted in an improved net interest margin, which climbed to 4.1% from 3.4% in the previous year. The Bank’s balance sheet also showed robust expansion, with solo assets amounting to LKR 3.7 trillion, deposits rising to LKR 3.2 trillion, and net loans growing to LKR 1.7 trillion. This solo strength is supported by a solid capital position, including a Total Capital Adequacy ratio of 16.5% and a Tier 1 ratio of 12.2%, both well above regulatory requirements.
On a consolidated level, the People’s Bank Group achieved a historic milestone, with total assets and total loan portfolios reaching LKR 4.0 trillion and LKR 2.0 trillion, respectively. The Group reported a Profit After Tax of LKR 43.5 billion, with consolidated gross income increasing to LKR 424.0 billion. This accomplishment reflects sustained growth across both core banking operations and subsidiaries, reinforcing the Group’s enhanced financial capacity and its firmly established strategic position within the financial sector.
Chairman Professor Narada Fernando commented on the full-year performance, noting that the results demonstrate the Bank’s ability to navigate challenges while strengthening its operational foundations. He stated that the recovery of previously pressured segments has improved overall stability, enabling the Bank to contribute meaningfully to the Government’s economic priorities while ensuring sustainable and prudent profitability. He also reaffirmed the institution’s commitment to innovation, partnerships, and broader financial inclusion so that the benefits of economic progress reach communities across the country.
Chief Executive Officer/General Manager Mr. Clive Fonseka described the twelve-month outcome as a landmark achievement for the Bank. He explained that the results were delivered amid a deliberate transformation of the Bank’s operating model, with greater emphasis placed on expanding private-sector business alongside its traditional role. Mr. Fonseka further highlighted that the record-breaking performance, together with the Group’s historic LKR 4.0 trillion asset milestone, underscores the Bank’s strengthened scale, operational resilience, and long-term strategic positioning. He added that continued investments in efficiency, customer experience, and digital capabilities have strengthened competitiveness, improved responsiveness, and positioned the Bank for sustainable growth in the years ahead.
Beyond financial metrics, People’s Bank has made qualitative contributions to the country’s economy through inclusive and purpose-driven initiatives. The Bank played a central role in the national “Pay Digital” agenda by increasing awareness and usage of its digital banking platforms, which exceeded 4.0 million subscribers. Furthermore, its commitment to grassroots economic empowerment was evidenced by community outreach initiatives for World MSME Day and the BizTeens Challenge 2025, which fostered entrepreneurship among younger demographics. By aligning its business and operational strategies with national priorities, the Bank continues to serve as a trusted partner in Sri Lanka’s economic progress.
