People’s Bank continued its strong growth momentum during the six months ended 30 June 2026, delivering robust profitability supported by sustained core banking performance, improved margins, and disciplined financial management.
The bank recorded a standalone Profit Before Tax (PBT) of Rs. 32.6 billion for the period, together with a record Profit After Tax (PAT) of Rs. 20.5 billion, reflecting the continued strengthening of its earnings capacity and financial position despite an evolving global and domestic economic environment.
The strong profitability was underpinned by broad-based growth across the bank’s core income streams. Total operating income increased by 17.7% to Rs. 95.2 billion, compared with Rs. 80.9 billion in the corresponding period of the previous year, while net interest income grew by 18.9% to Rs. 82.4 billion, from Rs. 69.3 billion.
The bank also recorded a further improvement in its Net Interest Margin (NIM), which increased to 4.4% from 4.1%, reflecting effective asset and liability repricing and disciplined Balance Sheet management. These results demonstrate the bank’s ability to translate sustained business growth into stronger earnings while maintaining a prudent approach to credit and risk management.
Strong business growth supports earnings momentum
The bank’s Balance Sheet continued to demonstrate steady expansion and financial stability, with total assets stabilising at Rs. 3.8 trillion.
Significantly, gross loans and advances surpassed the Rs. 2 trillion milestone for the first time, reaching Rs. 2.1 trillion. The achievement reflects continued momentum in the bank’s core lending activities and its ability to expand its business while maintaining a stable overall financial position.
This combination of growing lending activity, stronger core income generation, and improving margins has provided a solid foundation for the bank’s continued profitability and reinforces the positive growth trajectory established across its key business areas.
Stronger capital, liquidity and asset quality
The bank’s profitability and prudent Balance Sheet management continued to strengthen its capital and liquidity position during the first half of 2026.
The Total Capital Adequacy Ratio improved to 18.2% as at 30 June 2026, compared with 17.9% at the end of the first quarter and 16.5% at the end of 2025, remaining comfortably above the regulatory minimum. The bank’s Tier I Capital Adequacy Ratio stood at 12.7%.
Liquidity also remained robust, with the All Currency Liquidity Coverage Ratio at 212.3% and the Rupee Liquidity Coverage Ratio at 255.9%, reflecting strong liquidity buffers and continued financial resilience.
The improvement in these key asset-quality indicators, achieved alongside sustained loan portfolio growth, reflects enhanced recovery efforts, prudent credit-risk management, and the bank’s continued focus on maintaining a resilient Balance Sheet.
Group profitability maintains strong upward momentum
At Group level, People’s Bank continued to record strong growth during 1H 2026, supported by healthy core banking expansion, improved margins, and disciplined cost and risk management.
The Group reported a PBT of Rs. 37.4 billion, compared with Rs. 31 billion in the corresponding period of the previous year, representing 20.6% growth.
The Group’s Balance Sheet stabilised with total assets at Rs. 4.1 trillion, while gross loans and advances increased to Rs. 2.4 trillion, reinforcing its strengthened scale and business growth across key segments.
Group net interest income increased significantly to Rs. 97 billion from Rs. 79 billion, recording 22.9% growth, supported by effective Balance Sheet repricing and sustained lending activity.
The Group also recorded an improvement in the NIM to 4.8% from 4.4%, reflecting efficient asset-liability management and improved yields on interest-earning assets.
Overall, the Group maintained strong operational momentum and financial resilience during the period, further reinforcing its strategic position as one of the country’s leading financial institutions.
Reflecting on the bank’s performance during 1H 2026, Chairman Prof. Narada Fernando said that People’s Bank has continued to demonstrate strength, resilience, and financial stability despite a complex global environment shaped by geopolitical developments and persistent economic uncertainties.
He noted that the bank’s performance is underpinned by strong financial fundamentals, sound governance practices, and a prudent risk-management framework, enabling it to navigate prevailing challenges while maintaining positive momentum across key financial indicators.
The Chairman also reaffirmed People’s Bank’s commitment to supporting the country’s economic priorities and contributing to the ongoing economic recovery. He emphasised that the bank’s continued role in facilitating economic activity and strengthening financial inclusion remains central to its purpose of fostering sustainable and inclusive growth, while creating long-term value for stakeholders and contributing to the country’s development.
Chief Executive Officer/General Manager Clive Fonseka highlighted the bank’s continued resilience and strong underlying performance amid a dynamic global and domestic environment.
He noted that the bank’s robust core income generation, improved margins, strengthened asset quality, and stable Balance Sheet position reflect the effectiveness of its strategic focus and disciplined financial management, enabling People’s Bank to maintain positive momentum while responding to evolving challenges.
Fonseka further emphasised that the bank’s strong capital and liquidity position, supported by prudent risk-management practices, provides a solid foundation for sustainable growth and continued financial resilience.
Ongoing investments in digital banking, customer experience, operational efficiency, and inclusive financial solutions are also expected to further strengthen the bank’s competitiveness and enhance the value delivered to customers.
Fonseka also highlighted the achievement of ISO 22301:2019 certification as a significant milestone for People’s Bank, reflecting its unwavering commitment to operational resilience, service continuity, and customer trust.
As the first State-owned bank in Sri Lanka to receive this prestigious certification, the achievement underscores People’s Bank’s commitment to maintaining critical banking services and ensuring business continuity in the face of unforeseen disruptions.
He reaffirmed that People’s Bank remains committed to strengthening its role as a trusted financial partner while sustaining its positive financial momentum and contributing to Sri Lanka’s sustainable economic progress.