People’s Bank has announced the strongest financial performance in its history for the year ended December 31, 2025, reporting an all-time high standalone Profit After Tax (PAT) of 40.2 billion rupees. This landmark achievement underscores the Bank’s exceptional stability and its pivotal role as a driver of national economic activity.
Despite the external challenges posed by Cyclone Ditwah during the year, the Bank utilized proactive business continuity measures and prudent risk management to limit financial impact and deliver these record-breaking results. The Bank’s stellar standalone performance was the primary driver of its success, characterized by significant growth across all key income lines.
Operating income rose by 32.5 percent to 165.8 billion rupees, while net interest income grew by 32.8 percent to 142.4 billion rupees. This growth lifted the net interest margin to 4.1 percent, up from 3.4 percent in the previous year. The Bank’s balance sheet also demonstrated steady expansion, with solo assets reaching 3.7 trillion rupees, deposits increasing to 3.2 trillion rupees, and net loans growing to 1.7 trillion rupees. This solo strength is underpinned by a robust capital position, with Total Capital Adequacy and Tier 1 ratios of 16.5 percent and 12.2 percent, respectively, well above regulatory thresholds.
At a consolidated level, the People’s Bank Group marked a historic milestone as total assets and the total loan portfolio reached the four trillion-rupee and two trillion-rupee thresholds, respectively. The Group reported a Profit After Tax of 43.5 billion rupees, with consolidated gross income rising to 424 billion rupees. This achievement reflects sustained expansion across both core banking operations and subsidiaries, reinforcing the Group’s strengthened financial capacity and its firmly established strategic position within the financial sector.
Commenting on the full-year performance, Professor Narada Fernando, Chairman, People’s Bank, noted 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.
Clive Fonseka, Chief Executive Officer/General Manager, People’s Bank, 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. Fonseka further highlighted that the record-breaking performance, together with the Group’s historic four trillion rupees 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 the bank’s digital banking platforms, which exceeded four million rupees subscribers. Furthermore, its commitment to grassroots economic empowerment was evidenced by community outreach 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.
