- A record standalone PAT of LKR 20.5 billion
- A record standalone PBT of LKR 32.6 billion
- Total operating income grows 17.7% to LKR 95.2 billion
People’s Bank continued its strong growth momentum during the six months ended June 30, 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 LKR 32.6 billion for the period, together with a record Profit After Tax of LKR 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 LKR 95.2 billion, compared with LKR 80.9 billion in the corresponding period of the previous year, while net interest income grew by 18.9% to LKR 82.4 billion, from LKR 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.
The Bank’s balance sheet continued to demonstrate steady expansion and financial stability, with total assets stabilizing at LKR 3.8 trillion.
Significantly, gross loans and advances surpassed the LKR 2.0 trillion milestone for the first time, reaching LKR 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. 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 June 30, 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.
At Group level, People’s Bank continued to record strong growth during the first half of 2026, supported by healthy core banking expansion, improved margins and disciplined cost and risk management. The Group reported a Profit Before Tax of LKR 37.4 billion, compared with LKR 31.0 billion in the corresponding period of the previous year, representing 20.6% growth. The Group’s balance sheet stabilized with total assets at LKR 4.1 trillion, while gross loans and advances increased to LKR 2.4 trillion, reinforcing its strengthened scale and business growth across key segments.
Group net interest income increased significantly to LKR 97.0 billion from LKR 79.0 billion, recording 22.9% growth, supported by effective balance sheet repricing and sustained lending activity. The Group also recorded an improvement in Net Interest Margin 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.
Chairman Prof. Narada Fernando stated 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. Commenting on the results, Chief Executive Officer/General Manager Mr. Clive Fonseka highlighted the Bank’s continued resilience and strong underlying performance amid a dynamic global and domestic environment.