People’s Bank reported a standalone profit before tax of Rs.16.6 billion for the quarter ended 31 March 2026, with the state lender pointing to balance-sheet discipline and improving margins through a quarter marked by global volatility.
Total operating income rose 13.2% to Rs.46.1 billion from Rs.40.7 billion a year earlier, while net interest income grew 17.5% to Rs.40.1 billion. The Net Interest Margin widened to 4.3% from 4.1% as the bank repriced its book. Total assets reached Rs.3.8 trillion, customer deposits stood at Rs.3.3 trillion, and net loans and advances at Rs.1.8 trillion.
During the quarter the bank completed what it described as Sri Lanka’s largest Basel III-compliant Tier 2 debenture issuance, raising Rs.25 billion. The capital injection lifted the Total Capital Adequacy Ratio to 17.9% from 16.5% at end-2025, comfortably above regulatory thresholds. The Rupee Liquidity Coverage Ratio stood at 260%.
Asset quality continued to improve. The Stage 3 impaired loans ratio fell to 7.2% from 7.7%, and the Stage 3 provision coverage ratio rose to 50% from 48.4%.
At group level — which consolidates subsidiaries including People’s Leasing & Finance PLC — profit before tax rose 13.5% to Rs.20 billion. Group total assets climbed to Rs.4.2 trillion and net loans to Rs.2.1 trillion. Group net interest income jumped 22.9% to Rs.47.4 billion, and Group NIM widened to 4.6% from 4.4%.
Chairman Professor Narada Fernando said the quarter’s performance reflected the bank’s “strong fundamentals, prudent governance framework, and disciplined approach to risk management” during a period of geopolitical and economic uncertainty.
The release comes weeks after People’s Bank disclosed a Rs.656 million error in remittance exchange rate calculations covering May 2023 to March 2026, a separate operational issue currently subject to CBSL consultation and recovery action.
