Fitch Ratings Lanka Limited recently re-affirmed the National Long Term Rating on People’s Bank at ‘AA+(lka) with a Stable Outlook - continuing to put the Institution amongst the two highest rated Locally incorporated Commercial Banks in the country on a National Scale
In its Rating Announcement the Agency stated that: “The National Long-Term Rating of People’s Bank reflects Fitch’s expectation of extraordinary support from the sovereign (B+/Negative) albeit constrained by its limited ability. Fitch expects support for People’s Bank to stem from its high systemic importance, quasi-sovereign status, role as key lenders to the government and full state-ownership”
Commenting on the affirmation, the Chairman of People’s Bank Hemasiri Fernando stated that: “the evolution of the Bank’s Rating provides a simple but powerful testimony to an irrefutable fact.”
“Having been rated ‘A- (lka)’ during 2008, to having received an industry unprecedented systematic five notch upgrade to reach ‘AA+ (lka)’ by the end of 2012, and a capacity to consistently maintain this Credit Quality thereafter since, notwithstanding the many challenges from a macro-economic stand-point, self attests to both the consistent and sustained positive progress made by the Institution over the years.
As for 2016, it will be a year etched in our history books for many reasons. Amongst them all, it will be best remembered as the year that witnessed not only a single trillion rupee feat but in fact two.”
“Following its first trillion rupee landmark achievement in terms of consolidated group assets in 2013, during the year 2016, the Bank saw not only its customer deposits reach this historic milestone but also its group customer advances. This provides ample evidence to our standing within the industry - supported by our unmatched network of branches spread across all major cities and suburbs in the country.”
Commenting on Bank’s performance, The Chief Executive Officer/ General Manager of People’s Bank Vasantha Kumar stated that: “Our delivery amidst challenging circumstances remains best described in two simple but primary indicators. First, an industry benchmark return on equity of over 20% delivered consistently since 2014 and second, a consciously and very diligently reduced gross non performing loan ratio to less than 2.0% - which is not only our ten year low but also amongst the lowest in the industry.”
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