Financial Review - Peoples Bank

Headings (Contd.)
Financial
Statements
Annual Report 2006 ~ People’s Bank 81

Financial Review 2006
The Bank has made a steady growth since the year 2001 when the
financial turnaround of the Bank was first recorded. The Bank
achieved the targets set out in the first Strategic Plan from 2001-2003
and is achieving progress on the Development Plan of 2004 to 2008.
A comprehensive discussion and financial analysis is depicted in the
form of graphs and charts over the last five years.
The visual depiction set out herein covers all aspects of the Bank’s
business from an analysis of tends interalia the growth in profitability
and its component areas, growth in capital funds, change in capital
adequacy requirement and the Balance Sheet and its components
with Key Performance Indicators.
LKR MNS
2002 2003 2004 2005 2006
Profit Before Taxation
and Appropriations 1,360 2,127 2,463 4,035 4,079
Profit After Taxation
before Appropriations 1,578 2,127 2,086 2,772 3,157
LKR MNS
2002 2003 2004 2005 2006
Risk Weighted Assets 61,351 83,487 90,790 93,487 117,954
Required Capital Funds 5,522 8,349 9,079 9,349 11,795
Capital Funds in Hand (3,301) (1,410) (34) (4,017) 10,456
Capital Funds Shortfall 11,194 12,123 11,130 7,584 5,157
82
People’s Bank ~ Annual Report 2006

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Capital Funds (3,301) (1,410) (34) 4,017 10,456
LKR MNS
2002 2003 2004 2005 2006
Current 19,285 23,484 26,668 32,561 48,357
Savings 73,917 86,348 100,115 118,061 131,470
Time 46,068 44,022 56,160 71,875 86,675
C/D's 362 405 332 286 259
Others 2,203 3,052 2,368 2,816 3,186
Total 141,835 157,310 185,643 225,600 269,947
LKR MNS
2002 2003 2004 2005 2006
Current 19,127 23,290 26,386 32,445 47,408
Savings 67,376 78,670 90,696 104,458 118,336
Time 40,543 39,092 48,093 61,682 73,922
Certificate of Deposits 362 405 332 286 259
Others 2,029 3,003 2,313 2,776 3,152
Total 129,437 144,460 167,820 201,647 243,077
Annual Report 2006 ~ People’s Bank 83

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Current 157 194 282 117 949
Savings 6,541 7,678 9,419 13,603 13,134
Time 5,525 4,930 8,067 10,194 12,753
Others 174 49 55 40 34
Total 12,398 12,851 17,823 23,953 26,870
LKR MNS
2002 2003 2004 2005 2006
Overdrafts 21,740 21,975 19,306 25,386 34,459
Pawning 15,259 22,418 32,615 41,648 58,385
Trust Receipts 1,725 9,679 11,634 3,137 4,965
Staff Loans 9,065 8,400 8,586 9,602 10,553
Other Loans 64,542 53,936 63,120 70,745 110,119
Bills of Exchange 6,156 4,602 4,949 7,221 4,909
Total Loans &
Advances 118,487 121,010 140,209 157,738 223,391
84
People’s Bank ~ Annual Report 2006

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Total Loans &
Advances 118,487 121,010 140,209 157,738 223,391
NPL'S 23,105 21,721 19,715 17,418 15,951
LKR MNS
2002 2003 2004 2005 2006
Balance at End 15,259 22,418 32,615 41,648 58,385
Annual Growth 21.4% 46.9% 45.5% 27.7% 40.2%
LKR MNS
2002 2003 2004 2005 2006
Pawning Portfolio 15,259 22,418 32,615 41,648 58,385
State Sector Balances 30,129 26,003 25,720 17,579 40,560
Private Sector Balances 73,099 72,588 81,874 98,512 124,446
Annual Report 2006 ~ People’s Bank 85

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Average Interest
Earning Assets 164,238 178,103 198,204 234,757 280,781
Non Performing Loans
LKR MNS
2002 2003 2004 2005 2006
NPL Value 23,105 21,721 19,715 17,418 15,951
NPL Ratio 19% 18% 14% 11% 7%
86
People’s Bank ~ Annual Report 2006

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Net Interest Income 8,305 10,335 10,573 11,597 15,807
Foreign Exchange Gain 343 421 495 506 487
Capital Gain on
Treasury Bills & Bonds 517 950 698 269 154
Fees and Commission 1,492 1,564 1,679 1,856 2,198
Other Income 245 304 260 556 863
Total Net Revenue 10,903 13,575 13,705 14,784 19,509
LKR MNS
2002 2003 2004 2005 2006
Net Interest Income 8,305 10,335 10,573 11,597 15,807
2002 2003 2004 2005 2006
Average Interest Spread 6.9% 5.1% 4.5% 4.3% 4.5%
Annual Report 2006 ~ People’s Bank 87

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Total Net Revenue 10,903 13,575 13,705 14,784 19,509
Total Non Funded Income 2,598 3,240 3,132 3,187 3,702
LKR MNS
2002 2003 2004 2005 2006
Inward Remittances 24,178 27,661 33,704 44,965 47,024
88
People’s Bank ~ Annual Report 2006

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Staff Cost 4,899 6,780 7,304 7,572 10,344
Premises &
Equipment Cost 1,342 1,331 1,587 1,760 2,252
Administration &
Overheads Cost 1,994 1,012 1,472 1,738 2,443
Total Cost 8,235 9,123 10,362 11,070 15,038
2002 2003 2004 2005 2006
Cost/Income Ratio (%) 75.3 66.3 73.1 72.7 73.8
LKR MNS
2002 2003 2004 2005 2006
Salaries &
Remuneration 2,919 3,465 3,239 3,378 4,264
Retirement Benefits
to Staff & Pensioneers 425 860 1,219 1,690 2,514
Other staff Cost 1,555 2,454 2,846 2,503 3,565
Total Staff Related Cost 4,899 6,780 7,304 7,572 10,344
Annual Report 2006 ~ People’s Bank 89

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Retirement Benefits to
Staff & Pensioneers 425 860 1,219 1,690 2,514
LKR MNS
2002 2003 2004 2005 2006
Dividend on GOSL
Bonds 572 572 572 572 498
PAYE Tax 203 258 342 8 139
VAT 59 639 1,085 1,231 2,063
Corporate Tax (218) - 377 1,263 922
Special Levy - - 100 150 600
Other Indirect Taxes 844 (28) 25 34 38
Total Contribution 1,459 1,441 2,500 3,259 4,260
LKR MNS
2002 2003 2004 2005 2006
Risk Weighted Assets 61,351 83,487 90,790 93,487 117,954
90
People’s Bank ~ Annual Report 2006

Financial Review 2006 (Contd.)
2002 2003 2004 2005 2006
Return on Assets 0.90% 1.11% 0.98% 1.11% 1.03%
Return on Risk
Weighted Assets 2.57% 2.55% 2.30% 2.97% 2.68%
Profit per Employee
(LKR Mns) 0.15 0.21 0.22 0.29 0.33%
Number of Employees 10,834 10,145 9,592 9,531 9,645
Annual Report 2006 ~ People’s Bank 91

Financial Review 2006 (Contd.)
LKR MNS
2002 2003 2004 2005 2006
Electricity 121 141 164 181 234
Rent 183 182 204 219 247
Advertising 333 161 355 378 483
Stationery 149 150 163 174 211
Telephone,Data Coms,
Telex etc. 132 126 134 166 200
Property,Plant &
Equipment 435 563 831 695 1,822
Postage & Courier Services 87 84 86 94 110
Insurance 73 69 78 82 76
Outsourced Labour Services 41 53 70 100 183
Transport,fuel & Vehicle etc. 48 61 66 86 131
Maintenance 251 262 432 411 385
Comparative Review of Contribution to Key Stake Holders
LKR MNS
2002 2003 2004 2005 2006
Interest Paid to Deposit
Customers 13,074 9,531 8,896 12,418 15,622
Payments to GOSL 1,459 1,441 2,500 3,259 4,260
Payments to Staff 4,697 6,010 6,217 6,802 8,919
Payments to Suppliers
of the Bank 3,164 2,221 2,872 3,072 4,736
Total 22,394 19,203 20,484 25,552 33,573
92
People’s Bank ~ Annual Report 2006