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HNB Group records Rs 18.8 Bn in PAT, Bank PAT of Rs. 16.6 Bn for 9 months

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Hatton National Bank PLC posted a profit before tax of Rs 26.3 billion and a profit after tax of Rs 16.6 billion during the nine months ended September 2023. The Group recorded a consolidated PBT and PAT of Rs 29.0 Bn and Rs 18.8 Bn, respectively for the period.

Chairman of HNB PLC, Nihal Jayawardene, stated that “Sri Lanka has progressed well during the year with signs of recovery as indicated by most macro-economic variables. While we remain positive on the country’s journey ahead, as a premier bank in Sri Lanka, we are delighted to have surpassed Rs 1.5 trillion in deposits. It is noteworthy to mention that a growth of Rs 500 Bn in deposits, has been achieved since June 2021.”

The Bank’s interest income recorded a YoY growth of 63.5%, reaching Rs 220.7 Bn during the first nine months, in the background of a sharp decline in interest rates during the third quarter. Interest expense increased at a faster pace of 115% YoY, resulting in a 17.1% YoY growth in net interest income which improved to Rs 83.2 Bn.

HNB continued to maintain its asset quality well above the industry, with net stage 3 ratio at 4.9% and stage III provision cover at 50.7%. The Bank recognised a total impairment charge of Rs 32.4Bn during the first nine months of 2023, which comprised of impairment on account of loans and advances and foreign currency denominated government securities.

HNB’s cost to income ratio stood at 28.5% for the nine months, despite, operating expenses increasing by 16.1% YoY to Rs 26.5 Bn.

Managing Director /Chief Executive Officer of HNB Jonathan Alles, stated that, “As the country displays signs of recovery, we are pleased to record robust overall performance for the nine months, which outlines the proactive and prudent actions taken during adverse times.”

“We believe that the external debt restructuring programme would also be concluded soon, taking in to account the strain on the banking sector, which has incurred significant impairment charges of nearly Rs 580 Bn since 2022 and the increased effective tax rate of over 50% for the industry. Preserving banking sector stability and capital would be critical to enable banking sector to play a catalytic role in the revival of the nation and its people.”

The Bank’s total effective tax rate increased to 51.6% from 37.4% in the previous year. Bank’s asset base improved to Rs 1.86 Tn as at end September 2023.

HNB recorded Tier I and Total Capital Adequacy Ratios of 11.91% and 14.73%.

The post HNB Group records Rs 18.8 Bn in PAT, Bank PAT of Rs. 16.6 Bn for 9 months appeared first on DailyNews.

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