HNB records Group PBT of Rs. 38.7 Bn for 9M pays, Rs. 25 Bn as tax
HNB Group recorded a PAT of Rs 23.7 billion growing by 26% YoY, while the Bank’s Profit After Tax increased by 34% YoY to Rs 22.2Bn for the nine months ended September 2024.
Chairman of Hatton National Bank, Nihal Jayawardene, stated that “having experienced five years of extreme volatility and unprecedented challenges, Sri Lanka has witnessed macro-economic stability during the year We believe, that the completion of the external debt restructuring as announced, as well as progression in the reform agenda, will boost investor confidence, auguring well for the country and the banking sector”.
Acting Chief Executive Officer of Hatton National Bank Damith Pallewatte, added that “Sri Lanka’s key macro variables continued to move in the right trajectory during the first nine months of the year.”
“However, at bank level, these variables resulted in mixed financial outcomes. The overall improvement in the operating environment created a conducive environment for businesses and individuals leading to better credit growth and debt serviceability by the borrowers.”
Decline in AWPLR by nearly 50% compared to last year and remaining at an average level of 10% for the first 9 months directly reflected in the loan yields as the loan book reprised at lower rates leading to a considerable 25% decline in Gross Interest Income for the period.
Bank’s efforts to minimize the impact of interest rate volatility, resulted in a 10% YoY growth in Net Fee and Commission income despite trade income being relatively lower compared to the previous year with the normalizing of the trade tariff to pre-crisis levels. The growth in fee income was largely driven by higher cards and digital transactions in line with the efforts to drive a cashless economy,
The support extended to customers to revive their businesses, concerted efforts on collection and the overall improvement in economic activity enabled the Bank to record superior asset quality compared to the industry.
The total impairment charge for the nine months amounted to Rs 3.2 Bn, compared to Rs 32.4 Bn for the same period in 2023. The impairment charge for the previous period included an amount of Rs 25 Bn on account of Bank’s investments in international sovereign bonds (ISBs).
As of 30 September 2024, the Bank’s gross loans and advances which saw a drop in the first quarter recorded a net growth of Rs 91.1 Bn since, reaching Rs 1.1 Tn.The Bank’s deposit base continued to grow significantly, reaching Rs 1.62 Tn, driven by a remarkable increase of Rs 79.9 Bn in LKR CASA over the nine months of 2024.
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