Hatton National Bank PLC (HNB) reported a Profit after Tax (PAT) of Rs 14.5 Bn at Group level for the nine months to September 2018 recording a growth of 23% YoY, while the Bank’s PAT for the period amounted to Rs 13.1 Bn growing by 21% YoY.
Prudent asset and liability management facilitated a 15.5% YoY growth to Rs 34.2 Bn in Net Interest Income (NII) for the period, despite challenging market conditions.
Net Fee and Commission Income grew moderately by 10.8% YoY to Rs 6.8 Bn in the period to September with Credit Cards, Trade Finance & Remittance businesses contributing to more than 50% of the fee and commission income.
Net losses from trading which reflecting principally the revaluation of forex swaps, reduced significantly by 55% to Rs 1.2 Bn from a higher depreciated rupee and low volumes of swaps compared to the previous year. Other operating income too witnessed a sizable growth of 23% to Rs 3.4 Bn as a result of exchange gains on position revaluations and higher exchange income from forex transactions.
Reflecting on macro and industry conditions which have precipitated delays across the industry in collections; the Bank’s Gross NPA ratio as at the end of the third quarter increased to 3.1% from 2.9% reported in June, albeit remaining below industry norms.
Bank made a Profit Before Tax (PBT) of Rs 19.3 Bn during the period while the Rs 13.1 Bn PAT generated a Return on Assets (ROA) of 1.76% and Return on Equity (ROE) of 15.57% for the period.
Total advances grew to Rs 717.8 Bn, supported by a nine month growth of 10.7% in the deposit base to Rs 776.3 Bn. The Bank remains strongly capitalized with Tier I Capital at 13.02% and Total Capital ratio at 15.62%, 415 bps and 275 bps above the respective regulatory requirements.
Jonathan Alles, MD/CEO of HNB stated that “In the current backdrop we will continue our intense focus on NPA management, mobilizing CASA and diligently forging ahead with digital transformation while continuing to enhance the overall value proposition to all our stakeholders.
Moreover, as a foremost financial institution in Sri Lanka we are committed to establish ourselves as a true ‘partner in progress’ to the nation”.
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