Negative growth in imports and exports in first half 2013, HNB says
View(s):The HNB banking group this week said profits of the bank rose in the first half of this year during a period when imports and exports have shown negative growth in the country
In a media statement, the bank said its’ net fee and commission income increased to Rs. 2 billion, up 9 per cent from 2012 despite a “drop in trade business in the country with both exports and imports witnessing a negative growth compared to the previous year”.
As per profits, the bank’s post-tax profit rose by 12 per cent to Rs. 3.14 billion for the first half of 2013 against Rs 2.8 billion during the corresponding period in 2012.
The group’s post-tax profit improved by 15 per cent to Rs 3.4 billion.
Commenting on the performance, Dr. Ranee Jayamaha, Chairperson of HNB said in a media release that “the market challenges that prevailed in the first quarter continued into the second quarter as well. Nevertheless we were able to record strong performance for the first six months of this year. We believe that the market conditions would improve in the second half”.
Interest income recorded a growth of 31 per cent from first half 2012 due to a 13 per cent year on year expansion in its loan book and relatively higher rates of interest.
The bank said net gains/losses from trading mainly represent the revaluation of off balance sheet swap position which was taken to hedge the on balance sheet open positions created by some of the foreign borrowing over the last 15 months. The appreciation of the rupee resulted in these swaps showing a loss in the first quarter while it reflected a gain during the second quarter due to the local currency depreciating. The corresponding impact on the on balance sheet position is reflected in other operating income.
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