HNB 9 month group PAT at Rs. 14.5 bn
View(s):Hatton National Bank PLC (HNB) has reported a Profit after Tax (PAT) of Rs. 14.5 billion at group level for the nine months to September 2018, up by 23 per cent YoY. The bank’s PAT for the period amounted to Rs. 13.1 billion, growing by 21 per cent YoY.
Like many other banks, HNB was also challenged by the growing number of non-performing loans (NPA). “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 per cent from 2.9 per cent reported in June, albeit remaining below industry norms. The resulting increase in provisioning requirements led to impairment on facilities deemed individually significant rising by 49 per cent YoY to just under Rs. 1.5 billion for the period ending September whilst collective impairment charges rose to Rs. 2.1 billion, from Rs. 1.3 billion in the same 2017 period,” the bank said in a media release.
Prudent asset and liability management saw 15.5 per cent YoY growth to Rs. 34.2 billion in Net Interest Income (NII) for the period, despite challenging market conditions.
Net losses from trading which reflecting principally the revaluation of forex swaps, reduced significantly by 55 per cent to Rs. 1.2 billion from a higher depreciated rupee and low volumes of swaps compared to the previous year.
Commenting on the bank’s performance, Jonathan Alles, MD/CEO of HNB, stated that: “We are once again pleased with our performance amidst challenging market and economic conditions. In the current backdrop we will continue our intense focus on NPA management, mobilising CASA and diligently forging ahead with digital transformation while continuing to enhance the overall value proposition to all our stakeholders.” All group companies were profitable during the period and contributed to group profitability with pre-tax profit rising to Rs 21.5 billion.