Stability and sustainability underpin HNB Q1 results
View(s):HNB recorded a Profit After Tax (PAT) of Rs.4.7 billion during the first quarter of 2021 while Profit Before income Tax (PBT) amounted to Rs.5.5 billion. At Group level, PBT and PAT were at Rs.5.9 billion and Rs. 4.8 billion, respectively, the bank said in a media announcement.
Commenting on the results, Managing Director/CEO of HNB – Jonathan Alles said: “HNB has demonstrated resilience, strength and stability during a year of unprecedented disruption. We are grateful for the complete trust and support of our customers, investors and other stakeholders throughout this time. We provided moratoria under three phases while granting working capital finance out of Central Bank schemes and our own funds.”
He said that more than a year after the pandemic, it is unfortunate that there is a severe rise in COVID-19 cases. “All of the lessons that we have learned over the past year will be put to the test. While progress has been made in terms of vaccinations, the economic impact of this latest wave of COVID-19 infections will hinge on how effectively we as a nation are able to rally together to control the spread of the virus,” he said according to the statement.
Profit Before Taxes (PBT) amounted to Rs.5.5 billion and was subjected to the reduced income tax charge of 24 per cent in comparison to the 28 per cent tax charge that was applicable previously. Total assets of the group increased to Rs.1,388 billion as at March 31, 2021.
Exchange rate volatility and movements during the period, led to substantial revaluation gains on swaps and forward agreements. Swap costs were also lower relative to the corresponding quarter of 2020 as swap premiums declined in line with Dollar interest rates.
Accordingly, the bank recorded a net exchange gain of Rs.1.9 billion which was a 53 per cent YoY improvement compared to Q1 2020, the bank said.