HNB delivers sustainable business performance
View(s):Hatton National Bank (HNB PLC) has reported a Profit Before Tax (PBT) of Rs. 10.9 billion and a Profit After Tax (PAT) of Rs. 9.1 billion for the first half of 2021, the bank said in a media release, noting that this was an improvement from the first half of 2020.
Group profits also improved accordingly (from the same period last year), with PBT and PAT at Rs. 12 billion and Rs. 9.8 billion respectively.
The loan book recorded a growth of 8.6 percent over the past 12 months to June 2021.
Fee and Commission income continued its uptrend in 2021 increasing to Rs. 4.4 billion, a 27.7 percent YoY growth over the corresponding six months in 2020, a period in which considerable disruption to business activities were witnessed. Card and trade businesses were key contributors towards this growth, while fees from digital banking also improved significantly driven by higher level of adoption.
Said Nilanth De Silva, Chairman of HNB PLC: “The operating environment has continued to be uncertain with a multitude of challenges for the nation and the industry for almost two years. The re-emergence of higher numbers of COVID-19 positive patients and the fast spread of the Delta variant, threaten macro fundamentals and industry dynamics. We greatly appreciate the efforts expended by the authorities in rapidly rolling out the vaccinations across the country which is the most sustainable solution in winning the war against COVID-19.”
The bank recorded an exchange gain of Rs. 3.4 billion during 1H 2021 compared to Rs.1.5 billion in the first six months of 2020 due to the depreciation of the rupee and lower swap volumes.
The Gross NPA ratio of the bank improved during the first six months of 2021 to 4.25 percent in comparison to a deterioration of nearly 50 bps witnessed during 1H 2020. The bank made an impairment charge of Rs. 6.3 billion for the 1H 2021 compared to the impairment of Rs. 9.1 billion in the corresponding period of 2020. “The higher impairment charge in the previous year was largely on account of the rising NPAs and the Sovereign downgrade in April 2020,” the release said.