HNB records group pre-tax profit of Rs.38.7 Bn for 9-mths’24
View(s):HNB Group’s post-tax profit (PAT) rose by 26 per cent Y-on-Y to Rs.23.7 billion for the nine months ended September 2024.
In a statement issued by the bank, Nihal Jayawardene, Chairman of Hatton National Bank PLC, commenting on the performance, said: “Having experienced five years of extreme volatility and unprecedented challenges, Sri Lanka has witnessed macro-economic stability during the year. We believe, that the completion of the external debt restructuring as announced, as well as progression in the reform agenda, will boost investor confidence, auguring well for the country and the banking sector”.
Damith Pallewatte, Acting CEO HNB added: “Sri Lanka’s key macro variables continued to move in the right trajectory during the first nine months of the year. However, at bank level, these variables resulted in mixed financial outcomes. The overall improvement in the operating environment created a conducive environment for businesses and individuals leading to better credit growth and debt serviceability by the borrowers. However, a steep drop in market rates impacted both yields from the loans and advances and investment portfolio negatively exerting pressure on interest margins. While strengthening of the LKR against the USD resulted in improved economic activity on the imports front, this also resulted in the bank having to recognise an exchange loss on the revaluation of foreign exchange reserves. Nonetheless, in this backdrop, the bank’s core focus remained on sustainable growth through responsible lending, mobilisation of low-cost deposits, growing non-interest income and improving asset quality”. The bank’s efforts to minimise the impact of interest rate volatility, resulted in a 10 per cent YoY growth in Net Fee and Commission income despite trade income being relatively lower compared to the previous year with the normalising of the trade tariff to pre-crisis levels. The growth in fee income was largely driven by higher cards and digital transactions in line with the efforts to drive a cashless economy,
The support extended to customers to revive their businesses, concerted efforts on collection and the overall improvement in economic activity enabled the bank to record strong asset quality compared to the industry. The total impairment charge for the nine months amounted to Rs.3.2 billion, compared to Rs.32.4 billion for the same period in 2023.
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