HNB records sustainable growth in 2024
View(s):Commenting on the performance in 2024, Nihal Jayawardena, Chairman of HNB PLC said, “With the improving economic landscape in 2024 providing the impetus for renewed business confidence and financial sector expansion, HNB leveraged its strong foundation to prove its leadership in the local banking industry.”
The bank recorded an impressive 11.3 per cent YoY growth in loans and advances during 2024. Despite the growth in loan book, interest income of the bank experienced a YoY decline of 21.6 per cent, primarily due to the gradual relaxation of monetary policy, which led to the average yields on loans and government securities dropping by nearly 45 per cent in 2024 compared to 2023. However, the decrease in net interest income was moderated towards the latter part of the year, as the reduction in interest expenses outpaced the drop in income, owing to lower rates and the focus on driving CASA deposits.
The appreciation of the Sri Lankan rupee against the dollar resulted in an exchange loss of Rs.2.9 billion.
On a prudent basis the bank recognised a total impairment of Rs.11.5 billion on loans and receivables.
With the International Sovereign Bond (ISB) restructure in December 2024, the bank opted for the ‘Local option’, which included 30 per cent of the ISB exposure being exchanged to LKR bonds, with the balance 70 per cent in USD bonds being subject to a 10 per cent haircut.
Damith Pallewatte, Managing Director /CEO of HNB said: “Focus on supporting all key sectors of the economy, efforts to combat pressure on margins, and aggressive focus on asset quality contributed towards the sound performance in our core banking operations.”
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