HNB posted resilient financial results during the 1H 2020 amid the unprecedented disruptions of COVID-19 pandemic with group PAT (post-tax profit) for 1H2020-21 increasing by 6.8 % YoY to Rs.5.5 billion while bank level PAT declined by 7% YoY to Rs. 4.5 billion.
“Sri Lanka’s performance in managing the transmission of COVID-19 has been outstanding. The health impact has been largely contained and the economic impact of the pandemic will remain a challenge in the near term, given the depressed global conditions it has spawned. To address these economic challenges, the Government has taken bold steps to support the affected by relaxing Monetary Policy in an effective way to revive economic activity, and extending debt moratoriums to those affected - measures that may need further support from the Government given that the recovery will most likely be a protracted one across most sectors, both locally and globally. Consequently, the medium term economic recovery will be closely correlated with the pace at which the COVID 19 pandemic is managed globally,” HNB Chairman, Dinesh Weerakkody said in a media release issued by the bank at the weekend.
As a consequence of the low interest rate regime, the prime lending rate (AWPLR) reduced by 130 bps from December 2019, compounded by low demand for credit. This in turn impacted 1H interest income which declined 8.8% YoY to Rs. 53.8 billion. Interest expenses also declined by 5.2% YoY to Rs.31.4 billion leading to a drop in Net Interest Income (NII) by 13.3% YoY to Rs.22.4 billion.
The restrictions on non-essential imports, overall decline in exports and marked drop in Card spends due to lifestyle changes resulting from the pandemic, drove Net Fee Income down by 22.2% YoY to Rs.3.5 billion. However, a strong surge in demand for digital banking services enabled an increase in fees from digital channels.
“During the lock-down period, we supported both customers as well as merchants to carry out transactions through our digital payment channels including SOLO, MoMo and IPG. We moved a further step forward by launching AppiGo in May 2020 to support businesses to rapidly set up their own e-commerce presence. Our breakthrough Payments App, HNB SOLO was enhanced with added features and this continues to be an ongoing process. In August, we also upgraded our core- banking system to the latest version of Finacle, enabling us to provide a far superior experience to our customers,” HNB MD/CEO Jonathan Alles said.
Gross loans remained flat when compared against December 2019 at Rs. 772.5 billion. Notwithstanding the unprecedented circumstances during the year, HNB’s total deposits grew by Rs.55.3 billion to Rs.865.3 billion while the low cost CASA base grew by an impressive Rs.34.4 billion to Rs. 319.1 billion during 1H 2020.
The HNB Group recorded a PAT of Rs.5.5 billion for the period under review.
Mr. Ali Sabri Rahim, a Member of Parliament (MP) for Puttalam District whom an open warrant had been issued, attended a public ceremony at Al Aksha National School in Kalpitiya today (16) as the special guest of honor.
All Ceylon Makkal Congress MP Ali Sabri Raheem had been arrested by Kalpitiya police after he surrendered to the police today morning.
Senior DIG Nilantha Jayawardena has been sent on compulsory leave pending disciplinary investigation over his failure to prevent the Easter Sunday bombings.
The 22nd amendment to the constitution dealing with the term of the President has been gazetted by order of President Ranil Wickremesinghe.
Auspicious times widely followed by candidates keeping with traditions will be taken into consideration by the Election Commission in fixing the date and time for the conduct on the Presidential polls.
The Cabinet of Ministers has granted policy approval to change the wording “exceeding six years” in paragraph (b) of Article 83 of the Constitution to “exceeding five years” with reference to the President’s tenure.
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