HNB 2Q boosted by new loans, operational efficiencies
Backed by the strong growth in loans and operational efficiencies, Sri Lanka’s second largest private sector lender in terms of assets, Hatton National Bank PLC (HNB), reported solid performance for its April-june quarter (2Q18), the interim financial accounts released to the Colombo Stock Exchange showed.
However, the banking group had to allocate hefty provisions for possible bad loans, as experienced by the entire banking industry, largely due to the depressed economic situation in the country.
The HNB group reported earnings of Rs.4.5 billion for the quarter under review, up from Rs.3.4 billion reported for the same period, last year. This translates into profit growth of 32 percent year-on-year.
The earnings per share for the period improved to Rs.18.12, from Rs.15.87.
The net interest income for the period rose 14 percent YOY to Rs.12.8 billion, as the interest income rose 9 percent YOY to Rs.28.1 billion and the interest expenses increased at the lower pace of 5 percent YOY to Rs.15.3 billion.
The net fee and commission income rose by 6 percent YOY to Rs.2.4 billion.
The bank, which has an asset base of little over Rs.1 trillion, gave Rs.57 billion in new loans during the six months ended June 30, 2018 (1H18), which translates into a growth of 9 percent.