HNB Group reports Rs 5.84 bln post-tax profit for 9 month period

HNB has recorded 15 per cent growth in post- tax profits to Rs. 5.34 billion during the 9 months ended September 2013, up from Rs. 4.63 billion during the corresponding period in 2012.

Group post- tax profits improved by 17 per cent to Rs. 5.84 billion over the corresponding period in 2012, the bank said in an announcement on its latest results position.

Interest income of the bank grew by 24 per cent to Rs. 42.05 billion due to a 14 per cent year on year (y-o-y) expansion in its loan book while interest expense rose by 31 per cent largely on account of the y-o-y growth in its deposit base.

Commenting on the performance, HNB Chairperson Dr. Ranee Jayamaha said that, “despite sluggish market conditions that prevailed during the year, the bank was successful in recording an impressive growth in Net Interest Income ( NII) notwithstanding a drop in net interest margins”.

Operating expenses of the bank fell by 3 per cent to Rs. 10.22 billion in the current period owing to the winding up of the Employee Share Benefit Trust ( ESBT) scheme as per directions of the Colombo Stock Exchange during the second quarter.

Pre-tax profits for the bank improved by 12 per cent to Rs. 7.47 billion from Rs 6.64 billion recorded as at end of Q3 2012, while the pre- tax profits for the group grew by 13 per cent to Rs. 8.01 billion compared to Rs 7.06 billion during the corresponding period of 2012. The group companies, HNB Assurance PLC, Acuity Partner (Pvt) Ltd and Sithma Development Ltd also contributed towards this growth.