HNB Group PBT in Q1 2015 tops Rs. 3 bln

Hatton National Bank PLC continued its growth momentum with Group PBT increasing by 92 per cent to Rs. 3 billion and Group PAT increasing by 79 per cent to Rs. 2 billion in Q1 2015, according to a bank media release.

Commenting on the performance, Jonathan Alles, Managing Director/CEO of HNB PLC stated that "we are pleased with the robust growth recorded during the first quarter of 2015 amidst volatile market condi- tions. This strong overall performance, amply demonstates the clear strategic focus of the bank, delivering sustainable value to all stakeholders".

The loan book grew by over Rs. 12 billion during the first 3 months of 2015 with net loans and advances recording a growth of 13 per cent YoY, despite a slowdown in overall demand for credit compared to what was witnessed during the latter part of 2014. This loan book expansion was funded through the deposit growth of over Rs. 16.5 billion during the first quarter. The bank's focus and efforts on mobilising low cost deposits despite intense competition within the industry enabled the bank to record a YoY growth of 29 per cent in the rupee CASA base with the CASA ratio improving to 47 per cent. The landmark long term loan facility of US$ 100 million obtained recently from the ADB, will further supplement the deposit growth during the year, and would assist in funding in- frastructure development in the country, boosting economic growth, the release said.

Interest income of the bank fell by 11 per cent during the period under consideration on account of the drop in interest rates while the interest expenses dropped at a faster pace due to the same and the shift towards low cost deposits as mentioned above. This enabled the bank to cushion the impact on interest margins from drop in interest rates.