HNB looks forward to strong post-election economy with ‘enabling’ budget

Hatton National Bank PLC ( HNB) this week reported a ‘ strong’ performance in the first half of 2015 with profit after tax increasing by 27.5 per cent to Rs. 4.3 billion, saying it was looking forward to a strong post-election economy.

Commenting on the first half results, HNB Managing Director/ CEO, Jonathan Alles said “HNB has contin- ued its robust performance notwithstanding a lacklustre macro economic environment, stifled business and investment climate challenging the national and corporate growth aspirations. With elections around the corner, it is envisaged that a strong economic and development strategy will be put forward supported by an enabling budget that would propel the nation with development plans laid out to stimulate and grow existing and new industries while containing bureaucracy and wastage leading to more opportunities for all Sri Lankans".

Net Interest Income grew by 3.9 per cent to Rs. 12.9 billion in a low interest environment driven by the growth in CASA deposits by 28.6 per cent. The impact on interest income from the decline in rates was mitigated largely by a 21.4 per cent growth in the loan book.

“The improvement in profit after tax by 27.5 per cent to Rs. 4.3 billion also enabled the bank to boost its ROA and ROE. The HNB group also performed well in Q2 2015 with all subsidiaries, including the newly acquired HNB Grameen Micro Finance Ltd and Acuity Partners contributing strongly to post a growth in profit before tax of 23.1 per cent to Rs. 6.5 billion and a post-tax profit growth of 18 per cent”.