Aug 04, 2009 (LBO) – Sri Lanka’s Hatton National Bank (HNB) said group net profit shot up 76 percent to 996 million rupees in the June 2009 quarter from a year ago as interest margins improved but loan growth slowed.
The balance sheet showed a steep 330 percent increase in holdings of government securities to 1.6 billion rupees as at June 30, 2009 in the trading account
Total performing loans and advances fell eight percent to 156 billion as at June 30, 2009 from December 31, 2008 while total deposits grew six percent to 201 billion rupees in the same period and total assets grew five percent to 274 billion rupees. Total income was up 11 percent to 10.6 billion rupees, the bank said in a stock exchange filing.
Interest income went up 13 percent to 8.98 billion, while interest expenses grew at a slower eight percent to 5.4 billion allowing net interest income to grow faster at 22 percent to 3.6 billion rupees.
Interest margin at bank level rose to 5.39 percent as at June 30, 2009 from 5.24 percent as at December 31, 2008 while return on equity rose to 16.84 percent from 16.50 percent over the same period.
Non-interest income was stagnant at 1.6 billion with foreign exchange income falling 11