May 13, 2009 (LBO) – Sri Lanka’s Hatton National Bank (HNB) said its group net profit for the March quarter fell four percent to 712 million rupees from a year ago. Total assets of the HNB group were 268 billion rupees, up two percent from a year ago. Total group income rose 13 percent to 10 billion rupees in the three months ended March 31, 2009, HNB said in a stock exchange filing.
Gains from investments in government securities helped prop up profits.
Interest income went up 15 percent to 8.9 billion rupees while interest expenses rose 16 percent to 5.5 billion rupees, with net interest income going up by 15 percent to 3.4 billion rupees.
Interest income on loans and advances rose 12 percent while interest income on other interest earning assets, mainly investments in government treasuries, shot up 37 percent.
HNB’s specific provision for bad loans rose 34 percent to 192 million rupees in the quarter.
Total performing loans and advances as at March 31, 2009 were 160 billion rupees, down five percent from a year ago