Hatton Profits

Nov 11, 2011 (LBO) – Profits of Sri Lanka’s Hatton National Bank rose 32 percent to 1,380 million rupees in the September 2011 quarter, from a year earlier, helped by a lower tax rate and provision reversals, interim accounts showed. The group reported earnings of 3.79 for the quarter. For the nine months to September HNB reported earnings of 10.69 per share on profits 3.89 billion rupees in interim accounts filed with the stock exchange.

The bank said interest income rose 15 percent to 8.66 billion rupees in the quarter, interest expenses rose at a faster 22 percent to 4.35 billion rupees and net interest income grew at a slower 9 percent to 4.2 billion rupees.

Performing loans grew 24 percent to 244 billion rupees in September from December 2010 and non-performing loans grew 17 percent to 12.93 billion rupees.

Loan loss provisions of 253 million were reversed.

Fee income fell 5 percent to 1.91 billion rupees with forex income falling 25 percent to 241 million rupees, in the nine months.

Value added tax on financial serves will 40 percent to 339 million rupees after a reduction in the rate, helping the bottom line.

HNB group gross assets rose 17 percent to 379 billion rupees and net assets grew 29 per