Sri Lanka’s HNB net up 41-pct in June quarter amid income growth

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Aug 11, 2016 (LBO) – Group profits at Sri Lanka’s Hatton National Bank surged 41 percent to 3.3 billion rupees in the June 2016 quarter from a year earlier amid strong income growth, interim accounts showed.

The group reported basic earnings of 8.56 rupees per share for the quarter, up from 6.19 rupees per share from a year earlier. The share last traded at 220.20 rupees.

In the June quarter, interest income rose 39 percent to 19.4 billion rupees and fee, commission income rose 23 percent to 1.8 billion rupees.

Interest expenses rose 53 percent to 9.8 billion rupees and fee, commission expenses fell 5 percent to 38 million rupees.

Individual impairment charges dropped 117 percent to 35 million rupees for the quarter while collective provisions also dropped 85 percent to 93 million rupees.

In segmental analysis, banking segment rose 33 percent and leasing, hire purchase business rose over 172 percent in the six months to June.

Insurance segment fell 11 percent in the six months to June while property segment results fell 7 percent.

The bank’s Gross Non-Performing Advances Ratio stood at 2.25 percent by the end of quarter against 2.43 percent reported as at 31 December 2015.

Return on Equity stood at 19.66 percent, up from 16.77 percent from December last year.

Leasing and hire purchase business segment of the group has reported 1.1 billion rupees of total revenue in the March quarter against 868 million rupees recorded a year earlier.

Total revenue in the insurance segment has increased to 1.5 billion rupees from 1.3 billion rupees last year.

Return on Assets has improved to 2.36 percent as at the end of the financial year from 2.34 percent reported last year.

The consolidated statements cover the Bank and its subsidiaries HNB Assurance, Sithma Development (Pvt) Ltd, HNB Grameen Finance and group’s interest in Joint Venture Acuity Partners (Pvt) Ltd.