Tough Quarter

Feb 28, 2014 (LBO)- Profits at Sri Lanka’s Hatton National Bank fell 38 percent to 1.8 billion rupees in the December 2013 quarter amid shrinking net interest income, interim accounts showed. The group reported earnings of 4.73 rupees per share. In the year to December the group reported earnings of 19.20 rupees per share on total profits of 7.6 billion rupees, which were down 4 percent.

HNB shares closed up 30 cents at 151.40 rupees, Wednesday.

In the December quarter interest income rose 3 percent to 13.9 billion rupees, but interest expenses rose at a faster 8 percent to 7.9 billion rupees, shrinking net interest expense 4 percent to 5.9 billion rupees.

Fee income was up 14 percent to 1.0 billion rupees.

The group provided 478 million rupees for loan losses in the quarter.

HNB loans grew 16 percent to 352 billion rupees in the year to December 2013. Financial instruments available for sale rose 8 percent to 64 billion rupees.

Deposits grew 13 percent to 385 billion rupees.

Gross assets grew 14 percent to 525 billion rupees and net assets grew 11 percent to 32.7 billion rupees.