Feb 26, 2010 (LBO) – Sri Lanka’s Hatton National Bank (HNB) said group net profits for the 2009 financial year rose 58 percent to 4.5 billion rupees with gains from investments in government securities while the loan book shrank. The bank said in a stock exchange filing that group December quarter profits shot up 156 percent to 1.8 billion rupees from a year ago.
Basic earnings per share for the year were 19.03 rupees compared with 12.02 rupees the previous year.
Interest income rose six percent to 34.8 billion rupees, with interest income on loans stagnant while there was a 38 percent rise in income from other interest earning assets
Interest expenses were stagnant at 20.3 billion rupees allowing net interest income to rise 16 percent to 14.6 billion rupees during the year.
Non-interest income rose three percent to 5.7 billion rupees with forex income down sharply but fee income growing
HNB showed a reversal of 22 million rupees on general loan provisioning in 2009 compared with a provision of 484 million in 2008 while specific provisions rose eight percent to 730 million rupees.
Performing loans fell four percent to 162 billion rupees as at December 31, 2009 from the beginning of the year and ba