Record Numbers

Mar 07, 2010 (LBO) – Sri Lanka’s Hatton National Bank group December quarter net profits were up 156 percent from a year earlier to 1,830 million rupees on loan recoveries and wider margins, while full year profits grew 58 percent to 4,483 million rupees. HNB reported earnings per share of 7.76 rupee for the quarter and 19.02 for the full year.

In the December quarter interest income fell 7 percent to 8,318 million rupees, interest expenses fell at a faster 18 percent to 4,497 million rupees, allowing net interest income to grow 11 percent to 3,821 million rupees.

Fee income grew 7 percent to 5,154 million rupees with foreign exchange income falling 37 percent to 200 million rupees and unspecified other income increasing 6 percent to 1,132 million rupees.

Profits were boosted by net recoveries of 338 million up from loan losses of 276 million a year earlier.

Gross loans and advances fell 4 percent to 174.4 billion rupees, non performing loans fell 8.0 percent to 12.4 billion rupees and performing loans also fell 5 percent to 162.0 billion rupees.

“During the first three quarters of the year, loan growth witnessed a considerable contraction,” chief executive Rajendra Theagarajah told shareholder in the annual report.