Sri Lanka’s HNB net up 73-pct in March 2016 quarter

May 10, 2016 (LBO) – Group profits at Sri Lanka’s Hatton National Bank surged 73 percent to 3.3 billion rupees in the March 2016 quarter amid strong income growth, interim accounts showed.

The group reported basic earnings of 8.42 rupees per share for the quarter, up from 4.91 rupees per share from a year earlier.

In the March quarter, interest income rose 30 percent to 16.8 billion rupees and fee, commission income rose 29 percent to 1.9 billion rupees.

Loan loss provisions for individuals (impairment charges) dropped 64 percent to 66 million rupees for the quarter while collective provisions also dropped 83 percent to 68 million rupees.

The bank’s Gross Non-Performing Advances Ratio stood at 2.41 percent by the end of quarter against 2.43 percent reported a year earlier.

Return on Equity stood at 19.27 percent, up from 16.77 percent from previous year, the accounts showed.

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 figures cover the bank and its subsidiaries HNB Assurance, Sithma Development, HNB Grameen Micro Finance and the Group’s interest in Joint Venture Acuity Partners.