Hatton National Bank profits flat in Sept 2020 quarter
ECONOMYNEXT – Profits at Sri Lanka’s Hatton National Bank group, which also has an insurance unit was flat at 3.46 billion rupees in the September 2020 quarter, helped by lower tax charges and lower trading losses, interim accounts showed.
HNB reported earnings of 6.71 rupees per share for the quarter and 16.42 rupees for the nine months, on total profits of 8.6 billion rupees, which was up 2 percent.
Net fee income fell 13 percent to 2.14 billion rupees.
Interest income fell 9 percent to 27 billion rupees in the September 2020 quarter, interest expenses fell 9 percent to 15.1 billion rupees and net interest income fell 8 percent to 12.5 billion rupees.
Loans and advances were flat at 770.23 billion rupees, from 769 billion in December.
Impairment provisions rose 35 percent to 2.82 billion rupees.
The banks non-performing loan ratio went up to 6.51 percent from 5.91 percent.
HNB said 11.5 billion rupees to a State Enterprise which was classified as non-performing in December 2019 was regularized in October 2020, and the ratio was 5.06 percent without it.
The bank had also provided 427 million rupees for a dollar sovereign bond after a downgrade in September 2020, though the policy is to follow Fitch Ratings.
Financial assets grew 89 percent to 253 billion rupees from 133.9 billion rupees.
Deposits grew 947 billion rupees.
Insurance premium income rose 35 percent to 2.82 billion rupees. Trading losses of 1.9 billion rupees fell to 257 million.
Gross assets grew 11 percent to 1.24 billion rupees at bank level. Net assets grew 5 percent to 133.3 billion rupees.
At bank level Tier I capital improved to 14.6 percent from 14.57 percent. Total capital requirement was 18.33 percent, up from 18.28 percent in December. (Colombo/Nov13/2020)