Sri Lanka’s Hatton National Bank March net up 73-pct

ECONOMYNEXT – Profits at Sri Lanka’s Hatton National Bank group, which also has an insurance unit, rose 73 percent to Rs3.3 billion in the March 2016 quarter from a year earlier, but was hit by Rs3.35 billion capital loss on its bond portfolio.

The group reported earnings of Rs8.42 per share for the quarter.

At bank level, interest income rose 29 percent to Rs15.5 billion, interest expenses increased at a faster 39 percent to Rs8.1 billion, but the bank also grew net interest income 19 percent to Rs7.3 billion.

Fee and commission income was up 29 percent to RS1.7 billion. The bank provides Rs34 million for specific loan losses and Rs68 million for general provisions, down from Rs407 million a year earlier.

The bank reported capital losses of Rs3.3 billion in its bond portfolio, which is adjusted against equity.

During the March quarter, group loans grew 3 percent to Rs522 billion. The bond portfolio grew 5 percent to Rs83.5 billion.

Group deposits grew only 1 percent to Rs527 billion. Asset growth was financed by repurchase deals, which grew from Rs16 billion to Rs30 billion.

Group assets grew 5 percent to Rs792 billion, but net assets fell 2 percent to Rs76 billion with bond losses.

Tier I capital adequacy fell to 10.05 percent in March from 10.5 percent in December, but total capital adequacy, which include debt, rose to 13.48 percent from 12.7 percent.
 

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