ECONOMYNEXT – Profits at Sri Lanka’s Hatton National Bank, which also has an insurance unit, grew 37 percent from a year ago to 11.74 billion rupees, helped by loan loss reversals and depreciation gains, despite a fall in net interest income, interim accounts show.
HNB group reported earnings of 20.54 rupees for the quarter. In the six months to June HNB reported earnings of 39.25 rupees on total profits of 22.4 billion rupees, which grew 42 percent.
Net fee income and commission income grew 20 percent to 5.7 billion rupees with card use and digital transactions contributing, the bank said.
Rupee depreciation had helped boost forex income to 2.8 billion rupees in the half year.
At standalone bank level, net interest income fell 8 percent to 50.1 billion rupees in the June quarter with interest income falling 8 percent to 50.1 billion rupees and interest expenses also falling 8 percent to 28.2 billion rupees.
Loans grew 12 percent to 1,186 billion rupees from December to June, debt instruments rose 12 percent to 828 billion rupees.
Up to March loans had grown to 1,078 billion rupees and debt securities to 755 billion rupees.
There was a 4.6 billion rupee reversal of loan loss provisions, compared to an 814 million rupee provision last year, helping boost profits.
Impaired Stage 3 loan loss ratio was 1.82 percent, down from 1.88 percent, amid loan growth and provision reversals.
Deposits grew 9 percent to 1,864 billion rupees. Up to March deposits were 1,723 billion rupees.
Personnel expenses rose 18 percent to 7.1 billion rupees.
HNB gross assets at bank level grew 9 percent to 2,267 billion rupees from December.
Net assets grew 6 percent to 245 billion rupees.
Tier 1 capital was 18.42 percent, down from 19.59 percent. Total capital adequacy was 22.46 percent, down from 23.9 percent, higher than the required 13.5 percent. (Colombo/Aug13/2025)