ECONOMYNEXT – Sri Lanka’s Hatton National Bank which also has an insurance unit said profits in the March 2025 quarter rose 48 percent to 10.6 billion rupees from a year ago, helped by net interest income growth, fees and a provision reversal.
The group reported earnings of 18.71 rupees per share for the quarter.
At bank level Hatton National Bank’s interest income fell 14 percent to 51.15 billion rupees, interest expenses fell at a faster 27 percent to 27.8 billion rupees and net interest income grew 8 percent to 23.6 billion rupees.
Loans and advances grew 1 percent to 1,078 billion rupees by March 2025, from 1,063 billion rupees in December.
Loans loss provisions were a reversal of 379 million rupees.
Stage 3 loan ratio was down to 1.82 percent from 1.88 percent.
Deposits grew to 1,723 billion rupees from 1,715 billion rupees.
Securities sold under repurchse agreements grew to 71.7 billion rupees from 26.4 billion rupees.
Placements with banks grew to 73.4 billion rupees from 41.8 billion rupees.
Fee and commission income grew 17 percent to 4.8 billion rupees.
Personnel expenses grew 22 percent to 5.6 billion rupees.
Taxes on financial services was 4.6 billion rupees up 52 percent and income taxes were grew 57 percent to 6.0 billion rupees.
On the insurance side, premium income grew 26 percent to 5.4 billion rupees. Claims and underwriting expenses grew 23 percent to 5.8 billion rupees.
Group gross assets grew to 2.35 billion rupees from 2,209 billion rupees.
Net assets were up 2 percent to 275 billion rupees. Tier I capital fell from 19.59 percent to 17.60 percent but as above the required 8 percent. Total capital adequacy was 21.89 percent down from 23.96 percent.
(Colombo/May09/2025)