Sri Lanka’s HNB net up 6-pct in Sept quarter

ECONOMYNEXT – Profits at Sri Lanka’s Hatton National Bank group rose 6 percent to 2.6 billion rupees in the September 2015 quarter from a year earlier, helped by credit growth, interim accounts showed, while there were also bond losses not charged to profits.

The group reported earnings of 6.62 rupees per share for the quarter. In the nine months to September it reported earnings of 17.28 rupees per share on total earnings of 6.9 billion rupees, which grew 13 percent.

Interest income rose 14 percent to 14.3 billion rupees, interest expenses rose at a slower 7 percent to 6.9 billion rupees, allowing net interest income to grow 21 percent to 7.45 billion rupees.

Fee and commission income rose 30 percent to 1.45 billion rupees. Net gains from trading rose 480 percent to 1.32 billion rupees. Other operating income was down 72 percent to 510 million rupees.

HNB said trading gains rose from foreign exchange hedge contracts while other income fell with rupee depreciation.

Deposits grew 19 percent to 505 billion rupees. Borrowings from banks grew 50 percent to 65 billion rupees.

Chief Executive Jonathan Alles said that the bank wrapped up a 35 million dollar loan from DEG in the third quarter and signed another deal for 50 million from Proparco, both foreign lenders.

HNB grew its loans 17 percent to 469 billion rupees in the nine months to December. Financial Investments available for sale also rose 17 percent to 80 billion rupees. The bank took a 1.48 billion rupee fair value loss on its available-for-sale financial assets, which was is not charged to profits.

Group net assets grew 4 percent to 63 billion rupees. Gross assets grew 17 percent to 704 billion rupees.

Group capital adequacy fell to 13.04 percent in September from 14.83 percent in December amid strong loan growth but remains above the regulatory minimum.  (Colombo/Nov13/2015)

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