Sri Lanka’s HNB profits up 75-pct in March quarter
COLOMBO (EconomyNext) – Sri Lanka’s Hatton National Bank said profits rose 75 percent to 1.9 billion rupees in the March 2015 quarter, helped by net interest income and lower loan loss provisions.
The group reported earnings of 4.75 rupees per share for the quarte amid tax uncertainties.
The firm estimated a 2.0 billion rupee charge on a retrospective tax imposed by Sri Lanka’s new administration, the has not yet been passed.
Interest income fell 3 percent to 15.8 billion rupees amid lower interest rates, but interest expenses fell at a faster 6 percent to 12.9 billion rupees, allowing net interest income to rise 9 percent to 6.9 billion rupees.
The bank said loans grew 12 percent in the March quarter, up 13 percent from a year earlier. Loans grew 3 percent by end March from end December, which was slower than the December quarter, the bank told shareholders in a statement.
At bank level, gross non-performing loans rose to 3.6 percent of advances up from 3.16 percent a quarter earlier.
Deposits grew 16.5 percent during the quarter.
General loan loss provisions fell to 408 million rupees from 1.8 billion rupees a year earlier, with lower losses on gold loans.
Fee and commission income rose 9 percent to 1.46 billion rupees.
Group gross assets grew 4 percent to 624 billion rupees. Net assets fell 2 percent to 68.2 billion rupees.
At standalone bank level, net assets fell 2 percent to 59.5 billion rupees from a quarter earlier, with a dividend payment.
Tier I capital fell to 44.5 billion rupees from 47.2 billion rupees. Total capital adequacy ratio fell to 13.7 percent from 14.8 percent as loans also grew, but remains above the statutory 10 percent.