Income for the period increased by 27% to 27.0 Bn. with net interest income increasing by 12% to Rs.9.07 Bn. Effect of high interest rates were reflected in the interest income and expenses which grew by 25% and 34% respectively despite moderate growth in the loan book and deposits.

Non interest income improved by 43% during the period mainly from the increase in other income by approximately Rs. 1.0 Bn. significant contribution of the other income was capital gains derived from the sale of two fully owned subsidiaries HNB Securities (Pvt) Ltd, and HNB Stock Brokers (Pvt) Ltd., to the newly formed Acuity Partners (Pvt) Ltd., which is a joint venture with DFCC Bank. Additionally the Bank was in receipt of Dividend income of over Rs. 500 Mn.

Efficient cost management enabled the Bank to maintain the non interest expenses at mere 8% increase, a remarkable achievement considering the high inflationary conditions prevailed during the period.

Banks pre tax and VAT cost to income ratio improved to 53.70% from 59.3% for the period and the pre tax return on average assets to 2.07% from 1.99% in December 2007.

Financial VAT and Corporate taxes increased to Rs. 1.32 Bn. and 1.13 Bn. an increase of 44% and 21% respectively in comparison with the corresponding period in 2007.