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HNB achieves 14 per cent growth
First quarter results recently published on Hatton National Bank shows an impressive performance by the Bank recording an income of Rs 9.68 Bn., a growth of 14% compared to the corresponding period last year, ample testimony for the Bank’s resilience on the face of adversity.
Despite unfavorable global as well as local economic conditions the Bank continued to perform well in the first quarter of 2009. HNB’s operating profit from ordinary activities before tax and financial VAT surpassed Rs 1.7 Bn mark, recording a growth of 10% over 2008. Operating Profit after tax for the period is Rs 763.1 Mn, Which is a 2% growth from Rs.751.3 Mn in 2008. The Banks’ provision for the Financial VAT and Income tax for the first quarter was Rs. 937 Mn. High taxation on financial services continues to be a major obstacle for the growth in the industry.
Net interest income grew from Rs. 3.0 Bn. in first quarter 2008 to Rs. 3.4 Bn. in the first quarter 2009 recording a growth of 15%. This was primarily facilitated by the growth in the Banks’ interest earning assets and the effective management of the net interest margins.
During the first quarter the Bank’s deposit base grew by an impressive Rs. 5.0 Bn, demonstrating the confidence the public has placed on HNB during times of uncertainty in the financial sector. The asset base which stands at Rs. 261.0 Bn. too recorded an increase of Rs. 5.7 Bn. during the same period.
HNB Group income too has increased by 13% to Rs 10.1 Bn. with post tax profits marginally decreasing by 4% to Rs 711.8 Mn due to the adverse market conditions affecting the performances of Bank’s subsidiaries which are into stock brokering and investment banking activities. However the Banks insurance subsidiary HNB Assurance PLC recorded a impressive post tax profit growth of 12% to reach Rs. 15.9 Mn. Investments made in the two exchange houses namely Majan Exchange LLC in Oman and the Delma Exchange based in Abu Dhabi are still in the infancy stage and yet to contribute to the group profit. The units have shown promise and further plans have been laid out to move in to other countries with higher expatriate concentration.
