HNB Group’s nine-month PAT surpasses Rs. 11 bn

Group pays Rs. 8 bn as tax



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HNB continued its trailblazing performance in 2016 with the Group’s nine month PAT growing by 54.2% to exceed Rs 11 bn. Group performance mirrored that of the Bank which reported an increase of 52.6% Year-on-Year (YoY) in profit before VAT and taxes to Rs 17.3 Bn and an increase in PAT by 48% YoY to Rs 10.1 Bn.


Core banking operations contributed strongly to HNB’s results with net interest income growing by 28.8% YoY to Rs 24.9 Bn. Growth in the Bank’s interest income was driven by robust growth of 21% YoY in assets. Despite 2016 witnessing a substantial shift towards higher yielding deposits, the Bank was able to maintain a LKR CASA ratio of 38.4%. The total deposit base grew by 16.8% YoY to Rs 580.5 Bn.


Net Fee and Commission income grew by 22.7% YoY to exceed Rs 5 Bn with credit cards and trade finance being the main contributors.


Superior credit underwriting skills and aggressive recovery efforts enabled HNB to continuously drive down its NPA ratio which, as at last September, had recorded further improvements to reach 2.18% representing a decline of 25 bps during the year and 80 bps over the last 12 months.


Relentless efforts in process efficiency and cost optimization have resulted in continuous improvement in cost to income ratio. While operating expenses grew marginally by 10.1% YoY, the cost to income ratio dropped from 48.5% in September 2015 to 43.6% as at the end of 9 months this year, representing an improvement of nearly 500 bps.


The increase in profits to Rs 10.1 Bn resulted in the Bank yet again delivering a high ROE of 19.64%, significantly higher than the 14.62% achieved in the corresponding period of the previous year.


 
 
 
 
 
 
 
 
 
 
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