HNB delivers robust performance earning 54% pre tax profit

GROWTH: Hatton National Bank (HNB), has ended another year of robust performance with solid improvements in key financial indicators.

Commenting on the audited statements released for year ended December 31 2006, HNB’s Managing Director Rajendra Theagarajah said: “Team HNB has pursued a path of implementing selected strategies designed to meet the set of challenges we identified as critical for delivering superior value to our Stakeholders, during the last twelve months with a unified focus and vigour”.

As per the audited results released on February 19, 2006, Hatton National Bank, its subsidiaries and associate companies recorded a significant growth of 54% in Pre tax profit this year, compared to Rs 2,008 million-last year standing at Rs 3,095 million. The bank alone recorded a pre tax profit of Rs 3,019 million which is a 63% growth over the previous year.

Post tax profit attributable to the Group crossed the important milestone of Rs 2 billion to record Rs 2,276 million compared to Rs 1,795 million in 2005. The bank’s after-tax profit too recorded a 34% increase to Rs 2,220 million despite a charge of Rs 799 million for corporate taxes.

Group Turnover increased by Rs 5 billion to reach Rs 23.2 billion crossing an important Rs 20 billion milestone. Growth in Net Interest Income (26%) and Fee & Commission Income (8%) contributed towards a healthy growth in Net Income of 21%.

Foreign Exchange contributed Rs 792 million recording a healthy increase of 22% over 2005.

The continued focus on cost management has led to operating costs (including provision for bad and doubtful debts, and bad debt write-offs) increasing by only 11.5% during the year despite inflation reaching 19% in 2006.

A notable achievement was that the provision for bad and doubtful debts decreased by a massive 47%.