HNB records 37% growth in PAT
In the backdrop of a slowdown in economic growth resulting in reduced
credit growth and volatile market conditions, the pre-tax profit of HNB
Group improved by 25.5% to Rs 10.65 billion while Group net profit after
tax recorded a year on year growth of 32.4% to Rs 8.25 billion.
Dr. Ranee Jayamaha |
Rajandra Theagarajah |
Commenting on the performance during the year 2012, Dr. Ranee
Jayamaha, Chairperson of HNB PLC said “ In the first half of the year,
amidst difficulties and challenges brought by the severe and complex
international environment and despite volatile domestic markets, Hatton
National Bank improved its operating strategies whilst retaining a
healthy growth. In the second half, the bank proactively adapted itself
to policy changes as well as financial market conditions and moved
forward to seize opportunities in the real economy.”
With the new accounting standards (SLFRS / LKAS) issued in line with
the International Financial Reporting Standards becoming effective from
January 1, 2012 the bank prepared its annual financial statements in
line with the new standards as well as the guidelines issued by the
Central Bank of Sri Lanka. However, in accordance with the second option
under the ruling issued by the Institute of Chartered Accountants of Sri
Lanka, the interim financial statements have been prepared based on the
previous accounting standards that prevailed prior to January 1, 2012
for comparative purposes and the following is based on these previous
accounting standards.
The bank's interest income for the reporting period grew by 42.2%,
prompted by increase in yields coupled with growth in interest earning
assets. Interest cost mirrored this upward movement with a perceptible
increase of 58.8%. Higher deposit rates, deposit growth as well as
conversion of low cost deposits to fixed deposits at higher rates pushed
the interest costs upwards. Nevertheless, the bank witnessed a growth of
25.3% in net interest income amounting to Rs. 20.5 billion during the
financial year.
Increase in fee income remained a key strategic priority during the
year, as per the bank's 3 year strategic plan. Efforts in this regard
yielded positive results with the Bank increasing its commission income
by 36.5% in 2012 against that of the previous financial year.
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