Hatton National Bank PLC (HNB), Sri Lanka’s second largest private sector bank with an asset base of Rs.600 billion said its net profit for the December quarter (4Q14) surged 93 percent year-on-year (yoy) to Rs.3.65 billion.
The banking group’s net profit for FY14 rose 28 percent yoy to Rs.9.8 billion.
The earnings per share for the December quarter improved to Rs.9.09 from Rs.4.73 and for the year from Rs.19.20 to Rs.24.50.
Commenting on the performance, Chairperson, Dr Ranee Jayamaha stated that “we are very pleased to announce that the bank has once again demonstrated resilience and posted an all-round exceptional performance notwithstanding the challenging global environment, adverse impacts on the pawning portfolio and a substantial reduction in interest margins.”
The Bank recorded a strong growth of over 28 percent in Current Accounts and Savings Accounts (CASA) which supported in funding the impressive growth of over 20 percent in its loan book (excluding pawning).
The CASA ratio exceeded 45 percent in December 2014 compared to 38 percent in 2013 and helped towards cushioning the impact from the drop in interest margins during the year due to the decline in Average Prime Lending Rate (AWPLR) by approximately 600 bps and the significant drop in the pawning portfolio to 5 percent of the loan book from 13 percent as at end of 2013. Fee and commission income increased by 16.7 percent to Rs.4.9 billion for the year 2014. In addition to the growth in card acquiring business, fees from trade, guarantees and the rapid increase in the uptake of digital banking facilitated this growth in fee income.
Net gain from financial investments increased to Rs.1.4 billion, driven by profits from sale of investments and increased dividend income from the bank’s long term equity investments while the gains recorded on treasury bonds and bills contributed positively to improve the net trading position compared to the previous year.
Comments - 1
Buddhika Lokubandara Saturday, 28 February 2015 01:23 PM
Of course, the banks are making Billions while the Senior Citizens lives are ending in disaster. We urge the government to revert to the pre 2009 system of providing proper interest rates - Treasury Bills, Repo and even the Savings schemes were drawing 14% interest on the Capital Savings account established by HNB. And now their own customers are getting a paltry and pathetic amount for their savings.All these announcements on increasing interest rates to Senbior Citizens is nothing but Bullshit
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