Hatton National Bank PLC (HNB) announced a robust performance for the first quarter of 2024, recording a Profit Before Tax (PBT) of Rs 9.8 billion and Profit After Tax (PAT) of Rs 6.2 billion. Despite challenges posed by the pandemic, HNB’s Group level PBT and PAT stood at Rs 11.2 billion and Rs 7.4 billion, respectively.
The Central Bank of Sri Lanka’s monetary policy adjustments aimed at economic revival resulted in a significant drop in the AWPLR by 50%, impacting interest income, which declined by 20% year-on-year to Rs 60.2 billion. However, interest expense decreased at a slower pace, contributing to a 30% year-on-year decline in net interest income.
Chairman of HNB, Nihal Jayawardene, expressed satisfaction with the country’s recovery trajectory and anticipated a successful conclusion to the external debt restructuring program, benefiting the banking sector and bolstering growth prospects. Despite a slight decrease in total non-interest income to Rs. 2 billion, HNB remained committed to supporting customers’ business revival efforts, as reflected in a lower incremental impairment charge compared to the previous year.
Acting CEO Damith Pallewatte highlighted the impact of interest rate reductions on interest margins and the positive outlook on credit demand with the AWPLR currently below 10%. With total assets exceeding Rs 2 trillion at the Group level, HNB remains steadfast in maintaining its position as a leading financial institution driving economic growth.