Hatton National Bank PLC (HNB) has reported robust and sustainable performance for the fiscal year 2023, excelling in various aspects including liquidity, asset quality, capital, efficiency, and profitability amidst prevailing global and local economic uncertainties.
In terms of financial performance, HNB recorded a notable increase in profit after tax (PAT), with the bank achieving a PAT of Rs. 20.35 billion compared to Rs. 14 billion in the previous year 2022. Similarly, the Group PAT stood at Rs. 23.6 billion, a significant improvement from Rs. 15.7 billion recorded in the preceding year. Reflecting this strong performance, the Board of Directors has proposed a final dividend of Rs. 8 per share, comprising a cash dividend of Rs. 4 per share and a scrip dividend of Rs. 4 per share for both voting and non-voting shares.
Nihal Jayawardene, Chairman of HNB, commended the bank’s leadership and staff for their dedication and resilience amidst challenging times. He acknowledged the proactive approach taken by the Board to navigate uncertainties in the operating environment, which contributed to the bank’s overall robust performance.
The bank’s interest income experienced a year-on-year growth of 37.2%, reaching Rs. 284.1 billion, despite a decline in the Average Weighted Prime Lending Rate (AWPLR) during the last two quarters of the year. Moreover, net fee and commission income increased by 4.4%, primarily driven by higher volumes in credit cards, improved remittances, and increased adoption of digital banking services.
In response to economic conditions and potential risks, HNB increased its impairment cover up to 52% on a prudent basis, with an additional provision of Rs. 38 billion during the year. This proactive approach, coupled with improvements in asset quality, contributed to a net stage 3 ratio improvement to 3.76% from 4.90% in September 2023.
Jonathan Alles, Managing Director/CEO of HNB, emphasized the bank’s commitment to sustainable growth and supporting customers through challenging times. Alles highlighted the bank’s efforts to understand and address customer needs, including providing financial support during the pandemic and restructuring loans to keep businesses afloat.
Looking ahead, HNB remains aligned with the country’s needs and is committed to delivering shared prosperity to Sri Lankans while supporting the transition to a low-carbon economy. The bank’s growth strategy focuses on key sectors such as tourism, exports, renewable energy, healthcare, education, information technology, local manufacturing, and agriculture.
In conclusion, HNB’s strong financial performance, coupled with its commitment to sustainable growth and customer support, positions the bank as a key player in driving economic resilience and prosperity in Sri Lanka.