HNB reports resilient 1Q results

Rajendra Theagarajah

First quarter results recently published on Hatton National Bank shows an impressive performance by the Bank recording an income of Rs 9.68 bn., a growth of 14% compared to the corresponding period last year, ample testimony for the Bank’s resilience on the face of adversity.
Despite unfavourable global as well as local economic conditions the Bank continued to perform well in the first quarter of 2009. HNB’s operating profit from ordinary activities before tax and financial VAT surpassed Rs 1.7 bn mark, recording a growth of 10% over 2008. Operating Profit after tax for the period is Rs 763.1 mn, Which is a 2% growth from Rs.751.3 mn in 2008. The Banks’ provision for the Financial VAT and Income tax for the first quarter was Rs. 937 mn. High taxation on financial services continues to be a major obstacle for the growth in the industry.
Net interest income grew from Rs. 3.0 bn. in first quarter 2008 to Rs. 3.4 bn. in the first quarter 2009 recording a growth of 15%. This was primarily facilitated by the growth in the Banks’ interest earning assets and the effective management of the net interest margins.

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