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Sri Lanka’s Hatton National Bank PLC, last week, said it has recorded a robust growth in Q1 2016 with the Bank’s profit after tax (PAT) growing by 68% YOY to Rs 3.1 bn while Group Profit after Tax (PAT) improved to Rs 3.5 bn, an increase of 73% from Q1 2015.

Strong growth of 26% YOY in the Bank’s advances portfolio resulted in a 29% YOY growth in interest income whereas the deposit base recorded a YOY growth of 22% while maintaining a healthy CASA ratio of 43.5%. Accordingly, the Bank’s net interest income grew by 19.2% YOY to Rs 7.4 bn. Meanwhile, HNB’s operating costs increased by 11.5% YOY to Rs 4.4 Bn mainly due to the revisions to collective agreements resulting in a higher personnel cost.

The HNB Group also performed well with all Group companies contributing to the growth in profit after tax to Rs 3.5 Bn.HNB General Insurance business which was impacted due to high claims last year, turned around during Q1 2016 while the microfinance subsidiary HNB Grameen Finance Ltd recorded superior results.