Jonathan Alles MD & CEO | Rienzie Arseculeratne hairman

HNB Group continued its outstanding performance with Group PBT improving to Rs 10 bn in 1H 2016. The Bank’s PBT for the period improved toRs9.1 bnby 50%while the Bank’s PAT grew to Rs 6.4 bn by 48.6%Y-o-Y. The Bank’s operating profit before VAT, NBT and corporate taxes increased to Rs 10.8 bn, by 48.3% Y-o-Y, while the total tax charge for 1H 2016 was Rs. 4.4 bn. Accordingly, the Bank recorded a PAT of Rs. 6.4 bn resulting in a ROA of 1.7% and a ROE of 19.4% for 1H 2016. The asset base of the bank grew by 24.8% Y-o-Y and 9.4% during the first six months of the year to reach Rs. 793.1 bn.
The Bank’s interest income grew by 34.5% Y-o-Y to Rs 33.5 bn, driven primarily by the 23% Y-o-Y growth in the loan book. The Bank also grew its deposits by 20.8% over the last 12 months and maintained a rupee CASA ratio of over 40% amidst the industry-wide shift witnessed towards higher yielding deposits in the backdrop of rising interest rates. Accordingly the Bank grew its net interest income by 23.5% to Rs 15.9 bn.