ECONOMYNEXT - Profits at Sri Lanka's listed Hatton National Bank grew 32 percent from a year earlier to 4.5 billion rupees in the June 2018 quarter on improving interest margins and lower bad loan provisioning, interim results showed.
The bank, popularly known as HNB, reported earnings of 18.12 rupees a share, interim results filed with the Colombo Stock Exchange showed.
The share closed unchanged at 220.70 rupees on Wednesday.
Earnings were 18.49 rupees a share in the six months to end June 2018 on a profit of 9.1 billion rupees.
In the June quarter, net interest income grew 14 percent to 12.8 billion rupees as interest income rose 9 percent to 28.1 billion rupees and interest expenses grew a slower 5 percent to 15.3 billion rupees.
The bank's loan book grew 9 percent from six months earlier to 695.7 billion rupees and deposits grew 6 percent to 741.3 billion rupees.
Interest margins improved to 4.49 percent in the quarter, up from 4.25 percent six months earlier.
Bad loans provisioning fell 27 percent from a year earlier to 1 billion rupees in the June quarter.
Fee and commission income rose 6 percent to 2.4 billion rupees.
Trading losses fell 17 percent to 1.1 billion rupees and other operating income rose 34 percent to 1.8 billion rupees.
Net losses on trading increased on account of higher depreciation of the rupee against US dollar from a year earlier, the bank said.
Insurance premium income from a subsidiary HNB insurance rose 17 percent to 1.7 billion rupees.
Personnel costs grew 6 percent to 3 billion rupees and other expenses rose 17 percent to 3 billion rupees.
Gross assets of the bank grew 5 percent to 1 trillion rupees, with equity attributable to shareholders grew 113.2 billion rupees.
Tier 1 capital adequacy was 12.48 percent, compared to the regulatory minimum of 8.875 percent.
Total capital adequacy was 15.22 percent, above the regulatory minimum of 12.875 percent.
"As we move in to the second half of 2018, we are fully cognizant of the macro-economic challenges, slow-down in economic growth and market liquidity constraints," HNB's Chief Executive Jonathan Alles said in a statement.
"These primary challenges and the need for additional capital to meet the enhanced regulatory requirements and taxes, continue to hamper growth in the banking sector.
"As such, we remain optimistic of sustained policy consistency which will create an environment for growth," he said.
The bank, popularly known as HNB, reported earnings of 18.12 rupees a share, interim results filed with the Colombo Stock Exchange showed.
The share closed unchanged at 220.70 rupees on Wednesday.
Earnings were 18.49 rupees a share in the six months to end June 2018 on a profit of 9.1 billion rupees.
In the June quarter, net interest income grew 14 percent to 12.8 billion rupees as interest income rose 9 percent to 28.1 billion rupees and interest expenses grew a slower 5 percent to 15.3 billion rupees.
The bank's loan book grew 9 percent from six months earlier to 695.7 billion rupees and deposits grew 6 percent to 741.3 billion rupees.
Interest margins improved to 4.49 percent in the quarter, up from 4.25 percent six months earlier.
Bad loans provisioning fell 27 percent from a year earlier to 1 billion rupees in the June quarter.
Fee and commission income rose 6 percent to 2.4 billion rupees.
Trading losses fell 17 percent to 1.1 billion rupees and other operating income rose 34 percent to 1.8 billion rupees.
Net losses on trading increased on account of higher depreciation of the rupee against US dollar from a year earlier, the bank said.
Insurance premium income from a subsidiary HNB insurance rose 17 percent to 1.7 billion rupees.
Personnel costs grew 6 percent to 3 billion rupees and other expenses rose 17 percent to 3 billion rupees.
Gross assets of the bank grew 5 percent to 1 trillion rupees, with equity attributable to shareholders grew 113.2 billion rupees.
Tier 1 capital adequacy was 12.48 percent, compared to the regulatory minimum of 8.875 percent.
Total capital adequacy was 15.22 percent, above the regulatory minimum of 12.875 percent.
"As we move in to the second half of 2018, we are fully cognizant of the macro-economic challenges, slow-down in economic growth and market liquidity constraints," HNB's Chief Executive Jonathan Alles said in a statement.
"These primary challenges and the need for additional capital to meet the enhanced regulatory requirements and taxes, continue to hamper growth in the banking sector.
"As such, we remain optimistic of sustained policy consistency which will create an environment for growth," he said.
No comments:
Post a Comment