HNB Group Post-tax profits grew to Rs 6.23Bn while the Bank recorded a PAT of Rs 5.69 Bn during the 9 months ended September 2014. It is commendable that this performance was achieved despite declining margins and lower loan growth witnessed in the early part of the year.
Commenting on the performance over the period, Dr Ranee Jayamaha, Chairperson of HNB PLC stated that “the industry witnessed the much anticipated acceleration in credit growth during the third quarter and HNB too recorded a strong growth reinforcing its lead position”.Third quarter saw net loans and advances of HNB increasing by Rs 14.7Bn driven by concerted sales efforts in corporate, SME and retail segments. On a year on year basis, net loans and advances of the Bank recorded a 9.3% growth surpassing the industry growth rate for the period, in spite of a drop of Rs 24Bn in the pawning portfolio of the Bank.During the 9 months period HNB also successfully improved its Current and Savings Account (CASA) ratio to approximately 44% from 40% as at end of December 2013 through a focused approach on mobilizing low cost deposits.
The Bank recorded an 8% increase in total operating income to Rs 23.9Bn for the 9months ended September 2014, despite a marginal drop of 3% in net interest income as a result of interest margins coming under pressure.
Jonathan Alles Managing Director / CEO of HNB PLC stated that “through our strategic intent on enhancing fee income and operational efficiency we successfully improved our cost to income ratio to 48% during the period under review, notwithstanding a drop in interest margins. Going forward, we believe that the investments made to upgrade technology and to improve the electronic banking platform as well our continuous focus on streamlining processes would result in realising greater benefits and together with the expectation of credit growth to pick up in the coming months, we would be able to record far superior results”.
www.dailynews.lk
Commenting on the performance over the period, Dr Ranee Jayamaha, Chairperson of HNB PLC stated that “the industry witnessed the much anticipated acceleration in credit growth during the third quarter and HNB too recorded a strong growth reinforcing its lead position”.Third quarter saw net loans and advances of HNB increasing by Rs 14.7Bn driven by concerted sales efforts in corporate, SME and retail segments. On a year on year basis, net loans and advances of the Bank recorded a 9.3% growth surpassing the industry growth rate for the period, in spite of a drop of Rs 24Bn in the pawning portfolio of the Bank.During the 9 months period HNB also successfully improved its Current and Savings Account (CASA) ratio to approximately 44% from 40% as at end of December 2013 through a focused approach on mobilizing low cost deposits.
The Bank recorded an 8% increase in total operating income to Rs 23.9Bn for the 9months ended September 2014, despite a marginal drop of 3% in net interest income as a result of interest margins coming under pressure.
Jonathan Alles Managing Director / CEO of HNB PLC stated that “through our strategic intent on enhancing fee income and operational efficiency we successfully improved our cost to income ratio to 48% during the period under review, notwithstanding a drop in interest margins. Going forward, we believe that the investments made to upgrade technology and to improve the electronic banking platform as well our continuous focus on streamlining processes would result in realising greater benefits and together with the expectation of credit growth to pick up in the coming months, we would be able to record far superior results”.
www.dailynews.lk
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