Hatton National Bank PLC (HNB) continued its growth momentum to post a group profit before VAT & NBT of Rs 20.7 Bn while the PBT and PAT improved to Rs 16.8 Bn and Rs 11.8 Bn respectively for the first nine months of the year while group assets crossed Rs 1 Tn.
PBT at Bank level surpassed Rs 15 Bn and PAT was recorded at Rs 10.9 Bn.
Interest income of the Bank grew by 33.5% year on year (yoy), supported by a 14.9% yoy growth in advances. The 14.9% yoy growth in current account and savings account (CASA) deposits to Rs. 247.2 Bn, enabled to improve the net interest income of the Bank by 18.7% yoy to Rs 29.6 Bn.
The interest income was complimented by fee and commission income which grew by 20.4% yoy on a net basis, adding Rs 6.1 Bn to the Bank’s topline. Credit card business, trade finance and guarantee commission continued to be key contributors towards this growth.
An increase in swap rates as well as the volume of swaps led to the ‘trading loss’ increasing to Rs. 2.8 Bn during the first nine months of 2017 compared to the loss of Rs 1.3 Bn in the corresponding period of the previous year.
The initiatives adopted in the recent years towards operational excellence continued to bear fruit with HNB being able to contain the increase in total operating expenses to 7.5% yoy.
The upward revision in VAT to 15% from 11% in 2016, led to an increase of 29.6% in VAT & NBT charges for the period.
This resulted in the Bank’s PBT growth being constrained to 6.3%, leading to a PBT of Rs 15.4 Bn for the period.
Commenting on the performance, MD/CEO of HNB, Jonathan Alles said, “HNB continues to deliver sound performance, notwithstanding the challenging conditions. We are humbled by the prestigious local and international accolades and are truly grateful to our stakeholders for their unstinted patronage”.
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