HNB pre tax profits grow 71% to Rs 1.14b in six months

Hatton National Bank (HNB), Sri Lanka's premier private sector commercial bank continues its impressive comeback by recording a 71% rise in pre-tax profits to Rs. 1.14 billion for the six months to June 2006.

Commenting on the performance, HNB's Managing Director/Chief Executive Officer Rajendra Theagarajah said "Relentless focus on profitability, managing costs, and enhanced asset quality has contributed towards this performance. The entire team at HNB is binding well and working as a cohesive driving force contributing towards such exceptional performance".

Net interest generated from interest sensitive assets has increased by 29%. The six months have also seen the entire operating expense bill of Rs. 3.36 billion being met by Net interest income from Core banking activity. Net Income including foreign exchange, commission income and investment income grew by 23% during this six months period.

HNB has maintained good control over expenses with operating costs increasing by 18%. The 32% rise in post tax profits to Rs. 772 million has been achieved with a growth in assets of 7% during the six months to Rs. 178 billion. Focus on "profitable Balance sheet growth" has contributed towards improved return and productivity of the bank's asset base. Return on Assets on an annualised basis reached 1.3% which was a remarkable improvement from 0.68% in December 2004.

The Bank continues its quest to improve asset quality.