HNB Group pre tax profits soar 65% to Rs. 1.925 billion in nine months

Hatton National Bank (HNB) continues its impressive comeback by recording a 65% rise in pre-tax profits to Rs 1.925 billion for the nine months to September 2006.

Commenting on the performance, HNB's Managing Director/Chief Executive Officer Rajendra Theagarajah said "Our Management Team has focused vigorously a path in balancing business growth with profitability, improving productivity, managing costs and enhancing asset quality. This has contributed towards exceptional performance and we are delighted".

Net interest generated from interest sensitive assets has increased by 30%. The nine months have also seen the entire operating expense bill of Rs 5.21 billion being met by Net interest income from Core banking activity. Net Income including foreign exchange, commission income and investment income grew by 22% during the nine months.

HNB has maintained good control over expenses with operating costs increasing by 19%. The 35% rise in post tax profits to Rs. 1.36 billion has been achieved with a growth in assets of 12% during the nine months to Rs. 187 billion. Focus on "profitable Balance sheet growth" has contributed towards improved return and productivity of the bank's asset base.

The bank managed to maintain its Return on Assets on an annualised basis above 1.0% during this period as well.