Sunday Observer Online


Sunday, 14 August 2016





Marriage Proposals
Government Gazette

HNB Group PBT tops Rs 10b

HNB Group continued its outstanding performance with Group PBT improving to Rs10Bn in 1H 2016. The Bank's PBT for the period improved toRs9.1 Bnby 50%while the Bank's PAT grew to Rs 6.4 Bnby 48.6%yoy.

Chairman,Rienzie Arsecularatne

The Bank's interest income grew by 34.5% yoyto Rs 33.5 Bn, driven primarily by the 23% yoy growth in the loan book.

The Bank also grew its deposits by 20.8% over the last 12 months and maintained a rupee CASA ratio of over 40% amidst theindustry-wide shift witnessed towards higher yielding deposits in the backdrop of rising interest rates. Accordingly the Bank grew its net interest income by 23.5% to Rs 15.9 Bn.

The net fee and commission income recorded an increase of Rs691Mn which is a growth of 26% yoy. The improvement in card business, trade finance as well as loan administration fees contributed towards this impressive growth in net fee income.

HNB's relentless efforts in recoveries and continuous improvement in underwriting standards has enabled the Bank to improve its NPA ratio quarter on quarter. As at end of 1H 2016, the NPA ratio improved to 2.25% compared to 3.24% recorded in 1H 2015 and from 2.41% in 1Q 2016.

The Bank's operating expenses increased by 11.9% largely owing to revisions effected through the collective agreements. However our continuous focus on cost optimization enabled to record a cost to income ratio of 45.2% for 1H 2016, which is nearly 300 bps lower than the corresponding period last year.

The Bank's operating profit before VAT, NBT and corporate taxes increased to Rs 10.8 bn, by 48.3% yoy, while the total tax charge for 1H 2016 was Rs 4.4bn. Accordingly the Bank recorded a PAT of Rs 6.4 Bnresulting in a ROA of 1.7% and a ROE of 19.4% for 1H 2016. The asset base of the bank grew by 24.8% yoy and 9.4% during the first six months of the year to reach Rs 793.1 Bn.

Commenting on HNB's performance, MD/CEO of HNB Jonathan Alles stated that "we are delighted withour remarkable 1H performance which was driven by robust growth in core banking. This exceptional performance is attributed to the unwavering commitment of my high performance team and I am truly grateful to each and every member of Team HNB for espousing transformational change. Our continuous investments in developing world class talent, adopting state of the art technology, best in class systems and processes as well as our focus on building lasting bonds with our customers will enable us to reach greater heights in the near future". Mr. Alles further stated that "while thanking our loyal customers for their continued patronage of HNB business, we hope that the envisioned fiscal reforms and enactment of sound monetary policy will lead to strong economic growth and stability. We at HNB remain focused and well positioned to be a key partner in the development of the nation through our strategic direction."

The HNB Group also recorded outstanding performance with Group PAT growing by 54% yoy to reach Rs 7 Bn. All group companies contributed to the performance with HNB Grameen leading the way. Group assets grew by 25.3% yoy to reach Rs. 828.9bn by end of 1H 2016.

During the first six months, HNB has been recognized by many renowned international and local institutions for excellence in diversebusiness and support functions. In early 2016 HNB was recognized by the prestigious 'Asian Banker Magazine' as the 'Best Retail Bank in Sri Lanka' for the 8thtime.

The Bank's Islamic Finance arm was bestowed upon the 'Deal of the Year' Silver Award and the 'Entity of the Year' Bronze Award at the Islamic Finance Forum of South Asia organized by UTO EDU Consult.



eMobile Adz

| News | Editorial | Business | Features | Political | Security | Sports | Spectrum | World | Obituaries | Junior |


Produced by Lake House Copyright 2016 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor