HNB Records 6.9 billion PAT in First Quarter of 2023

Following a turbulent year marred by the country facing its most profound economic crisis post-independence, Hatton National Bank made a resilient start to 2023, posting a PBT of 10.7 billion rupees, up 80 percent YoY, while PAT stood at 6.9 billion rupees in the first quarter, growing 42 percent YoY. The Group made a consolidated PBT and PAT of 11.3 billion rupees and 7.3 billion rupees, respectively.

Aruni Goonetilleke, Chairperson of Hatton National Bank, stated that "Despite the country still reeling from last year’s economic, social and political disruptions, the Bank recorded a solid performance for the first three months of 2023, reflecting our steadfast focus, prudent decision making and agility in the face of changes. Although uncertainties prevail, the positive developments on the country’s macroeconomic front are encouraging. I want to reiterate our unwavering commitment to safeguarding the interest of our stakeholders and supporting the economic recovery."

Relatively high-interest rates compared to Q1 2022 facilitated the Bank to report a net interest income of 31.6 billion rupees during 1Q 2023, reflecting an 87 percent YoY growth. With higher card volumes and increased adoption of our digital services, net fee and commission income grew by 31 percent YoY to 4.2 billion rupees.

The positive sentiments brought on by the IMF program and the improved foreign exchange liquidity gave way to a part relaxation of foreign exchange controls. This led to the appreciation of the Sri Lankan Rupee by approx. 10 percent during the three months up to March 2023. This resulted in the Bank recording a net exchange loss of approximately two billion rupees for the quarter due to revaluation losses.