HNB Supports Economic Revival and Business Recovery

Hatton National Bank (HNB) recorded a Profit Before Tax (PBT) of 9.8 billion rupees during the first quarter of 2024, while Profit After Tax (PAT) amounted to 6.2 billion rupees.

At the Group level, PBT and PAT were at 11.2 billion rupees and 7.4 billion rupees, respectively.

The substantial monetary policy loosening adopted by the Central Bank of Sri Lanka to revive the economy resulted in a drop in AWPLR by 50 percent from 21.40 to 10.69 percent during the 12 months up to March 2024. This caused interest income to decline by 20 percent YoY to 60.2 billion rupees. Interest expense declined at a slower pace of 13 percent YoY to 38.2 billion rupees due to the lag effect in repricing deposits. The Bank also provided sizable interest rebates to support the most vulnerable sectors of the economy. As a result, the net interest income declined by 30 percent YoY during 1Q 2024.

Nihal Jayawardene, Chairman of Hatton National Bank, stated, “We are pleased to note that the country is making strong and steady progress in its recovery path as reflected in macroeconomic indicators. I believe that the external debt restructuring program will also be concluded soon, safeguarding the interest of the banking sector and enabling the country to bolster its growth prospects.”