Retail
Subscription
to Advertise
  • ISSUES
    • 2006 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • June 2007
        • July 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • April 2008
        • May 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • October 2008
        • November 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • April 2013
        • June 2012
        • July 2012
        • September 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • June 2018
        • July 2018
        • August 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2023
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • January 2021
        • February 2021
        • March 2021
        • April 2021
        • May 2021
        • June 2021
        • July 2021
        • August 2021
        • September 2021
        • October 2021
        • November 2021
        • December 2021
      • 2022
        • January 2022
        • June 2022
        • February 2022
        • July 2022
        • March 2022
        • April 2022
        • August 2022
        • May 2022
        • September 2022
        • October 2022
        • November 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US
No Result
View All Result
Business Today
No Result
View All Result

HNB Records Growth

0 0
0

HNB posted resilient financial results for the first half of 2020 amidst the COVID-19 pandemic. The Group PAT for 1H increased by 6.8 percent YoY to 5.5 billion rupees while the bank level PAT declined by seven percent YoY to 4.5 billion rupees.

“Sri Lanka’s performance in managing the transmission of COVID-19 has been outstanding. The health impact has been largely contained and the eco- nomic impact of the pandemic will remain a challenge in the near term, given the depressed global conditions it has given rise to. To address these economic challenges, the Government has taken bold steps to support the affected by relaxing Monetary Policy in an effective way to revive economic activity, and extending debt moratoriums to those affected measures that may need further support from the Government given that the recovery will most likely be a protracted one across most sectors, both regionally and globally. Consequently, the medium-term economic recovery will be closely correlated with the pace at which the COVID 19 pandemic is managed globally,” stated Dinesh Weerakkody, Chairman of HNB.

As a result of low interest rate regime, the prime lending rate (AWPLR) reduced by 130 bps from December 2019, compounded by low demand for credit. This in turn im- pacted 1H interest income, which declined 8.8 percent YoY to 53.8 billion rupees. Interest expenses also de- clined by 5.2 percent YoY to 31.4 billion rupees leading to a drop in Net Interest Income by 13.3 percent YoY to 22.4 billion rupees. The restric- tions on non-essential im- ports, overall declined in exports and reduced shopping, drove Net Fee Income down by 22.2 percent YoY to 3.5 billion rupees. However, a strong surge in demand for digital banking services enabled an increase in fees from digital channels.

“With the outbreak of COVID-19, we had to move rapidly to reassess our priorities and restructure operations in alignment with the ‘new normal’. Our key focus has been to sup- port customers in need, while ensuring maximum health and safety measures for our staff and customers, while maintaining stability of HNB and intensifying our pursuit of digital and tech- nological transformation. As a responsible domestic systemically important bank (D-SIB) we have supported over 80,000 customers who were affected economically during the pandemic by way of moratoriums on loan repayments during the past few months. The bank has provided working capital financing under the CBSL relief schemes and through the five billion rupees fund set up by HNB to assist affected SMEs. During the lock-down period, we sup- ported both customers and merchants to carry out transactions through our digital payment channels including SOLO, MoMo and IPG. We have also launched the AppiGo app in May 2020 to support businesses to rapidly set up their own e- commerce presence. Our breakthrough Payments App, HNB SOLO was en- hanced with added features and this continues to be an ongoing process. In August, we upgraded our core- banking system to the latest version of Finacle, enabling us to provide a superior experience to our customers,” said Jonathan Alles, MD/CEO, HNB.

With effective cost management being a key focus area under the ‘new nor- mal’, the bank recorded a decline of six percent YoY in Total Operating Ex- penses to 11.2 billion rupees in 1H 2020. The total tax charge for 1H 2020 declined by 57.1 percent YoY to 3.1 billion rupees while the bank recorded a PAT of 4.5 billion rupees, representing a decline of seven percent YoY. Gross loans remained flat when compared against December 2019 at 772.5 billion rupees.

Notwithstanding the unprecedented circum- stances during the year, HNB’s total deposits grew by 55.3 billion rupees to 865.3 billion rupees while the low cost CASA base grew by an impressive 34.4 billion rupees to 319.1 billion rupees during 1H 2020. Total Assets grew by four percent to 1.17 trillion rupees, during 1H 2020 and HNB continued to remain among the best capitalized in the industry, with Tier I Capital and Total Capital Adequacy ratios at 15.25 percent and 19.07 percent. HNB Group recorded a PAT of 5.5 billion rupees for the period. The YoY growth of 6.8 percent in group profits was driven largely by the robust performance of the primary dealership arm of the investment bank, Acuity Partners and HNB Assurance.

TweetShareShare

Business Today May 2023

Business Today

  • Privacy Policy
  • Terms & Conditions

© 2023 BT Options. All Rights Reserved

No Result
View All Result
  • ISSUES
    • 2006 to 2009
      • 2006
      • 2007
      • 2008
      • 2009
    • 2010 to 2019
      • 2010
      • 2011
      • 2012
      • 2013
      • 2014
      • 2015
      • 2016
      • 2017
      • 2018
      • 2019
    • 2020 to 2023
      • 2020
      • 2021
      • 2022
      • 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US

© 2023 BT Options. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In