Hatton National Bank (HNB) exceeded Rs.5 billion in operating profit before taxes for the third quarter of 2008 while post tax profits increased to Rs.2.56 billion, a 47% growth in post tax profits over the same period in 2007.
A press release stated that income for the period increased by 27% to Rs.27 billion with net interest income increasing by 12% to Rs.9.07 billion.
HNB said the effect of high interest rates were reflected in the interest income and expenses which grew by 25% and 34% respectively despite moderate growth in the loan book and deposits. Group turnover increased by 23% to Rs.28.1 billion with profit after tax increasing by 19% to Rs.2.14 billion.
Non interest income improved by 43% during the period, mainly from the increase in other income, by approximately Rs.1 billion. The press release stated that a significant contribution of the other income was capital gains derived from the sale of two fully owned subsidiaries HNB Securities (Pvt) Ltd, and HNB Stock Brokers (Pvt) Ltd., to the newly formed Acuity Partners (Pvt) Ltd., which is a joint venture with DFCC Bank. Additionally the Bank was in receipt of dividend income of over Rs.500 million.
HNB's Chief Financial Officer Mr. Nihal Kekulawela said that the bank has shown ‘conviction and courage’ to perform against all odds during difficult times and the real test will be to sustain and move forward in a back drop of financial and economic downturn both locally and internationally.