HNB records 37 % growth in post-tax profit
View(s):Pre-tax profits of the HNB Group improved by 25.5 per cent to Rs 10.65 billion while group net profit after tax recorded a year on year growth of 32.4 per cent to Rs 8.25 billion, the banking group announced this week.
The company said this came in the backdrop of a slowdown in economic growth resulting in reduced credit growth and volatile market conditions.
Dr. Ranee Jayamaha, Chairperson of HNB PLC said “In the first half of the year, amidst difficulties and challenges brought by the severe and complex international environment and despite volatile domestic markets, HNB improved its operating strategies whilst retaining a healthy growth. In the second half, the bank proactively adapted itself to policy changes as well as financial market conditions and moved forward to seize opportunities in the real economy”.
The bank’s interest income for the reporting period grew by 42.2 per cent, prompted by increase in yields coupled with growth in interest earning assets.
Higher deposit rates, deposit growth as well as conversion of low cost deposits to fixed deposits at higher rates pushed the interest costs upwards. Nevertheless, the bank witnessed a growth of 25.3 per cent in net interest income amounting to Rs. 20.5 billion during the financial year, according to the statement.
Despite the salary revisions effected to staff in the non-executive cadre, the bank said it was successful in managing its costs with an increase of only 9.4 per cent over the previous year mainly due to the giant strides taken by the bank towards productivity improvements.
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