Digital, strong customer service boost HNB post-tax profit to Rs 16.7 bn
View(s):HNB, successfully weathering the challenges that arose in 2017 while leveraging upon new growth opportunities, posted a post-tax profit (PAT) of Rs 16.5 billion, up by 16.4 per cent from 2016.
Group PAT improved to Rs. 16.7 billion while the group’s asset base crossed the Rs. 1 trillion milestone, during the year.
In a media release, the bank said CASA growth of Rs. 23.4 billion during the year was a key achievement given the industry wide decline in CASA ratios as high interest rates attracted funds into fixed deposits. Nevertheless through concerted efforts HNB successfully maintained its CASA ratio while focusing on profitable business segments.
Net losses from trading doubled in 2017 to Rs 3.7 billion on account of higher swap costs. This loss was however offset by balance sheet translation gains, which together with foreign exchange income amounted to Rs. 3.2 billion and reflected under ‘other operating income.’
HNB’s profit before taxes and financial VAT was reported at Rs. 27.1 billion amounting to a growth of 10.5 per cent YoY while total tax charge for the bank and the group stood at Rs. 10.6 billion and Rs. 11.8 billion, respectively.
Commenting on HNB’s performance, MD/CEO Jonathan Alles said: “HNB’s performance in 2017 has been strong and resilient amidst relatively low economic growth and a tighter fiscal and monetary policy environment. Our proven business model and strategy centered on digital leadership, best in class processes, and an uncompromising stance on being the best service brand in the country has once again been validated in 2017.