Aug 18, 2017

HNB Bank PBT exceeds Rs 10 B

HNB Group recorded a profit before VAT and Tax of Rs 13.4 Bn for the first six months of 2017 posting a year on year (yoy) growth of 13.8% while the Group PAT increased by 7.5% to Rs 7.5 Bn.

The Bank posted a profit before VAT and tax of Rs 12.5Bn during the 1H of 2017 recording a growth of 15.8% yoy. The profit before tax for the Bank grew by 10.1% yoy to Rs 10 Bn while post-tax profits grew by 11.3% to Rs 7.1 Bn for the period.

The sound performance was driven by the core banking business with interest income, rising by 38.8% yoy to Rs 46.5 bn. This was supported by a 19.3% yoy growth in advances.

The growth in CASA deposits to Rs 245.9 Bn in a high interest rate environment enabled HNB to maintain interest margins and record a 20.5% growth in net interest income to Rs 19.1Bn. Fee and Commission income for the 1H 2017 was recorded at Rs 4.1 Bn representing an increase of 21.5% over the corresponding period of 2016.

Fees from the credit card business, trade finance and bank guarantees remained the key contributors towards this growth.

The net loss from trading increased to Rs 889.3 Mn from a loss of Rs 523.3 Mn experienced during 1H 2016. This was mainly due to the relatively higher swap rates and the depreciation of the rupee during the period under review compared to the 1H of 2016.

Conversely the positive impact on position revaluation was reported under ‘other operating income’ which improved to Rs 1.3 Bn from Rs 1.1 Bn in the corresponding period of 2016.

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