Business

HNB records strong and stable performance

Published

4 years ago

2022/02/22

Hatton National Bank PLC (HNB) solidified its position as one of the most sustainable and strongest banks recording a well-rounded performance in 2021. Group Profit After Tax (PAT) increased to Rs 20 Bn, representing a growth of 47% YoY while Bank PAT improved to Rs 17.3 Bn as economic activity picked up during the year.

The monetary policy loosening adopted to spur economic growth post the first wave of the COVID-19 pandemic in 2020 continued to be in place up to August 2021. Although the interest rates increased subsequent to the 50bps increase in policy rates in August, the average AWPLR for 2021 was approximately 160bps below the rate for 2020. This resulted in a decline of 5.1% in interest income to Rs 98.6 Bn, despite a strong loan growth in the second half of the year. Similarly interest expense reduced by 17.2% to Rs 49 Bn, resulting in a Net Interest Income (NII) growth of 10.8% YoY to Rs 49.6 Bn.

Commenting on the performance during the year, Chairperson of HNB PLC Aruni Goonetilleke stated that “2021 was a test of endurance and agility as the COVID-19 pandemic continued to disrupt lives and economic activity. During the tumultuous year, our colleagues around the country, led by our Managing Director/CEO Jonathan Alles and the Management Team have focused on protecting the interests of shareholders, while ensuring the wellbeing of colleagues, supporting our customers and showing solidarity with our communities”.

“I am pleased to note the overall robust performance of the HNB Group during 2021, delivered through sustainable growth and profitability, improved asset quality as well as strong capital and liquidity. The Group was also successful in driving digital adoption through future ready products and services. I wish to place on record my sincere appreciation for the entire Hatna family for their commitment and dedication during testing times, our valued customers for their continuous patronage, our investors and all other stakeholders for their trust and confidence”.

Net Fee and Commission income of the Bank grew by 27.5% YoY to Rs 9.6 Bn driven by higher card and trade business volumes as economic activity rebounded. Other non-interest income grew by 61% to Rs 6.5 Bn, largely due to the position revaluations on account of the deprecation of the LKR by 8% during 2021.

Improvements made with regard to credit underwriting standards, approval processes and recovery action has resulted in further improvements in asset quality reflected by the NPA ratio which improved to 3.38% from 4.31% in 2020 to record one of the best NPA ratios in the industry. The Net Stage III loans ratio also improved by 85 bps to 2.55% as at end of 2021.

The impairment charge for the year increased to Rs 18.8 Bn as significant management overlays were recognized on account of elevated risk industries and a provision of Rs 6.9 Bn was made on account of foreign currency denominated government securities as the sovereign was downgraded to CC by Fitch Ratings.

Total operating expenses increased by only 2.3% YoY mainly due to a 6.1% reduction in personnel costs. The Bank continued its policy of not laying off or cutting salaries due to the pandemic and concluded a very successful collective agreement for the non-executive staff. However, the extension of retirement age to 60 years resulted in a reversal of Rs 2.3 Bn on provision for pension and retirement benefits which led to the drop in personnel expenses. Other operating expenses which account for 52% of total operating expenses increased by 11.4% YoY. However, this was still 3.9% below the pre-pandemic level.

The growth in Total Operating Income at a higher rate of 16.7%, resulted in the cost to income ratio improving considerably to 34.4% compared to 39.3% in 2020.

Commenting on the performance MD/CEO of HNB PLC Jonathan Alles stated that “Humanity has faced the crisis of a generation and HNB has demonstrated remarkable resilience against this backdrop. Our journey over the past 133 years has been through many peaks and troughs . We have continuously strengthened our risk management, compliance and governance, which has helped us overcome challenges. This is testament to our strong and stable performance”.

“HNB has continued to extend support to revive livelihoods. We are pleased to note that many customers have been successful in getting back on their feet as moratoria extended has reduced from 40% of our loan book to 9% as at end of December 2021. Currently the moratoria outstanding is only in the tourism sector, with concessions extended to other sectors ending in 2021. The relaxation of travel restrictions by many countries and high vaccination rate in Sri Lanka augurs well for the tourism sector”.

“Our focus on being future ready and the investments we have made over the past enabled us to support our customers to carry out their transactions seamlessly, through our digital platforms and payment solutions. With evolving customer needs and lifestyles as well as high digital adoption rates owing to the pandemic, we will continue our digital transformation journey to provide an enjoyable banking experience to our customers.”

“Team HNB is at the heart of our business and enhancing the employee value proposition has been a core focus. As we move on, we will continue our efforts on strategic workforce planning, build a strong talent pipeline to operate in a future fit organization, develop future leaders through structured programmes and promote work life balance”. (HNB)

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Business

ADB signals strategic shift amid global turbulence, eyes budget support for Sri Lanka

Published

5 hours ago

2026/05/5

Sahan Weerasooriya

ADB President Masato Kanda (L) speaks at a one- on-one in Samarkand, Uzbekistan, yesterday.

The Asian Development Bank (ADB) is actively engaging with Sri Lanka on a potential budget financing package, following recent discussions between ADB President Masato Kanda and President Anura Kumara Dissanayake.

Describing the request as “crucial,” Kanda said the proposal is now under internal consideration, with a broader framework being developed to ensure funds are directed toward priority sectors such as energy security, food security, and overall budgetary support. While no figures or timelines were disclosed, he emphasised the need for a carefully structured and mutually agreed resource allocation strategy

Sri Lanka is among several countries that have approached the ADB for similar assistance, reflecting mounting fiscal pressures across the region.

Speaking at one of the key meetings of the 59th Annual Meeting of the ADB in Samarkand, Kanda outlined a broader institutional shift in response to escalating global economic uncertainties, particularly those stemming from tensions linked to the Iran conflict.

“Asia and the Pacific can’t afford to retreat into isolation,” he said, reiterating a paradigm shift in how the ADB responds with greater speed, flexibility, and coordination.

Reaffirming the bank’s commitment to the region, Kanda stated, “We will step forward as one, while the ADB will be your steadfast anchor,” signaling a more proactive and unified approach to crisis response and economic stabilisation.

As part of this renewed strategy, the ADB has launched a $70 billion initiative aimed at strengthening regional connectivity through integrated power grids and digital infrastructure. The program is expected to play a transformative role in boosting cross-border energy cooperation and technological integration. By 2035, the bank aims to facilitate the integration of approximately 20 gigawatts of renewable energy capacity across national borders, supporting both energy transition goals and regional resilience.

Kanda also detailed a multi-tiered response framework to address immediate and long-term economic disruptions. In the short term, the ADB is leveraging its Trade and Supply Chain Finance Program to provide rapid liquidity support. This is complemented by fast-disbursing budget assistance designed to shield vulnerable populations from economic shocks.

Over the medium term, the bank plans to deploy resilience-building tools to help the regional economies stabilise and adapt to ongoing geopolitical and financial stresses.

The evolving strategy reflects a recognition that traditional development financing models may be insufficient in the face of increasingly complex and interconnected global crises. For countries like Sri Lanka, the outcome of these discussions could prove pivotal in facing current economic challenges while laying the groundwork for sustainable recovery.

As deliberations continue in Samarkand, the focus remains on translating high-level commitments into tangible support mechanisms tailored to the specific needs of ADB”s member countries.

By Sanath Nanayakkare in Samarkand, Uzbekistan

Business

Sri Lankan Food Festival 2026

Published

5 hours ago

2026/05/5

Sahan Weerasooriya

At the initiative of the Deputy High Commissioner of Sri Lanka, Dr. Ganesanathan Geathiswaran, the Deputy High Commission of Sri Lanka in Chennai successfully organized the first-ever “Sri Lanka Food Festival 2026” from 24th to 26th April at Green Meadows Resort, Chennai.

The Festival provided a unique platform to showcase the rich and diverse culinary heritage of Sri Lanka, offering guests an authentic experience of traditional Sri Lankan cuisine.

The event was organized in collaboration with esteemed partners, including the Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka; Sri Lanka Tourism Promotion Bureau; Cinnamon Grand Hotel, Colombo; Ministry of External Affairs of India; India Tourism, the Government of India, the Tourism Department of the Government of Tamil Nadu, Dwarka Productions Chennai, and Tarlton Tea.

The primary objective of the festival to further strengthen cultural ties between Sri Lanka and South India while promoting tourism, trade, and people-to-people connections through a shared appreciation of culinary heritage was successfully achieved.

The occasion was further honoured by the presence of Suresh Jain, District Governor of Rotary District 3234; Navin Gupta, President of the Rotary Club of Chennai Coastal; and the Chief Guest, Dr. Ishari K. Ganesh, Founder, Chairman and Chancellor of Vels University.

The event was also attended by Mr. Blaze Kannan of Dwarka Productions; Nazoomi Azhar, General Manager of Cinnamon Grand Hotel, Colombo; and Sri Lankan actor Kalana Gunasekara, whose presence added further distinction to the occasion.

The festival witnessed the participation of diplomatic Corps, South Indian actors and actresses, distinguished business leaders, members of travel and tourism associations, members of Rotary Clubs, Round Table members, and members of the media fraternity, making it a prestigious and diverse gathering.

Over 700 guests attended the festival across the three days, reflecting strong interest and engagement from the local community.

In addition, the Rotary Club of Chennai Coastal announced its initiative to donate an ambulance to Sri Lanka and to renovate 30 schools across the country, further strengthening goodwill and support in the healthcare and education sectors between the two regions.

Business

JAECOO shakes up UK auto market with record-breaking growth

Published

5 hours ago

2026/05/5

Sahan Weerasooriya

Since its UK debut in January 2025, JAECOO has recorded 28,232 new vehicle registrations within its first year, validated by the SMMT, making it the fastest-growing mainstream automotive brand Britain has seen in over a decade. Its flagship model, the JAECOO J7 PHEV, ranked among the most popular retail cars in the UK within its first year and emerged as the best-selling new car in Britain in March 2026.

These results have been further reinforced by a series of prestigious industry accolades:

Carwow Brand of the Year 2026

Leasing.com Overall Car of the Year

Recognised by Google as the most searched Chinese automotive brand in the UK in its Year in Search 2025

Supporting this growth is JAECOO’s parent company, Chery Group, ranked 233rd in the Fortune Global 500 (2025) and China’s No. 1 passenger vehicle exporter for 23 consecutive years.

This global momentum is beginning to translate into local demand, with growing interest in the JAECOO J7 PHEV across Sri Lanka. Designed to combine premium styling with advanced technology and everyday practicality, the model is well suited to both urban driving and more challenging terrain. It offers a combined range of up to 1,200 km, fast-charging capability (30% to 80% in 20 minutes), and acceleration from 0–100 km/h in under 8.5 seconds. Safety and reliability are reinforced through advanced driver-assistance features, a five-star Euro NCAP rating, and a seven-year warranty offered by Hayleys Mobility.