Business
HNB reports Rs 12.2 bn PAT for the first nine months
Continues its support for business revival through debt moratoria and disbursements
A resilient business model and continued focus on sustainable growth was reaffirmed as Hatton National Bank PLC (HNB) reported Rs 12.2Bn in Profit After Tax (PAT) for the nine-month period ended September 2021. HNB Group recorded Rs 13.4Bn in PAT for the period.
The loan book recorded a sound growth of 15% during the past 12 months with an increase of Rs 118Bn. The Prime Lending Rate (PLR) picked up following the upward revision in policy rates in August 2021. However, the average PLR between January to September this year was approx. 300 bps lower than the average rate which prevailed in the corresponding period of 2020. As a result, Interest Income for the nine months declined by 8.9% YoY to Rs 72.5Bn.
Similar trend in average cost of deposits combined with zealous focus on CASA which grew by Rs 52.9Bn to Rs 436.6Bn as of September led to interest expenses being lower by 19.3% YoY to Rs 37Bn. Resulting Net Interest Income exhibited a 5.2% growth to Rs 35.6Bn. The CASA mobilization efforts also facilitated total deposit growth just under 15% YoY over 12 months since September 2020.
Aruni Goonetilleke, Chairperson of HNB commented that “I am pleased to note that HNB has continued to display resolve and stability within a context of rapidly changing macro dynamics. I wish to place on record my sincere gratitude to our loyal customers for their continuing patronage, every member of Team HNB for their commitment and dedication in navigating through multiple challenges and all our stakeholders for their continuing support and trust.”
“As Sri Lanka enters a path of recovery, we believe that necessary measures are being taken to address macro concerns, create stability and a conducive environment for the banking sector to optimize their support to sustainable economic growth. HNB remains very committed to supporting our clients and to the development agenda of the Country”.
Despite periodic disruptions to business activity in 2021 owing to lockdowns, the Bank was able to grow Fee and Commission income by 22.8% YoY to Rs 6.7Bn. Cards and Trade Business demonstrated strong growth along with digital channel driven fees and commissions.
The depreciation of the Rupee relative to last year resulted in net exchange gains, largely stemming from on balance sheet positions and FCBU earning revaluations, increasing by Rs 2.8Bn over the corresponding period, a substantial portion of which is reflected in ‘Other Operating Income’.
Consistent focus on credit quality enabled HNB to improve its Gross NPA ratio to 3.92% by September 2021 compared to 4.31% as at end Dec 2020. Stage III loans as a percentage of total loans also improved by 43 bps over nine months to 2.97%. The Bank made an impairment of Rs 11.2Bn for the nine months, including a significant management overlay, considering the uncertainties stemming from the COVID 19 pandemic. The impairment charge also included an additional provision due to the sovereign downgrade by Moody’s from Caa1 to Caa2. Accordingly, the Stage III Provision coverage ratio improved from 48.4% in December to 54.2% by September 2021.
Commenting on HNB’s performance MD/CEO Jonathan Alles stated that “the banking sector of Sri Lanka has demonstrated resilience over a prolonged period of extreme uncertainty. As a domestic systemically important bank, HNB has been in the forefront recording superior asset quality, capital and liquidity levels while delivering sound and sustainable returns.”
“The pandemic has also proven the need to be agile and future ready. Our continuous focus on business transformation has been a key factor which has enabled us to stay ahead. During the year we have enhanced the capabilities of our digital platforms and this would continue to be a key focus area as we proceed our journey to enhance value delivered to all our stakeholders”.
Alles further stated that “since the Easter Sunday attacks in 2019 we have continued to support our customers through debt moratoria, and extended concessionary rate financing and grants. Despite the impact of lockdowns, we are pleased to note that majority of our customers have shown signs of recovery. With economic activity returning to near normalcy, we hope that most of the sectors would be operating close to capacity levels and customers would commence repayment to reduce their debt burden. This would in turn enable us to focus on more needy sectors of the economy”.
The Bank’s Cost to Income ratio improved by over 225 bps to 37.84% although Operating Expenses rose by 7.8% YoY to Rs 18Bn due to total Operating Income exhibiting strong growth of 14.2% to Rs 47.5Bn.
Profit Before taxes (PBT) rose by 43% YoY to Rs 14.7Bn. The total effective tax rate reduced from 40.84% for the Nine months ending 2020 to 33.17% as 24% in lieu of 28% was applicable as the Corporate Tax rate for the current period as well as for the deferred tax component. The resulting PAT of Rs 12.2Bn generated a ROA of 1.23%.
Strong growth in the third quarter fueled nine-month gross loan growth of 10.7% to Rs 901.7Bn. HNB also continues to be a preferred Bank for clients with Rs 52.9Bn CASA mobilized during the period, which boosted the deposit base by 9.5% to Rs 1.06 Trillion. The CASA ratio improved by over 150 bps since December 2020 to 41.2%. Total assets expanded by 4.7% to Rs 1.35 Trillion. Tier I Capital Adequacy ratio remained strong at 14.43% against the regulatory requirement of 8.50%, while the Total Capital Adequacy ratio improved further in 2020 to 18.22% due to the Rs 7Bn Basel III compliant debenture issue in the third quarter.
HNB Group Companies were also profitable during the nine-month period, complementing the Group PBT and PAT of Rs 16.4Bn and 13.4Bn respectively while profit attributable to the shareholders rose to Rs 13Bn. Group assets grew by 4.6% since 2020 to Rs 1.43 Trillion by end September 2021.
HNB is rated AA- (lka) by Fitch Ratings and has been ranked among the Top 1000 Banks in the World over five consecutive years by the acclaimed UK based “The Banker Magazine”. HNB was once again reco.
Dialog Axiata PLC announced its consolidated financial results for the three months ended 31st March 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Tele-infrastructure businesses recording a positive Revenue growth of 4% Year on Year (“YoY”) to reach Rs43.3Bn for Q1 2025. On a Quarter on Quarter (“QoQ”) basis Revenue declined by 5% owing to conscious scaling down of low margin international wholesale business amounting to Rs1.7Bn for Q1 2025. Group Core Revenue was recorded at Rs41.4Bn for Q1 2025, up 20% YoY albeit declining 2% QoQ due to days impact. Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) recorded a growth of 45% YoY to reach Rs19.7Bn albeit declining 7% QoQ due to moderate decline in core Revenue.
Headline EBITDA margin improved 12.8 percentage points as compared to Q1 2024. The Group Net Profit After Tax (“NPAT”) was recorded at Rs4.1Bn for Q1 2025 up 49% YoY albeit declining 39% QoQ. Dialog Group continued to be a significant contributor to state Revenues, remitting a total of Rs14.8Bn to the Government of Sri Lanka (“GoSL”) during Q1 2025. Total remittances included Direct Taxes and Levies amounting to Rs4.5Bn as well as Rs10.3Bn in Consumption Taxes collected on behalf of the GoSL. The Group continues to remain steadfast to meet growing demand from both retail and corporate sectors, whilst also ensuring seamless experience and leadership in Sri Lankas’ Broadband and ICT sectors. Dialog mobile network was recognised by third party network monitoring platform as the leader across 5G Experience, Coverage and Overall Experience. The Capital expenditure (“Capex”) for Q1 2025 reached Public
Rs3.7Bn representing an increase of 36% YoY. As a result of improved performance and controlled Capex, the Group recorded Operating Free Cash Flow (“OFCF”) of Rs12.3Bn for Q1 2025 up 71% YoY and >+100% QoQ.
In the recent quarter, Dialog was honoured as the ‘Telecommunication Brand of the Year’ for the 14th consecutive year and the ‘Service Brand of the Year’ for the 4th time at the SLIM-KANTAR People’s Awards 2025, held on March 18, 2025. This recognition, awarded based on the voice of the people, reflects the strong affinity with Sri Lankans over the years. Dialog was also recognized at the ACCA Sustainability Reporting Awards 2024, winning the ‘Non-Financial Services Category’ for its exemplary commitment to sustainability and transparency. This achievement reflects the company’s ongoing efforts to integrate sustainability into its business strategy and operations.
At an entity level, the Company continued to contribute a major share of Group Revenue (74%) and Group EBITDA (72%) during the quarter. Company Revenue was recorded at Rs32.3Bn up 26% YoY due to consolidation of Airtel business and stable pricing in the consumer space. On a QoQ was down 1% owing to days impact. EBITDA was recorded at Rs14.2Bn for Q1 2025 representing a growth of 63% YoY on the back of strong revenue performance and moderation in cost increase. On a QoQ basis EBITDA declined by 21% due to higher Network and Manpower costs. The Company NPAT was recorded at Rs2.9Bn for Q1 2025, up 78% YoY albeit declining 64% QoQ. Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television space, maintaining a strong subscriber base of over 1.6Mn as of end Q1 2025. DTV Revenue reached Rs3.1Bn for Q1 2025, remaining stable YoY albeit declining 6% QoQ due to slow down in subscription revenue and days impact. DTV EBITDA was recorded at Rs475Mn a growth of 3% YoY whilst declining 29% QoQ largely in line with the revenue movement. NPAT was recorded at a negative Rs367Mn for the quarter. Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs9.0Bn for Q1 2025, down 38% YoY and 17% QoQ. The headline Revenue decline was due to the scaling down of low margin international wholesale business. The Core Fixed Business recorded a Revenue of Rs7.8Bn for Q1 2025, up 6% YoY and 2% QoQ. The EBITDA Public for DBN grew 24% YoY and 82% QoQ to record at Rs5.0Bn for Q1 2025, driven by decline in Network and Manpower costs. NPAT reached Rs1.6Bn for Q1 2025 increasing 72% YoY. More details are available at the following links:
Dialog Axiata PLC direct weblink: https://www.dialog.lk/financial-report-archives#quaterly-reports
CSE direct weblink: https://www.cse.lk/pages/company-profile/company-profile.component.html?symbol=DIAL.N0000
Dialog sustainability: https://www.dialog.lk/sustainability
Sri Lanka celebrates a moment of immense national pride as hachajah – the artistic moniker of Colombo-born singer, songwriter and producer Charith Peris — secures two prestigious accolades at the Contemporary A Cappella Recording Awards (CARAs), hosted by the Contemporary A Cappella Society (CASA). These global awards, considered the highest honour in recorded a cappella music, have previously recognised internationally acclaimed acts like Pentatonix, now a household name in the genre.
hachajah’s debut EP, No Place Like, was awarded Best Semi-Professional Post-Collegiate Album or EP, while his poignant single Colombo Sky earned Best Song by a Solo Performer. With eight nominations and runner-up honours in two additional categories, this debut marks a breakout moment for the artist – and a significant cultural win for Sri Lanka.
“Winning a CARA was a personal dream. To win two with my first EP is surreal,” hachajah shares. “These awards are an honour to receive, as they recognise my journey, my Sri Lankan roots, and the stories I carry through music.”
Known for his distinctive fusion of pop a cappella with traditional Sri Lankan narratives and musical elements, hachajah crafts songs that are both deeply personal and widely resonant. Drawing from his experiences growing up in Colombo during the civil war, his music explores themes of identity, longing, and cultural memory.
Season 4 Honda Purudu Championship Finals were held at the Temple Trees Auditorium on the 27th of April, with the Rotary district governor, Sushena Ranatunga, as the chief guest. The governor enlightened the audience, filled with teachers, principals and other educators the importance of bringing back the lost values in our country. He thanked the children for learning and expressing these important values using performing arts and advised them to make them part of their daily lives.
Children in Sri Lanka are navigating a world filled with complex moral dilemmas and often lack the guidance to cultivate essential values like kindness, honesty, and respect. Honda Purudu Championship is part of the Little Minds Strong Values (LMSV) program, conceptualised by Rotarian Rukshan Perera, supported by the Rotary Club of Colombo Metropolitan, and collaborated with the Ministry of Education to roll out to schools around the country. LMSV attracts the children with engaging, value-embedded, video-animated songs that teach core values while inspiring the child
ren to express these values and perform skits in school and join the Honda Purudu Championship through the performing arts. This process aspires to place values education at the forefront of children’s lives (in school and at home) and mould the next generation to become compassionate and responsible leaders.
HONDA PURUDU CHAMPIONSHIP: The annual Honda Purudu Championship further encourages children and schools to participate and sustain these values while winning Awards & Certificates. It is open to preschoolers, primary and secondary schoolers in the Solo and Group categories. As a byproduct, the children continue to enhance their talents in the performing arts.
Season 4 LMSV Championship has made remarkable strides with more than 11,000 children showcasing active engagement nationwide, with schools embracing LMSV values in various innovative ways, benefiting thousands of children. The professional judges selected 140 children, and they were invited to the finals in Colombo. They came from North, South, East and West – Jaffna, Ampara, Batticaloa, Galle, Kalutara, Kandy, Badulla, and several other big cities and small towns. Children selected LMSV songs of their choice to eagerly express these values via Song, Dance, Speech, and Drama. In the process, they surprised the audience with their fabulous talents, wearing beautiful costumes, expressing these values in the mediums they enjoy, and elevating the afternoon to an impressive event.
The principals, teachers and other educators spoke very highly of the event; “We are thankful to the Ministry of Education and Rotary for introducing LMSV to schools”, “This is an innovative program for children to build future leaders with good morals”, “Every child must be exposed to the LMSV program to build the future of our country”…etc.
COMPREHENSIVE WEBSITE TO DRIVE THE PROCESS: LMSV website WWW.LMSV.LK provides a comprehensive platform that connects educators with integrated tools in one seamless experience. It’s a one-stop shop for teachers, parents, students, and the community to learn the program via online tutorials, guides, and presentations.
This is an annual event organised by the Rotary Club of Colombo Metropolitan, and we welcome all school principals, teachers and parents around the country to help the children join the Honda Purudu Championship and learn these important values for life. Season 5 will begin in May 2025.
-
Opinion7 days agoRemembering Dr. Samuel Mathew: A Heart that Healed Countless Lives
-
Business5 days agoAitken Spence Travels continues its leadership as the only Travelife-Certified DMC in Sri Lanka
-
Latest News4 days agoNPP win Maharagama Urban Council
-
Business5 days agoLinearSix and InsureMO® expand partnership
-
Business3 days agoJohn Keells Properties and MullenLowe unveil “Minutes Away”
-
Features7 days agoTrump’s economic missiles are boomeranging
-
Latest News7 days agoThe Heat index is likely to increase up to ‘Caution level’ at some places in Eastern, Northern, North-central and North-western provinces and in Monaragala and Hambantota districts.
-
Business4 days agoNDB Bank partners with Bishop’s College to launch NDB Pixel awareness