Business

HNB Group posts Rs. 8.8bn in PAT during first nine months of 2020

Published

6 years ago

2020/11/14

Hatton National Bank PLC (HNB) reported Profit After Taxes (PAT) of Rs. 7.7Bn for the first nine months of 2020, while the Group recorded a PAT for Rs. 8.8Bn for the same period.

Commenting on the performance, Dinesh Weerakkody, chairman of HNB stated that, “Sri Lanka managed the first wave of the pandemic commendably. However, as the situation continues to evolve globally, we as a nation are currently at a crucial juncture once again. Despite the significant challenges brought about by the pandemic, HNB continued to demonstrate strength, stability and resilience. The recent unprecedented two notch downgrade of the Sovereign rating by Moody’s has been a further setback. In this backdrop, I’m happy to note that HNB was able to conclude a long term loan agreement of USD 60Mn with the French Development Financing Institution, Proparco to support the SME sector of Sri Lanka”.

The monetary easing adopted post the pandemic has led to a 400bps drop in AWPLR since the beginning of the year. The Interest Income of the Bank declined in line with the drop in interest rates to Rs. 79.6 Bn, by 8.7% YoY in comparison to the corresponding period of 2019. Interest Expenses of Rs. 45.8 Bn represented a 7.3% YoY drop from last year, resulting in a Net Interest Income (NII) of Rs. 33.8 Bn which was 10.6% lower compared to the first nine months of the previous year.

The impact of COVID-19 continued to hamper the Net Fee and Commission income which declined by 18.9% YoY to Rs. 5.4 Bn as a result of the restrictions placed on imports, low volume of foreign card transactions, removal of certain charges as part of CBSL initiated COVID relief scheme and low level of economic activity etc. However, the Bank witnessed an encouraging increase in income from digital products and platforms with customers shifting to digital channels under social distancing and health guidelines.

Expressing his views on the performance of the Bank, Jonathan Alles, Managing Director / CEO of HNB stated that, “Our country was moving in a positive trajectory over the last few months, until the second wave struck us, however, this has been a common phenomenon across the world. Therefore, it is important to provide the necessary support to drive grass root revival and adapt to the ‘new normal’. As of September, HNB has provided moratoriums to over 85,000 customers and processed working capital finance amounting to over Rs. 24Bn to COVID affected businesses under the CBSL Saubhagya schemes. Over the past two years, the banking sector of Sri Lanka, has stepped in to support distressed sectors, providing necessary financial assistance as our country underwent, multiple shocks. At this critical point in time as a responsible D-SIB, HNB will once again stand by its loyal customers, to ensure that they come out of this crisis successfully. We strongly believe that the authorities will introduce sustainable, long term solutions and more stable alternate funding options to support the most vulnerable segments of our economy”.

He added that “We are cognizant of the tough road ahead of us, however we remain optimistic of the revival of our economy and the time taken for recovery would depend on how successful we are as a nation in managing the crisis. At HNB, we will continue to drive transformational change in our systems, processes and people operating within the new normal, and play a meaningful role in the resurgence of Sri Lanka.”

The NPA ratio of the Bank increased to 6.51% compared to 5.91% as at end of December 2019 and 6.4% as at 30th June 2020. However, an exposure of Rs. 11.5 Bn to a State Owned Enterprise, which was classified as NPA in December 2019, was regularized in October 2020. Accordingly, after adjusting for this recovery, the NPA ratio for the Bank would have decreased to 5.06% from the NPA ratio of 6.51% reported for September 2020. The impairment charge for the period increased by 45.6% YoY over the nine-month period to Rs. 11.8Bn. Although the Bank’s policy is to account for impairment for foreign currency denominated government securities based on the ratings published by Fitch Ratings, the Bank recognized a provision of Rs 427 Mn during 3Q 2020, on account of the sovereign downgrade by Moody’s in September 2020, in addition to the provision made in 1Q 2020 due to the sovereign downgrade by Fitch Ratings.

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Business

Commercial Bank extends its operations to Port City Colombo

Published

5 mins ago

2026/06/8

Thilina Walpola

The Commercial Bank branch at Port City Colombo.

Commercial Bank of Ceylon PLC’s new branch in Port City Colombo is poised to bring world-class banking services to Sri Lanka’s emerging international financial hub.

Located at Building 04 in Area 02 of the Port City Business Centre – Commercial Hub, Commercial Bank’s Port City Colombo branch will function as a fully-fledged banking operation, strengthening the Bank’s presence in one of Sri Lanka’s most strategically significant emerging economic zones. Designed to serve the evolving financial requirements of corporates, investors, businesses, professionals and retail customers within the Port City Colombo ecosystem, the branch offers access to Commercial Bank’s comprehensive portfolio of financial solutions. These include current and savings accounts, fixed deposits, personal and business lending, housing and leasing facilities, credit and debit card services, inward and outward remittances, foreign currency accounts and transactions, trade finance solutions, import and export services, corporate banking, treasury and foreign exchange services, cash management solutions and digital banking facilities.

By combining full-service branch banking with digital capabilities and uninterrupted self-service access, the new branch reflects Commercial Bank’s commitment to delivering future-ready, accessible and internationally aligned financial services in support of Port City Colombo’s growth as a dynamic hub for commerce, investment and innovation.

Business

Credit card interest rates to increase from July 1

Published

5 mins ago

2026/06/8

Thilina Walpola

Following the recent decision by the Monetary Policy Board of the Central Bank of Sri Lanka to raise the Overnight Policy Rate by 100 basis points, a corresponding increase in market interest rates has been reported.

In line with this shift, several banks have already taken steps to increase the interest rates charged on credit cards. Banks have begun notifying their customers that the annual interest rate for credit cards will rise from the current 26% to 28%, effective from July 1st.

This rate hike comes at a time when credit card usage is on the rise. According to the Central Bank of Sri Lanka, the total number of active credit cards in the country stood at 2,166,186 at the end of 2025. By the end of the first quarter of 2026, this number had grown to 2,215,853 cards.

The latest data also highlights a significant increase in consumer debt. The total outstanding balance on credit cards was Rs. 189,706 million as of December 31, 2025. By March 31, 2026, this figure had climbed to Rs. 194,105 million, reflecting a growing reliance on credit despite the looming interest rate adjustments.

Business

Peterson Solutions Sri Lanka opens new corporate office at Orion City

Published

5 mins ago

2026/06/8

Thilina Walpola

Iwan Rutjens, Deputy Head of Mission of the Embassy of the Kingdom of the Netherlands

ESG performance, and supply chain resilience

Peterson Solutions Sri Lanka, the consultancy and advisory arm of the globally recognized Peterson and Control Union Group, officially opened its new corporate office at Orion City, Colombo, on June 5, 2026. The event marked a significant milestone in the company’s growth journey and its long-term commitment to supporting businesses across Sri Lanka and the wider region.

The inauguration ceremony was attended by distinguished guests, including Iwan Rutjens, Deputy Head of Mission of the Embassy of the Kingdom of the Netherlands in Sri Lanka, who officiated the ribbon-cutting. Representatives from the European Union, UNIDO, Market Development Facility Australia, industry partners, and clients were also present.

Peterson Solutions draws on a century-old legacy dating back to 1920. The parent group operates in over 80 countries, undertakes projects in more than 120 countries, and serves over 40,000 clients through a network of 6,500 professionals. The company helps organizations navigate complex challenges in sustainability, compliance, sourcing, certification, and technology. Its service portfolio includes certification support, sustainable sourcing, ESG services, digital solutions, training through Peterson Academy, and international crop consultancy via Delphy.

The company serves a wide range of industries, including agriculture, food and beverage, textiles, fisheries, tourism, manufacturing, IT, logistics, and export sectors. Across Asia-Pacific, Peterson Solutions operates 14 regional offices, covering markets such as India, Vietnam, Thailand, Indonesia, Japan, China, Australia, and Singapore.

In Sri Lanka, Peterson Solutions began operations in 2023 from a smaller office in Colombo 03. Within just a few years, it has become a trusted partner to over 170 local clients, while also supporting projects in the Maldives, Cambodia, and Myanmar. The move to Orion City reflects continued growth, team expansion, and rising demand for value-added services, including crop consultancy, sustainable agriculture, digital sustainability management, and professional training.

Key clients include Barista, Pelwatte Dairy, Ethimale Plantations, Sysco LABS, INSEE Ecocycle, Ceylon Tobacco Company, Prima, and Ansell. Company representatives noted that the new office symbolizes a broader vision of helping businesses respond to evolving market expectations, regulatory obligations, and technological transformation. As organizations increasingly focus on responsible growth, ESG performance, and supply chain resilience, Peterson Solutions remains committed to being a trusted partner that turns compliance into competitiveness and strategy into measurable impact.