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HNB records a Group PBT of Rs 38.7 Bn for the first nine months of 2024

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Damith Pallewatte, Acting CEO – HNB (L) / Nihal Jayawardene Chairman HNB (R)

HNB Group recorded a PAT of Rs 23.7 Bn growing by 26% YoY, while the Bank’s Profit After Tax increased by 34% YoY to Rs 22.2 Bn for the nine months ended September 2024.

Commenting on the performance, Nihal Jayawardene, Chairman of Hatton National Bank PLC, stated that “having experienced five years of extreme volatility and unprecedented challenges, Sri Lanka has witnessed macro-economic stability during the year. We believe, that the completion of the external debt restructuring as announced, as well as progression in the reform agenda, will boost investor confidence, auguring well for the country and the banking sector”.

Damith Pallewatte, Acting Chief Executive Officer of Hatton National Bank PLC, added that “Sri Lanka’s key macro variables continued to move in the right trajectory during the first nine months of the year. However, at bank level, these variables resulted in mixed financial outcomes. The overall improvement in the operating environment created a conducive environment for businesses and individuals leading to better credit growth and debt serviceability by the borrowers. However, steep drop in market rates impacted both yields from the loans and advances and investment portfolio negatively exerting pressure on interest margins. While strengthening of the LKR against the USD resulted in improved economic activity on the imports front, this also resulted in bank having to recognize an exchange loss on the revaluation of foreign exchange reserves. Nonetheless, in this backdrop, Bank’s core focus remained on sustainable growth through responsible lending, mobilization of low-cost deposits, growing non-interest income and improving asset quality”.

Decline in AWPLR by nearly 50% compared to last year and remaining at an average level of 10% for the first 9 months directly reflected in the loan yields as the loan book repriced at lower rates leading to a considerable 25% decline in Gross Interest Income for the period. The Interest Expense also recorded a 29% drop in line, supported by the strong growth in CASA deposits. The resultant NII for the period was recorded at Rs. 68.5 Bn, reflecting an 18% YoY contraction.

Bank’s efforts to minimize the impact of interest rate volatility, resulted in a 10% YoY growth in Net Fee and Commission income despite trade income being relatively lower compared to the previous year with the normalizing of the trade tariff to pre-crisis levels. The growth in fee income was largely driven by higher cards and digital transactions in line with the efforts to drive a cashless economy,

The support extended to customers to revive their businesses, concerted efforts on collection and the overall improvement in economic activity enabled the Bank to record superior asset quality compared to the industry. The net stage 3 ratio improved to 3.32% while the stage 3 provision coverage ratio improved to 60.50%, during the quarter, compared to 4.09% and 56.08% recorded in 1H 2024. The total impairment charge for the nine months amounted to Rs 3.2 Bn, compared to Rs 32.4 Bn for the same period in 2023. The impairment charge for the previous period included an amount of Rs 25 Bn on account of Bank’s investments in international sovereign bonds (ISBs). With the agreement on the external debt restructuring, in line with the industry practice, the Bank maintained its provision cover of 52% on the investments in ISBs. This together with the positive movement in stage-wise loans, led to a significant reduction in the impairment charge for the period.

As of 30th September 2024, the Bank’s gross loans and advances which saw a drop in the first quarter recorded a net growth of Rs 91.1 Bn since, reaching Rs 1.1 Tn. The Bank’s deposit base continued to grow significantly, reaching Rs 1.62 Tn, driven by a remarkable increase of Rs 79.9 Bn in LKR CASA over the nine months of 2024. This has elevated the LKR CASA ratio to 35.8% from 31.8% in December 2023.

HNB’s Tier I and Total Capital Adequacy Ratios stood at 15.51% and 20.01% against the minimum statutory requirements of 9.5% and 13.5% respectively. The tier II ratio was further strengthened during the quarter, by the successful issuance of Basel III compliant subordinated debentures, amounting to Rs 12 Bn. HNB continued to maintain a strong liquidity position with an all currency Liquidity Coverage Ratio of 297.39%, against the minimum statutory requirements 100%. Outlining his vision for the Bank, Acting CEO stated that “Our goal is to continue building on our legacy of strength, stability and innovation. By leveraging best in class customer service, emerging technologies, and unparalleled suite of products and services, we aim to partner the progress of our people, while exploring new market opportunities for expansion.

HNB is rated A (lka) by Fitch Ratings and was adjudged the “Sri Lanka’s Best Bank” and “Sri Lanka’s Best Bank for SMEs” by Euromoney Magazine in 2024. In addition, HNB was also recognized as the “Best Retail Bank in Sri Lanka” for the 14th occasion and “Best Automobile Financing for Asia Pacific” by the Asian Banker. HNB was ranked the Number 1 Company in Sri Lanka by Business Today in its Top 40 Businesses ranking for 2023-24. HNB was recognized as one of the Top 25 Corporates at the LMD Awards which was held honouring 25 most awarded Sri Lankan Corporates.



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“We Are Building a Stable, Transparent and Resilient Sri Lanka Ready for Sustainable Investment Partnerships” – PM

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Prime Minister Dr. Harini Amarasuriya addressed members of the Chief Executives Organization (CEO) during a session held on Thursday [3 February 2026] at the Shangri-La Hotel, Colombo, as part of CEO’s Pearl of the Indian Ocean: Sri Lanka programme.

The Chief Executives Organization is a global network of business leaders representing diverse industries across more than 60 countries. The visiting delegation comprised leading entrepreneurs and executives exploring Sri Lanka’s economic prospects, investment climate, and development trajectory.

Addressing the gathering, the Prime Minister emphasized that Sri Lanka’s reform agenda is anchored in structural transformation, transparency, and inclusive growth.

“We are committed not only to ensuring equitable access to education, but equitable access to quality education. Our reforms are designed to create flexible pathways for young people beyond general education and to build a skilled and adaptable workforce for the future.”

She highlighted that the Government is undertaking a fundamental pedagogical shift towards a more student-focused, less examination-driven system as part of a broader national transformation.

Reflecting on Sri Lanka’s recent political transition, the Prime Minister stated:

“The people gave us a mandate to restore accountability, strengthen democratic governance, and ensure that opportunity is not determined by patronage or privilege, but by fairness and merit. Sri Lanka is stabilizing. We have recorded positive growth, restored confidence in key sectors, and are committed to sustaining this momentum. But our objective is not short-term recovery it is long-term resilience.”

Addressing governance reforms aimed at improving the investment climate, she said:

“We are aligning our legislative and regulatory frameworks with international standards to provide predictability, investor protection, and institutional transparency. Sustainable investment requires trust, and trust requires reform.”

Turning to the recent impact of Cyclone Ditwa, which affected all 25 districts of the country, the Prime Minister underscored the urgency of climate resilience.

“Climate change is not a distant threat. It is a lived reality for our people. We are rebuilding not simply to recover, but to build resilience, strengthen disaster mitigation systems, and protect vulnerable communities.”

Inviting CEO members to consider Sri Lanka as a strategic partner in the Indo-Pacific region, she highlighted opportunities in value-added mineral exports, logistics and shipping, agro-processing, renewable energy, pharmaceuticals, and innovation-driven sectors.

“We are not looking for speculative gains. We are seeking long-term partners who share our commitment to transparency, sustainability, and inclusive development.”

She further emphasized collaboration in education, research, vocational training, and innovation as essential pillars for sustained economic growth.

Concluding her address, the Prime Minister expressed appreciation to the Chief Executives Organization for selecting Sri Lanka as part of its 2026 programme and reaffirmed the Government’s readiness to engage constructively with responsible global investors.

The event was attended by the Governor of the Western Province,  Hanif Yusoof, and other distinguished guests.

[Prime Minister’s Media Division]

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High Commissioner in Pakistan urges high level business visit to Colombo

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High Commissioner Senevirathne and Dr. Munir at meeting

The High Commissioner of Sri Lanka to Pakistan, Rear Admiral Fred Senevirathne, met Dr. Zeelaf Munir, Chairperson of the Pakistan Business Council (PBC), in Karachi on Feb. 6 and urged a high level visit of Pakistani business people to Sri Lanka, a news release from the High Commission said.

Dr. Munir, who also serves as the Managing Director and Chief Executive Officer of English Biscuit Manufacturers (EBM), leads Pakistan’s premier business policy advocacy body, which plays a key role in promoting a conducive business environment, export growth, and industrial development.

The High Commissioner who was warmly received by Dr. Munir at her office briefed her on the current economic and political landscape in Sri Lanka, highlighting the country’s improving economic outlook, enhanced political stability, and a favourable environment for foreign investment, the release said.

He also outlined the policy priorities of the new Government, with particular emphasis on ongoing economic reforms, investment-friendly initiatives, and opportunities to further strengthen bilateral economic and trade cooperation between Sri Lanka and Pakistan, it said.

He invited Dr. Munir to consider leading a delegation of prominent business leaders and investors to Sri Lanka, with a view to engaging with Sri Lankan counterparts and exploring potential investment opportunities and avenues for collaboration across key sectors.

The meeting was facilitated by. Honorary Consul of Sri Lanka in Hyderabad, Mehmood Mandviwalla, who was also present. Minister and Head of Chancery of the Sri Lanka High Commission in Islamabad, Christy Ruban, and Consul General of Sri Lanka in Karachi, Sanjeewa Pattiwila also participated at the meeting.

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IRONMAN 70.3 Colombo Returns, Kicks Off #ActiveColombo City Transformation

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All partners at the Ironman 70.3 Colombo Launch with Vraîe Cally Balthazaar, Mayor of Colombo at the event held last Wednesaday at Shangri-La.

Officials from the Western Provincial Council, Colombo Municipal Council, and event organisers marked the official launch of IRONMAN 70.3 Colombo – Presented by Port City Colombo today at Shangri-La Colombo, the Host Hotel, signalling the return of Sri Lanka’s premier endurance event and the start of the long-term #ActiveColombo initiative.

Scheduled from 19–22 February 2026, the world-class triathlon will anchor #ActiveColombo Week, combining international competition with a city-wide celebration of sport, health, and urban vitality. Highlights include the KAYA Colombo – Active Lifestyle & International Expo (19–21 Feb), the family-focused IRONKIDS Colombo (21 Feb), and the IRONMAN 70.3 Colombo triathlon (22 Feb), featuring swim, bike, and run events at Port City Colombo, the Official Venue Partner.

The event is set to welcome nearly 1,000 athletes from over 49 countries, many visiting Sri Lanka for the first time, bringing international media attention and significant economic impact across hospitality, aviation, retail, and transport. As part of the globally recognised IRONMAN® circuit, Colombo now joins iconic host cities such as Sydney, Nice, and Muscat, reinforcing its position as South Asia’s emerging endurance sports hub.

“IRONMAN 70.3 Colombo embodies the spirit of resilience and excellence,” said Rajan Thananayagam, Director of Serendib Multisport (Pvt) Ltd. “This event puts Sri Lanka on the world stage and showcases Colombo as a vibrant, welcoming destination for athletes and their families.”

The launch also introduced #ActiveColombo, a long-term initiative aimed at transforming Colombo into South Asia’s leading Active City. The programme focuses on activating everyday urban spaces through parks, waterfronts, beaches, clean streets, shaded corridors, and safe environments that encourage walking, cycling, yoga, and other outdoor activities.

“Through #ActiveColombo, we aim to inspire a more active generation while strengthening Colombo’s appeal as a globally competitive capital,” said Hanif Yusoof, Governor of the Western Province. Mayor Vraîe Cally Balthazaar added that the initiative symbolises inclusive growth, promoting healthier streets, greener corridors, and vibrant public spaces for residents and visitors alike.

With signature policies such as the “Every Active Street is a Shaded Street” Shade the Road initiative, Colombo aims to combine urban health, economic growth, and international sports tourism. Experts say cities that invest in active lifestyles see 10–20% reductions in long-term healthcare costs, safer streets, and higher visitor spending.

By linking IRONMAN 70.3 Colombo with #ActiveColombo, organisers hope to position the city as a healthier home for citizens, a premier destination for high-value tourists, and a credible host for global sporting and lifestyle events, cementing Colombo’s reputation as South Asia’s Active Capital.

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