Sri Lanka’s Hatton National Bank PLC records Rs. 7.7 billion profit after tax for first nine months of 2020
The Hatton National Bank PLC (HNB) of Sri Lanka has reportedly stated that it has recorded a profit-after-tax (PAT) of Rs. 7.7 billion for the first nine months of 2020, while the Group recorded a PAT for Rs. 8.8 billion for the same period.
Commenting on the performance, HNB Chairman Dinesh Weerakkody has been quoted as saying, “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 US$ 60 million with the French Development Financing Institution, PROPARCO to support the SME sector of Sri Lanka.”
Managing Director/CEO Jonathan Alles has said, “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. 24 billion to COVID-affected businesses under the CBSL Saubagya 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.”
OSL take:
Despite internal and external challenges posed by the global Covid 19 pandemic, Sri Lanka’s banking sector has shown resilience and capability of facing the economic shocks. This is a positive sign of the country’s ability to return to normalcy quicker than some of the other South Asian economies. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. Foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka given the support of a strong banking system.
| Article Code : | VBS/AT/19112020/Z_3 |