Sri Lanka’s Hatton National Bank records post-tax profits of Rs. 20.1 billion, growth of 47%
Sri Lanka’s Hatton National Bank PLC (HNB) has reportedly recorded a group profit after tax (PAT) of Rs. 20.1 billion, which is a growth of 47% year-on-year (YoY). The bank’s PAT has recorded an increase to Rs. 17.3 billion as economic activity picked up during 2021.
According to a statement issued by the bank, the group recorded a profit before tax (PBT) of Rs. 23.1 billion, a 31.1% YoY increase compared to 2020. The group PAT of Rs. 20.1 billion enabled a return on assets (ROA) of 1.42% while profit attributable to shareholders, which rose by 45.3% YoY to Rs. 19 billion, delivered a return on equity (ROE) of 11.50%. Total group assets improved to Rs. 1.5 trillion, recording a 6% YoY expansion.
The Board of Directors declared a final dividend of Rs. 9.00 per share, which they noted is the highest dividend declared over the past few decades, consisting of a cash dividend of Rs. 6.50 per share and a scrip dividend of Rs. 2.50 per share, the statement noted.
Also, the bank’s PBT amounted to Rs. 19.8 billion, a 31.5% YoY increase from the PBT reported in 2020. The total effective tax rate for 2021 was at 28.9% as the income tax rate reduced to 24% from 28% as well as due to reversals of excess provisions from previous years. The resulting PAT of Rs. 17.3 billion generated a ROA of 1.3% and a ROE of 12.1%, respectively.
Commenting on the bank’s performance during the year, HNB PLC Chairperson Aruni Goonetilleke has reportedly stated, “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.”
Also, HNB PLC Managing Director/Chief Executive Officer (MD/CEO) Jonathan Alles has stated, “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 a testament to our strong and stable performance.”
OSL take:
The growth in the post tax profits posed by Sri Lanka’s Hatton National Bank is indicative of the strength and stability of the country’s banking system. A strong banking system is a prerequisite for a country like Sri Lanka that is gearing to become a business destination in the South Asian region. The country’s geographical positioning in the Indian Ocean and the many trade agreements and concessions enjoyed have all aided Sri Lanka in its path to becoming an emerging business hub. Foreign businesses/investors could confidently enter the country given the expanding economic activities that have opened a host of business/investment opportunities, which are all backed by a strong banking system.
| Article Code : | VBS/AT/03032022/Z_4 |