Hatton National Bank PLC’s group net profit fell 4.9 percent year on year to Rs. 11.0 billion in the September quarter, as wider trading losses and a swing to impairment charges outweighed growth in interest and fee income. Profit attributable to shareholders fell 4.6 percent to Rs. 10.53 billion, taking earnings per share to Rs. 18.24 from Rs. 19.12 a year earlier, according to the bank’s interim financial statements.
Group net interest income rose 24.8 percent to Rs. 36.36 billion, while net fee and commission income increased 14.9 percent to Rs. 7.51 billion. Total operating income grew 15.8 percent to Rs. 51.25 billion. Trading losses widened to Rs. 8.99 billion from Rs. 672 million, partly offset by a rise in other operating income to Rs. 8.04 billion from Rs. 2.93 billion.
The group booked a Rs. 1.59 billion impairment charge, compared with a Rs. 2.09 billion reversal a year earlier. Net operating income after impairment rose 7.2 percent, while operating expenses climbed 18.5 percent to Rs. 27.28 billion. Profit before income tax declined 4.8 percent to Rs. 17.74 billion.
At bank level, quarterly net profit fell 4.3 percent to Rs. 9.88 billion despite a 28.0 percent rise in net interest income to Rs. 30.22 billion. The bank recorded a Rs. 1.23 billion impairment charge, against a Rs. 2.34 billion reversal in the corresponding quarter of 2025.
For the nine months to September, group net profit fell 3.4 percent to Rs. 33.56 billion, while standalone bank profit rose 4.8 percent to Rs. 33.03 billion. Group net interest income increased 23.7 percent to Rs. 103.10 billion, and the group booked Rs. 6.62 billion in impairment charges against a Rs. 6.94 billion reversal a year earlier.
The bank’s gross loans and advances grew 20.7 percent from end-December to Rs. 1.82 trillion, while deposits increased 12.8 percent to Rs. 2.21 trillion. Its net Stage 3 loan ratio stood at 1.09 percent at end-September, with Stage 3 coverage at 73.46 percent.
