Hatton National Bank (HNB) reported a strong start to 2026, achieving a major milestone as its total asset base surpassed Rs 2.5 trillion, supported by disciplined balance sheet growth and improved operational performance.
The Bank posted a Profit After Tax (PAT) of Rs 9.95 billion for Q1 2026, while Group PAT reached Rs 10.35 billion, reflecting resilience despite heightened economic volatility.
Net Interest Income (NII) rose to Rs 26.9 billion, driven by a 10% year-on-year increase in interest income that outpaced growth in funding costs. Net Interest Margin (NIM) also improved, rising from 4.26% to 4.45%, supported by steady loan expansion and a strong deposit base.
Non-funded income showed robust growth, with net fee and commission income increasing by 40.9% to Rs 6.8 billion, driven by strong leasing activity, higher card usage, increased transaction banking volumes, and greater adoption of digital banking solutions. Exchange income also rose by 6% to Rs 1.6 billion, supported by improved trade flows and customer activity.
Total operating income for the quarter increased by 17.2% year-on-year to Rs 36.1 billion, although operating expenses also rose by 19.6% due to higher customer activity, credit-related costs, and regulatory levies. Despite this, the cost-to-income ratio remained broadly stable at 37.15%.
The Bank adopted a cautious credit risk stance during the period, recording impairment provisions of Rs 2.6 billion compared to a reversal in the previous year, reflecting a more conservative approach amid global and domestic uncertainties. Asset quality remained stable, with the net Stage 3 ratio slightly increasing to 1.18% and Stage 3 coverage maintained at a strong 73.29%, ensuring adequate buffers against potential risks.
Overall, the results highlight HNB’s ability to maintain growth momentum while strengthening its balance sheet and preserving asset quality in a challenging macroeconomic environment.