HNB Finance records strong performance in 1H

Tuesday, 16 November 2021 01:20 - - {{hitsCtrl.values.hits}}

HNB Finance PLC has reported a steady financial growth and performance in its Interim Financial Statements issued for the period ending 30 September 2021 for FY21/22.

The company recorded a Profit Before Tax (PBT) and Profit After Tax (PAT) of Rs. 243.5 million and Rs. 167.5 million respectively, marking a 151.07% increase in its profit for the period over the previous year. The company’s net interest income increased by 62%, recording Rs. 1.9 billion over the previous year’s Rs. 1.2 billion.

“The commendable performance showcased by our dedicated team of financial professionals over the last six months, despite challenges in the prevailing environment, has enabled our operation to adapt and deliver robust figures. We are prepared to face the coming months with much optimism and enthusiasm and expect to see a seismic shift in momentum from our 70-strong branch network during the second half of the financial year,” noted HNB Finance Chairman Dilshan Rodrigo.

The company’s financial performance was adversely affected over the last two years with the state-implemented travel restrictions and bad conditions in the macro-level due to the COVID-19 pandemic. However, with the relaxation of said restrictions, the company has been able to maintain a positive growth in profit and performance.

A fourth lockdown was implemented from 20 August to 30 September due to another COVID-19 wave, raising concerns for second quarter performance. Inevitably, most customers were also hit by the lockdown, further limiting their earnings to satisfy their monthly payments, resulting in a 7% quarterly increase and 26% biannual increase in impairment charges and other losses incurred by the company during this period.

Despite these obstacles, the company saw a strong performance in its product portfolio, specifically in the gold loan sector, managing to record a total profit of Rs. 91 million, a strong 128% increase compared to the same quarter in the previous year.

“Being a customer-centric entity, we undertook the most feasible approach of adapting our key products and services digitally, ensuring that our customers will have a convenient and accessible experience as they engage with us even during country-wide lockdowns.

“Every initiative that we embark upon moving forward will reflect our commitment to be aligned with every requirement in the new normal, such as health guidelines, provisions of personal protective equipment and more,” noted HNB Finance Managing Director/CEO Chaminda Prabhath.

With the stabilisation of the local economy, the company envisions a positive future outlook with profit margins expected to meet and exceed that from the pre-COVID financial arena. Over the next six months, the company will be implementing rigorous plans to ensure a refined business model and stringent health and safety protocols for its entire staff.