HNB FINANCE stages strong turnaround in FY23/24, PAT soars 225%

Sri Lanka’s leading integrated financial services provider, HNB FINANCE PLC, announced its financial results for the fiscal year which ended March 31, 2024 (FY23/24), demonstrating resilience and growth amidst a volatile economic environment.

The company marked significant turnaround, recording a 225 percent growth in profit-after-tax (PAT) to Rs.621 million compared to a loss of Rs.496 million reported in the previous year.

HNB FINANCE’s financial performance improved across key metrics, with an increase in gross income by 11 percent to Rs.14.9 billion, driven by a 8 percent increase in interest income to Rs.13.1 billion.

Furthermore, the company also revealed that its interest expenses saw a 4 percent reduction to Rs.7.6 billion compared to Rs.7.9 billion the previous year, while its net assets also surged by 12 percent to Rs.5.7 billion, compared to Rs.5.1 billion the previous year.

Commenting on the results, HNB FINANCE Chairman Rajive Dissanayake said: “We are encouraged by the significant improvement in our financial performance for FY23/24. This turnaround is a testament to our team’s dedication and strategic execution. We remain committed to supporting Sri Lanka’s economic development by providing innovative financial solutions and fostering inclusive growth.”

Operating expenses were efficiently managed, rising only 13.5 percent, and the company also witnessed a significant improvement in earnings per share, which jumped to Rs.0.36 from a negative value in the previous year.

HNB FINANCE Managing Director and CEO Chaminda Prabhath also commented, stating: “Our focus on operational efficiency and disciplined risk management has yielded positive results. We are confident that HNB Finance is well-positioned to capitalize on future opportunities while creating sustainable value for our stakeholders and will continue to do so.”

Moreover, the company also witnessed prominent growth in key segments, including its Gold Loan portfolio, which grew by 5 percent, as well as its gross Leasing portfolio, which saw a robust increase of 17 percent.