Hatton National Bank PLC said total assets crossed Rs. 2.5 trillion in the first quarter of 2026, marking a milestone for the bank as it posted a Profit After Tax of Rs. 9.95 billion at the bank level and Rs. 10.35 billion at the Group level.
Interest income grew 10% year-on-year and outpaced higher funding costs, lifting Net Interest Income to Rs. 26.9 billion, up 13.5%. Net Interest Margin widened to 4.45% from 4.26%, driven by disciplined balance sheet expansion supported by a growing deposit base and a stable funding mix. Net fee and commission income rose 40.9% YoY to Rs. 6.8 billion on stronger leasing, card and transaction banking activity.
Total operating income for the quarter rose 17.2% to Rs. 36.1 billion. Operating expenses climbed 19.6% on higher customer activity, while impairment provisions of Rs. 2.6 billion were booked against a Rs. 379.7 million reversal in Q1 2025, reflecting a more cautious credit risk stance. The net Stage 3 ratio edged up nine basis points to 1.18%, with Stage 3 provision coverage at 73.29%.
Gross loans and advances grew by Rs. 113.8 billion and deposits by Rs. 61.7 billion. Tier I capital stood at 15.03%, total capital at 18.07% and the All-Currency Liquidity Coverage Ratio at 194.44%.
Managing Director/CEO Damith Pallewatte said the bank had balanced customer support with prudence amid global geopolitical spillovers. The Board also acknowledged the contribution of outgoing chair K.V. Nihal Jayawardena, PC, and welcomed Suresh Shah as the new Chairman.
The print follows the Central Bank’s confirmation that all banks have been checked for vulnerabilities following the NDB fraud disclosure, and is the first major Q1 2026 print from a top-tier bank.
