Group PAT reached Rs 34.7 Bn, marking a 47% YoY increase, while the Bank’s PAT grew by 42% YoY to Rs 31.5 Bn.
Commenting on the performance, Mr. Nihal Jayawardena, Chairman of HNB PLC stated,
“The period under review has been one of steady progress for both HNB and the broader Sri Lankan economy.
While challenges remain, reform measures have delivered encouraging results, with inflation moderating, currency remaining relatively stable and GDP growing by 4.8% during the first half of the year.
Fiscal improvements and the progress under the IMF programme have strengthened confidence in the country’s recovery trajectory.
In this backdrop we remain committed to supporting the national development plans of Sri Lanka.”
The significant reduction in average interest rates compared to the corresponding period of the previous year, resulted in interest margins narrowing over the period.
The significant growth in the balance sheet supported to offset the impact to a great extent, with net interest income improving to Rs 69.2 Bn for the 9 months.
Net Fee and Commission Income registered a strong YoY growth of 24.3%, supported by the continued expansion in loans and advances during the first nine months of 2025, compared to the same period in 2024.
This growth was further supported by the enhanced performance of HNB’s Transaction Banking operations and digital platforms, and card services.
Exchange income recorded a significant improvement, reaching Rs 4.2 Bn during the first nine months of 2025, reversing the loss of Rs 2.0 Bn reported in the same period last year.
This growth was primarily driven by the movement in exchange rate alongside a notable increase in foreign currency transactions, particularly due to the surge in vehicle imports during the period.
HNB’s continued emphasis on proactive risk management and recovery efforts were reflected in a Rs 7.5 Bn impairment reversal during the period, a significant turnaround from the Rs 3.2 Bn charge in the same period last year.
Asset quality metrics continued to improve, with the Net Stage 3 ratio falling to 1.36%, from 1.88% in December 2024, while the Stage 3 coverage ratio remained steady at 75.64%, reflecting HNB’s strong risk management discipline.
Mr. Damith Pallewatte, Managing Director / Chief Executive Officer of HNB PLC, commented that,
“HNB’s journey has been guided by a clear strategic vision—strengthening our role as a catalyst for economic progress while driving innovation and inclusivity.
Our focus continues to be on enabling growth for MSMEs, which form the backbone of Sri Lanka’s economy.
Through solutions such as HNB Accept—the latest addition to our suite of products and services—we are expanding access to digital payments, empowering entrepreneurs and small businesses to participate fully in the digital economy.
At the same time, we stay attuned to the diverse needs and aspirations of all customer segments.
In premium banking, this understanding is exemplified by the launch of Club Elite Mastercard, which sets a new benchmark for exclusivity and service.
These initiatives underscore our broader commitment to combining technology, convenience, and trust to deliver sustainable value.
We are also encouraged by being recognised as Sri Lanka’s Strongest Bank by The Asian Banker.
This accolade is a testament to our resilience and strategic focus and reflects the trust of our customers and the dedication of our team.
As we look ahead, our priorities are clear—accelerating financial innovation, deepening customer relationships, and reinforcing inclusive growth, all while maintaining resilience and prudent risk management.”
As at the end of September 2025, the Group’s asset base surpassed Rs 2.6 Tn, with the Bank contributing Rs 2.35 Tn, reflecting a year-to-date growth of 17.9%.
This expansion included a Rs. 287.7 Bn increase in net loans and advances at Group level, of which Rs. 262.6 Bn was attributable to the Bank.
Meanwhile, the Group’s deposit base grew by approximately Rs 182.0 Bn during the first nine months of the year, reaching Rs 1.93 Tn, with the Bank accounting for Rs 165.0 Bn of this growth.
During the period, HNB maintained strong capital buffers, with Tier I and Total Capital Adequacy Ratios standing at 16.74% and 20.13%, respectively, well above the regulatory minimums of 9.5% and 13.5%.
The Bank also upheld a strong liquidity position, as reflected in its All currency Liquidity Coverage Ratio of 227.45%, significantly exceeding the regulatory threshold of 100%.
HNB is rated AA- (lka) by Fitch Ratings Lanka Ltd. Reinforcing its reputation for excellence, HNB was recognised by The Asian Banker as “Sri Lanka’s Strongest Bank” and awarded “Best Retail Bank in Sri Lanka” for the 15th time.
The Bank is also ranked among the “Top 1000 Banks in the World” as affirmed by The Banker magazine UK. HNB also received the prestigious title of “Best Bank for Large Corporates” at the Euromoney Awards for Excellence 2025.