HNB Group reports significant growth in its financial performance for Q1 2025, driven by its strategic initiatives and strong capital management.

Information on the Target

HNB Group has demonstrated remarkable resilience and growth momentum, building a solid foundation for robust expansion within the financial sector. For the first quarter of 2025, HNB reported a year-on-year increase of 49% in Group Profit After Tax (PAT), amounting to Rs 11.1 billion, alongside a 64% hike in Bank PAT, reaching Rs 10.2 billion. This performance is attributed to a commendable growth trajectory, underpinned by strategic investments and a commitment to enhancing service delivery.

Additionally, HNB has maintained strong capital buffers exceeding 800 basis points over regulatory requirements, which bolster its financial stability and ability to navigate market fluctuations. The bank has also reported notable improvements in asset quality, achieving a Net Stage 3 ratio of 1.82%. As part of its strategic initiatives, HNB has integrated its fully owned investment banking business, further enhancing its value proposition to stakeholders.

Industry Overview in Sri Lanka

The banking and financial services sector in Sri Lanka is evolving rapidly, driven by increasing digital transactions and a significant push towards a cashless economy. Institutions like HNB are at the forefront of this tr