Hatton National Bank delivered solid financial results for the first half of 2026, posting significant growth in lending and deposits while maintaining asset quality amid economic challenges.

Hatton National Bank Group announced robust interim results for the six-month period ending June 2026, recording a Profit After Tax of Rs. 22.5 billion. The lender demonstrated considerable expansion across its core business segments, with gross loans and advances climbing by Rs. 224 billion to reach Rs. 1.7 trillion, while customer deposits increased by Rs. 138 billion to surpass Rs. 2.1 trillion.

The bank's revenue generation accelerated during the period, with Net Interest Income rising 21 percent year-on-year to Rs. 55.2 billion. The Net Interest Margin expanded to 4.4 percent from 4.26 percent in the prior year, driven by strong lending momentum that offset rising funding costs in the evolving interest rate environment. Non-interest income streams also performed well, with fee and commission income climbing 30 percent year-on-year, supported by increased digital banking adoption and card transaction volumes alongside contributions from transaction banking and leasing divisions.

Total Operating Income grew 27 percent year-on-year to Rs. 76.7 billion. Despite moderate increases in operating expenses attributed partly to higher foreign currency-denominated technology and payment processing costs, the bank improved its cost efficiency, reducing the annualised cost-to-income ratio to 34.48 percent from 38.56 percent previously. The bank maintained sound asset quality with a Net Stage 3 ratio of 1.17 percent, though impairment provisions reached Rs. 4.1 billion during the first half.

Managing Director Damith Pallewatte noted the bank's ability to expand its lending and deposit bases while preserving financial strength amid challenging market conditions. The bank maintained strong capital and liquidity positions, with a Tier I Capital Ratio of 15.44 percent and a Total Capital Ratio of 18.18 percent, both comfortably above regulatory requirements. The bank's management indicated continued focus on strategic priorities and support for Sri Lanka's economic recovery moving forward.