Hatton National Bank: 3Q CY21 - Modest PAT pickup as prudential impair...

We rollover our valuations to CY22E and increase our TP for HNB to LKR 185.00/share (+12.1% to old TP; +20.3% upside; +26.2% TSR) and HNBNV to LKR 155.00/share (+19.2% to old TP; +14.8% upside; +25.1% TSR). HNB’s 3Q CY21 PAT saw a modest 1.8% YoY improvement as a higher impairment charge absorbed a robust top line. We believe that prudential impairments would continue in 4Q as well, before moderating in CY22E. Loan growth came ahead of our estimates and management indicated that 3Q saw some c...

Hatton National Bank: 1Q CY21 - Low NPL profile, high capitalisation, ...

We maintain our BUY rating and TP for HNB at LKR 165.00/share (+27.2% upside; +33.7% TSR) and HNBNV at LKR 130.00/share (+29.4% upside; +37.8% TSR). HNB’s bottom line saw a 55.1% YoY pickup in 1Q CY21, largely coming from 1) trading gains, 2) HASU’s premium income and 3) a lower impairment charge. With a drop in short-term loans, HNB marked a contraction in its loan book. NPL stock fell 1.3% QoQ, while CoR dropped to 139bps (-89bps YoY; -48bps QoQ), while specific provision coverage increased...

Sri Lanka: Banking SL - Rising above the clouds

* Sector valuations at a decade low, driven by weakening ROEs and foreign investor exits * Major factors which weighed down profitability to fall away in CY21E, paving the way for better ROE * The banks index took the biggest hit during the pandemic; potential for a rerating with improving fundamentals * Top line to pick up on loan growth and NIM expansion * Gradual improvement in asset quality to lead to lower Cost of Risk * Normalising cost efficiency, tax savings ...

Hatton National Bank: Sri Lanka: HNB SL - Asset quality improves; bott...

We maintain our BUY rating and TP for HNB at LKR 165.00/ share (+27.2% upside; +33.7% TSR) and HNBNV at LKR 130.00/share (+28.4% upside; +36.8% TSR). HNB’s NPL stock dropped 31.2% QoQ, with a major part coming from releasing a sizeable single exposure into performing category. While impairments remained higher in 4Q CY20, we see this tapering down in CY21E, given relatively better economic activity. Approx. 15.0% of the book is currently in moratoriums, and we believe that the impairment prov...

Moody's withdraws Hatton National Bank PLC's ratings due to business r...

Rating Action: Moody's withdraws Hatton National Bank PLC's ratings due to business reasons. Global Credit Research- 15 Jan 2021. Singapore, January 15, 2021-- Moody's Investors Service has today withdrawn the following ratings, assessments and outlooks of Hatton National Bank PLC:.

Sri Lanka: 2021 Equity Strategy - Zero In On The Recovery

* Colombo All Share Price Index ( recovered all losses since bottoming out in May 56 7 since May, +8.6% YTD) A Manufacturing drive led the gains opportunities remain in large caps that are yet to pickup * Negative interest rates is the key catalyst equities will remain the preferred asset class in 2021 amidst a low interest rate environment * We forecast ASPI to reach 7 400 7 600 in 2021 with local investors continuing to carry the mantle * Global investors would look to rebal...

Hatton National Bank: 3Q CY20 - Key catalysts discounted by short-term...

We maintain our BUY rating and TP for HNB at LKR 140.00/ share (+22.6% upside; +29.6% TSR) and HNBNV at LKR 114.00/share (+25.3% upside; +34.1% TSR). While core earnings growth is under pressure in CY20E, we believe HNB offers attractive medium-term returns at present valuations. As we highlighted with our 2Q update, a major portion of the NPL stock (~22.0%) is being recovered which would significantly improve the quality of the loan book. Improved sentiment and sustained loose monetary condi...

Moody's announces completion of a periodic review of ratings of Hatton...

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Hatton National Bank PLC. Global Credit Research- 14 Oct 2020. Singapore, October 14, 2020-- Moody's Investors Service has completed a periodic review of the ratings of Hatton National Bank PLC and other ratings that are associated with the same analytical unit.

Hatton National Bank PLC: Update following rating downgrade

Our credit view of Hatton National Bank PLC, reflecting the bank's modest asset quality, which is balanced by its relatively strong capital and stable funding.

Hatton National Bank: 2Q CY20 – Re-rating potential on clearing conc...

We maintain our BUY rating on HNB with a revised TP of LKR 140.00/ share (+3.7% to old; +20.5% TSR), and HNB NV at LKR 114.00/share (+3.6% to old; +34.3% TSR). Both classes are trading at significant discounts to book value, and we believe this is due to the concentrated, large NPL book (SOE-linked). We expect some of the SOE debt to be serviced again, which would be a major positive for rerating. Overall, we forecast a 20.8% YoY drop in net profit in CY20E, leading to a ROE of 7.8%, but exp...

Hatton National Bank Ltd.: Update following placement of ratings and a...

Our credit view of Hatton National Bank Ltd., reflecting the bank's modest asset quality and profitability, balanced by high capitalization and stable liquidity.

Sri Lanka banks: Muted profitability, but limited systemic pressure

In this report, we highlight the pressing current themes around the banking sector. Overall, majority of the Sri Lankan government’s key support measures for the economy are implemented through the banking system, and the banks are expected to absorb the economic shock partially. In return, banks have received several concessions to maintain the systemic stability. We expect sector profitability to be muted in CY 20e, with (1) weak credit growth, (2) contracting margins, (3) lower supplementa....

Moody's announces completion of a periodic review of ratings of Hatton...

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Hatton National Bank Ltd.. Global Credit Research- 28 Nov 2019. Singapore, November 28, 2019-- Moody's Investors Service has completed a periodic review of the ratings of Hatton National Bank Ltd. and other ratings that are associated with the same analytical unit.

NPL stock continues to drop; NIM to moderate in 4Q

Hatton National Bank Ltd.: Update following rating affirmation

Our credit view of Hatton National Bank Ltd., reflecting the bank's weaker asset quality and profitability, balanced by good capital and stable funding and liquidity.

Hatton National Bank Ltd.: Key Facts and Statistics - H1 2019

A summary company profile, detailing Hatton National Bank Ltd’s business operations and financial highlights.

Hatton National Bank Ltd.: Update to credit analysis

Our credit view of Hatton National Bank Ltd., reflecting the bank's healthy profitability, balanced by a slight weakening in its asset quality and capital.

Hatton National Bank Ltd.: Update to credit analysis following rating ...

Our credit view of HNB, reflecting its enhanced capital adequacy and a slight weakening in its asset quality.

Hatton National Bank Ltd.: Update to credit analysis following rating ...

Our credit view of HNB, reflecting its enhanced capital adequacy and a slight weakening in asset quality.

1 director bought

A director at Hatton National Bank PLC bought 3,664,317 shares at 240.000LKR and the significance rating of the trade was 88/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last tw...