Hatton National Bank PLC

Legal Status and Ownership

Hatton National Bank PLC (HNB) is a Public Limited Company that was incorporated in Sri Lanka on March 5, 1970. The institution is formally recognised as a Licensed Commercial Bank and was re-registered under the Companies Act No. 7 of 2007.

Ownership of the bank is distributed among a broad base of over 8,500 voting and more than 11,000 non-voting shareholders, comprising both individual and institutional investors. The bank's ordinary shares, along with its unsecured subordinated and senior redeemable debentures, are publicly traded on the Colombo Stock Exchange (CSE).

History and Market Position

The origins of HNB trace back to 1888 with the establishment of Hatton Bank, which was founded to cater to the financial needs of British tea planters in the central highlands of Sri Lanka. The institution evolved significantly over the subsequent decades, culminating in its formal establishment as Hatton National Bank in 1970, which marked its transition into a full-fledged commercial banking entity. In 2024, the bank commemorated 136 years of continuous operation.

HNB is recognised as the second-largest private commercial bank in the country. Its systemic importance to the national financial system is underscored by its designation as one of only two private sector banks to be declared a Domestic Systemically Important Bank (D-SIB).

Fitch Ratings assigned HNB a National Long-Term Rating of 'AA-(lka)' with a Stable Outlook, following an upgrade in January 2025. The bank has also received external recognition, being ranked as the No. 1 Corporate in Sri Lanka in the Business Today Top 40 rankings for 2023–2024 and named ‘Sri Lanka’s Best Bank’ by Euromoney in 2024.

Retail and Personal Banking Services

HNB provides a comprehensive range of retail banking products. Its deposit portfolio includes standard savings accounts and specialised products such as Singithi Children's accounts, HNB Teen/Youth accounts, Senior Citizens accounts, and Salary SMART accounts for salaried employees. The bank also offers fixed deposit facilities for customers seeking term investments.

For personal financing needs, the bank's product suite features housing loans, personal loans, and education loans. It also provides specialised green loans for environmentally friendly projects. Additionally, HNB offers leasing and pawning services. The bank issues a full range of Visa and Mastercard credit and debit cards to its customers.

Corporate and SME Banking Solutions

In the wholesale and corporate banking segment, HNB delivers a suite of services tailored to large businesses. These include corporate credit facilities, project finance for large-scale ventures, international trade services, and syndicated loans. The bank's transaction banking division, HNB TxB, and its custodian services support complex corporate financial operations.

The bank also offers specialised financial solutions, including Islamic banking facilities. For the Small and Medium Enterprise (SME) and microfinance sectors, HNB provides distributor and supplier financing, working capital financing, and development loans. A key initiative in this area is the "Gami Pubuduwa" microfinance scheme, designed to support grassroots economic development.

Operational Scale and Financial Metrics

HNB maintains a significant physical presence across Sri Lanka, operating a network of 254 fully-fledged branches. This is complemented by 832 Self-Service Machines (SSMs) strategically located for customer convenience. The bank's operations are supported by a workforce of 5,577 employees.

According to financial figures as of December 31, 2024, the bank's total assets were recorded at Rs. 2,078.5 billion, while the HNB Group's total assets stood at Rs. 2.20 trillion. Customer deposits for the bank reached Rs. 1,715.4 billion, with the Group's total customer deposits amounting to Rs. 1.75 trillion.

For the financial year ending December 31, 2024, HNB reported a Profit After Tax (PAT) of Rs. 41.34 billion at the bank level. The consolidated PAT for the HNB Group was Rs. 44.84 billion for the same period. The fact sheet does not provide details on specific fees or interest rates for its products.

Digital Banking Ecosystem

HNB has established a significant digital footprint, serving over 802,000 active digital customers through an extensive ecosystem. The bank's digital offerings are supported by a network of 27,000 merchant outlets. Key platforms include the HNB SOLO payment app, which has achieved over 486,000 downloads, and HNB MOMO, a mobile POS solution for merchants. The bank also offers the HNB Payfast payment gateway and provides five distinct digital channels for its retail customers. A retail Self-Onboarding platform was also recently launched to enhance digital customer acquisition.