📈 HNB Ranks #1 in K Seeds Investments’ 2025 Banking Report

Hatton National Bank (HNB) has been named the best-performing bank in "Category 1" (Domestic Systematically Important Banks) for the 2025 financial year. The ranking, conducted by K Seeds Investments, evaluated 16 licensed banks across nine weighted KPIs, including Return on Equity (ROE), Net Interest Margin (NIM), and Asset Quality. • Sector Performance & Ranking: • HNB topped the premier category under new CBSL "Banking Act Directions No. 01 of 2025," which categorizes banks based on size, complexity, and interconnectedness rather than assets alone. • Evaluation metrics included Cost-to-Income ratio, CASA, Loan Growth, and Impaired Loans (Stage 3). • Macroeconomic Context: • 2025 marked a recovery milestone with moderated inflation and exchange rate stability. • Sovereign risk perceptions eased following a Fitch rating of CCC+, boosting investor confidence in the banking sector. • Credit affordability improved, driving demand in both corporate and retail segments. • Resilience & Challenges: • Asset quality showed gradual recovery as NPLs moderated from crisis peaks. • Despite the economic disruption caused by Cyclone Ditwah in December 2025, the sector remained resilient due to strengthened capital positions and risk management. _Source: K Seeds Investments Report (Based on 2025 Annual/Quarterly Data)_