HNB
Hatton National BankLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 224bn
- P/E (ttm)
- 4.9×
- EPS (ttm)
- 81.40
- Dividend yield
- 3.7%
- Return on equity
- 16.6%
- Beta
- 0.51
- Free float
- 48%
- 52W high
- 455.75
- 52W low
- 319.03
- 1D change
- +0.66%
- YTD return
- −15.8%
Hatton National Bank is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Cheapest bank on the board, returns recovering
- 01
Buy, LKR 480 target: HNB is the cheapest bank at 4.9× with a recovering 17% ROE — deep value in a healing banking system.
- 02
A large branch and SME franchise gives leverage to the credit-growth recovery as rates fall.
- 03
Resolved sovereign exposure and improving asset quality de-risk the earnings base.
- 04
A re-rate to ~5.9× FY26E gets to LKR 480; the discount to peers is too wide for the returns.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 46.0 | 50.0 | 55.0 |
| EPSLKR | 82.1 | 88.7 | 97.6 |
| DPSLKR | 14.8 | 16.0 | 17.3 |
| P/E× | 4.9× | 4.5× | 4.1× |
| EPS growth% | — | +8.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
SME quality cracks; NIM compresses.
3.9× stressed EPS
Credit growth revives; ROE recovers.
5.9× FY26E
Full re-rate to a peer multiple.
6.8× FY27E
Why so cheap versus COMB?
A lower-quality franchise deserves the discount.
Some discount is fair, but 4.9× on a recovering 17% ROE overstates it.
ROE failing to climb back toward peers.
Is SME exposure a risk?
SME books are first to crack in a downturn.
SME is also first to benefit as rates fall and demand returns; quality is improving.
A rise in SME delinquencies.
NIM as rates fall?
Spreads compress with the cycle.
Credit growth and lower provisioning offset much of it.
Sharp NIM compression with no volume offset.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 87.9 | FY25 base +8% |
| Target multiple | ~5.9× FY26E | narrow the peer gap from 4.9× |
| Implied P/B | ~0.9× | low for a recovering 17% ROE |
| 12-month target | LKR 480 | ≈5.9 × 87.9, rounded |
- 01NIM compressionWATCH · Policy rate, quarterly NIM
- 02SME asset qualityWATCH · Infection ratio, SME book
- 03Sovereign exposureWATCH · T-bond holdings, yields
- 04Credit-growth paceWATCH · Advances growth
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| COMBCommercial Bank of Ceylon | 209.00 | +1.01% | 5.5× | 344bn | |
| HNBHatton National Bank— THIS PAGE | 402.12 | +0.66% | 4.9× | 224bn | |
| SAMPSampath Bank | 143.67 | +1.32% | 5.5× | 169bn |
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.